In a common scenario being repeated by state regulators throughout the West, the Idaho Public Utilities Commission at month’s end approved a 27.6% natural gas rate increase for Intermountain Gas on Friday and set an Oct. 20 deadline for taking comments on a 23.8% gas rate hike proposal by Avista Utilities a day earlier. The Intermountain rate increase is effective Saturday (Oct. 1), and Avista is seeking a Nov. 1 start for its proposed increase.

Both requests are stimulated by the continuing increases in wholesale natural gas prices and are part of the Idaho PUC’s purchased gas adjustment (PGA) process.

Intermountain Gas asked for and received a $67.6 million rate increase, contending it was the amount of increased revenue needed to cover its higher wholesale gas costs from Williams Northwest Pipeline. Spokane, WA-based Avista is seeking a $15.7 million hike in revenues for the 66,000 natural gas utility customers it serves in Idaho.

“State statutes require that regulated utilities be allowed to recover costs that are prudently incurred,” said the Idaho PUC spokesperson. “Part of the commission’s responsibility is to determine if the company used a reasonable approach in purchasing gas for its customers.”

Noting that wholesale gas prices continue to fluctuate dramatically, Idaho regulators said “the volatile natural gas market has seen forecasts of future costs at record levels, and resulted in increased uncertainty about when and where prices will stabilize.”

The PUC will hold a public workshop on Avista’s PGA gas request Oct. 11; at that time, customers and stakeholders can ask questions of the PUC staff and the utility. Comments are to be filed by Oct. 20, the PUC said — either through e-mail (www.puc.idaho.gov) or U.S. mail (P.O. Box 83720, Boise, ID 83720-0074), or fax (208-334-3762).

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