Signaling the continued downward trend of wholesale natural gas prices, Intermountain Gas Co. puts its second consecutive purchased gas adjustment (PGA) rate decrease in effect Monday, while Spokane, WA-based Avista Utilities last Friday asked the Idaho Public Utilities Commission (PUC) to lower its rates following a similar drop in the PGA.

Citing lower wholesale gas prices in 2007, Boise, ID-based Intermountain told the Idaho PUC it could lower its retail gas utility rates for the second consecutive year. Intermountain has proposed an 8% cut. The utility’s annual PGA turned up another year in which wholesale costs have been running lower than had been anticipated when the last gas cost rates were set a year earlier. Base rates will be unchanged (see Daily GPI, Aug. 27).

Meanwhile, Avista told the PUC it is seeking approval to decrease its annual PGA by about 4.5%, effective Nov. 1. Avista’s 70,000 customers in northern Idaho have until Oct. 24 to comment on the utility’s request.

Avista fixed costs of supplying gas and some variable costs of gas supply are covered in base rates, which are adjusted only after the company goes through a rate case. Variable costs, such as wholesale market prices for gas, transportation and storage, are adjusted annually through the PGA process.

If approved, Avista’s average residential customer in Idaho would get about a $3.65/month decrease, thanks to what the utility called “more stability in wholesale gas prices, increased storage capacity, and no supply interruptions caused by this year’s crop of hurricanes.”

For Intermountain’s 280,000 customers using gas for space and water hearing, they will begin seeing about a $6 monthly decrease in residential gas utility bills, while those using gas only for space heating will see about a $4/month decrease. Commercial customers will see a decrease of about $29/month, with large industrial customers who buy their own gas and have the utility deliver it will experience an increase of about 9.4% in pipeline transportation charges.

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