Intermountain Gas proposes rate reduction

Intermountain Gas Company is looking to decrease its natural gas rates.

Intermountain Gas Company has filed its annual Purchased Gas Cost Adjustment application with the Idaho Public Utilities Commission. And, if the PUC approves, it would decrease overall natural gas prices for Intermountain customers by 2.4 percent beginning Oct. 1.The PGCA reflects the cost Intermountain Gas pays for natural gas on the wholesale market on behalf of its customers.

“With the continued development of shale gas production in North America, natural gas reserves are more significant than originally anticipated and supply growth is outpacing any demand increase foreseen in the near future,” said Frank Morehouse, executive vice president and general manager of Intermountain Gas. “This supply strength is reflected in these lower prices.”

Residential customers using gas for space and water heating will save an average 3.1 percent or $1.51 per month, while customers using natural gas only for space heating will see an average decrease of 17 cents per month or .4 percent, based on average weather and usage.Commercial customers, on average, would see a savings of $6.46 per month or 3.1 percent.

The company’s proposal is subject to review and approval by the Idaho PUC.