Intermountain Gas Company customers may see their bills rise as the company is proposing a rate increase.
If approved, residential natural gas customers would see an increase in their monthly bills by 4.4%, or $2.19. The average commercial customer would see a 1.5% increase, or $3.43.
The rate hike would amount to $11.3 million annually or an overall increase of 3.2%.
The company says that the infrastructure investments it has made since 2016, which was the last time a general rate increase was requested, is the primary reason behind the increase. The cost of natural gas, which is about 64% of a customer’s monthly bill, is not a factor in the request.
Intermountain Gas Spokesperson Mark Hanson tells BoiseDev that this request is the second general price increase request made by the company over a 37-year span – 1985 to 2022.
“We recognize prices have increased for many day-to-day necessities because of rising inflation since mid-2021; however, a good portion of the infrastructure investments that are part of this regulatory request were made before rising inflation,” said Intermountain Gas CEO Nicole Kivisto in a news release. “We believe the infrastructure investments are prudent to ensure safe and reliable natural gas service to our customers. Current prices do not reflect the cost of providing service to our customers, which is why we are requesting this increase.”
The Idaho Public Utilities Commission has seven months to either approve or deny the request.
In August, Intermountain Gas customers saw their bills increase by about 25%. That was the result of an interim purchased gas cost adjustment, or PGA, because the commodity price for natural gas went up significantly. The company says its earnings did not increase as a result.