According to the U.S. Census Bureau, here are just a few of the reasons home buyers prefer homes heated with natural gas:
Residential and commercial rates charged by Intermountain Gas Company (IGC) for the gas delivered to the customer include the following components:
Commodity Charge – The Commodity Charge is the actual cost of the natural gas purchased from suppliers plus the cost of transporting that gas through various pipelines in Intermountain’s system then delivering the gas to customers. The gas cost portion of the Commodity Charge is trued-up in an annual Purchased Gas Adjustment (PGA) mechanism.
Although Intermountain’s overall rates have fluctuated over the years as a result of the PGA, the basic service rates have not changed since 1985.
Customer Charge – The Customer Charge helps to partially recover the costs of delivering natural gas to the customer’s home or business on Intermountain’s local distribution system.
Intermountain purchases natural gas through an unregulated wholesale-commodity market, using a mix of long-term and short-term contracts with independent suppliers. The price customers pay for natural gas reflects what Intermountain actually pays for the fuel. Commission rule does not entitle the utility to make a profit on the gas-supply portion of the bill.
A PGA is a method of reconciling or “truing-up” the prices Intermountain pays for purchasing and transporting natural gas to customers with the rates that are charged for the gas that is delivered. The first part of this process involves looking ahead and establishing the best projected price of natural gas in the upcoming year. The second part looks back and calculates the difference between the previous projected price and the actual price. Sometimes that difference is positive and the customer receives a credit. If the difference is negative, a surcharge is applied to the bill.
The cost of transportation, storage and distribution of natural gas includes the maintenance of pipelines, meters and other equipment. It also encompasses the cost of billing customers and allows for a moderate level of profit for Intermountain’s investment in the local distribution system. Any request for higher rates is reviewed by the Idaho Public Utilities Commission.
RS-1 (Residential): The customer will be billed under the RS-1 tariff if they do not have both natural gas heat and a natural gas water heater, regardless of the number of natural gas appliances in the home.
RS-2 (Residential): The customer will be billed under the lower RS-2 tariff if they have natural gas heat and a natural gas water heater.
GS-1 (General Service): Small commercial or light industrial business will be billed for natural gas service under the GS-1 tariff.
The following cost comparisons for Natural Gas space heating vs. other energy sources are based on 506 therms per year consumed by the average Intermountain Gas Company residential customer using natural gas for space heating.
The following cost comparisons for Natural Gas space heating vs. other energy sources are based on 771 therms per year consumed by the average Intermountain Gas Company residential customer using natural gas for both space and water heating.
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Interested in natural gas information for commercial and large commercial business usage? Use the links below to determine which information best suits your gas needs.
A commercial business using less than 2,000 therms a day and less than 200,000 therms annually click here.
An industrial and large commercial business using 200,000 therms or more annually click here.