Following much bigger gas cost rate changes in the two previous years, Intermountain Gas, a natural gas distribution company in southern Idaho, has asked state regulators for a $22.1 million, or 10%, boost in rates, effective July 1. The Idaho Public Utilities Commission has asked for comments on the annual purchased gas adjustment (PGA) by June 11.

The PUC is seeking comments “not only regarding the reasonableness of the proposed rates, but also on the question of whether Intermountain’s annual PGA adjustments should be processed closer to the winter heating season,” a regulatory commission spokesperson said.

Serving 230,000 customers, Intermountain was granted a 33% increase and 28% decrease in annual PGA rate changes in 2003 and 2002, respectively. Whenever purchased gas costs drop lower than projected, customers get decreases, and unlike general rate increases, there is no increase in earnings for the PGA changes, the PUC spokesperson said.

Last year’s 33% hike was not felt by customers until “well into the winter heating season,” the spokesperson said, prompting the regulators this year to seek stakeholder/customer comments on whether to move the PGA to the fall to “improve the effectiveness of customer price signals and promote greater customer interest.” The later proceeding might also result in more accurate wholesale gas price forecasts, the spokesperson said.

As it does with many fuel cost offset cases, the Idaho PUC intends to handle this rate case through written comment, rather than public hearings, unless it receives written protests or comments that “state why a modified procedure of written comments will not work.”

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