Idaho utility proposal could reduce rates
An Idaho-based utility company’s rate adjustment plan could mean savings for its consumers.
Idaho Public Utilities Commission officials said Intermountain Gas Company customer rates would decrease by an average of 10.2 percent if state regulators adopt the company’s annual Purchased Gas Cost Adjustment (PGA) proposal.
The company’s submission calls for passing through to customers approximately $24.5 million, officials noted, referencing if approved by the Idaho Public Utilities Commission, the change would decrease residential rates by 10 percent or $4.12 per month based on average consumption and weather.
The PGA is defined within the industry as the variable component of natural gas rates that can be adjusted every Oct. 1 to account for expenses fluctuating from year to year.
Concerning commercial customers, officials said the proposal would translate to a reduction of 11.9 percent or $21.89 per month. Factors such as a decrease in transportation costs billed to Intermountain by its firm transportation providers; a decrease in the Weighted Average Cost of Gas due to higher production in shale gas wells, leading supply to outpace demand; and benefits resulting from Intermountain’s management of storage and firm capacity rights on various pipeline systems contributed to the potential savings.
Intermountain Gas serves approximately 350,000 customers across southern Idaho, officials said, and the Commission will accept comments on the proposal through Sept. 18.
