Idaho regulators said Tuesday they will accept comments from stakeholders and the general public through Sept. 25 on Intermountain Gas Co.’s request for a $54.3 million purchased gas adjustment (PGA) rate increase. It is part of the Idaho Public Utilities Commission’s (PUC) annual adjustment in rates, effective Oct. 1, to reflect current gas commodity costs for the utility.

When wholesale gas prices are lower than anticipated, customers get a credit; when they are higher than expected, an increase is put in place for the coming 12-month period. Last year Intermountain put in place an 8% PGA decrease; this year costs have exceeded expectations and the utility is seeking an increase of 18%.

In filing with the PUC Aug. 15, Intermountain President Bill Glynn cited worldwide energy demand being at what he call an “all-time high.” That, coupled with “constraints on drilling and production for new supplies, is driving the price of all energy to record highs,” Glynn said.

A PUC spokesperson said the Idaho regulatory commission staff will review the Intermountain purchasing policies to make sure the utility obtained the most reasonable wholesale prices possible, and that it “used other tools, such as hedging and storage, to protect customers as much as possible from market volatility.”

Intermountain told the state regulators it buys natural gas supplies in the summer when they are more readily available to use during the winter months when the prices would be relatively higher. In addition, Intermountain said it has entered into various hedging agreements to lock in the price of significant portions of its underground storage supplies.

Glynn also said the company supports “efforts to increase domestic exploration and production, and reductions in delays to bring production to market. Putting more supplies in the market is one sure way to lower the cost.

“America has vast reserves of natural gas; we just need to get it to market,” he said.

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