INTERMOUNTAIN GAS COMPANY

Transcription

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2 INTERMOUNTAIN GAS COMPANY CASE NO. INT-G APPLICATION, EXHIBITS, AND WORKPAPERS In the Matter of the Application of INTERMOUNTAIN GAS COMPANY For Authority to Change Its Prices on October 1, 2013 (October 1, 2013 Purchased Gas Cost Adjustment Filing)

3 Morgan W. Richards Jr., ISB 1913 Richards Law Office P.O. Box 2076 Boise, Idaho Telephone: (208) Attorney for BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION In the Matter of the Application of INTERMOUNTAIN GAS COMPANY for Authority to Change Its Prices Case No. INT-G APPLICATION ("Intermountain" or Company ), a subsidiary of MDU Resources Group, Inc. with general offices located at 555 South Cole Road, Boise, Idaho, hereby requests authority, pursuant to Idaho Code Sections and , to place into effect October 1, 2013 new rate schedules which will increase its annualized revenues by $10.3 million, pursuant to the Rules of Procedure of the Idaho Public Utilities Commission ( Commission ). Because of changes in Intermountain s gas related costs, as described more fully in this Application, Intermountain s earnings will not increase as a result of the proposed changes in prices and revenues. Intermountain s current rate schedules showing proposed changes are attached hereto as Exhibit No. 1 and are incorporated herein by reference. Intermountain s proposed rate schedules are attached hereto as Exhibit No. 2 and are incorporated herein by reference. Communications in reference to this Application should be addressed to: Michael P. McGrath Director Regulatory Affairs Post Office Box 7608 Boise, ID and Morgan W. Richards Jr. Richards Law Office P.O. Box 2076 Boise, Idaho In support of this Application, Intermountain does allege and state as follows: APPLICATION - 2

4 APPLICATION - 3 I. Intermountain is a gas utility, subject to the jurisdiction of the Idaho Public Utilities Commission, engaged in the sale of and distribution of natural gas within the State of Idaho under authority of Commission Certificate No. 219 issued December 2, 1955, as amended and supplemented by Order No. 6564, dated October 3, Intermountain provides natural gas service to the following Idaho communities and counties and adjoining areas: Ada County - Boise, Eagle, Garden City, Kuna, Meridian, and Star; Bannock County - Chubbuck, Inkom, Lava Hot Springs, McCammon, and Pocatello; Bear Lake County - Georgetown, and Montpelier; Bingham County - Aberdeen, Basalt, Blackfoot, Firth, Fort Hall, Moreland/Riverside, and Shelley; Blaine County - Bellevue, Hailey, Ketchum, and Sun Valley; Bonneville County - Ammon, Idaho Falls, Iona, and Ucon; Canyon County - Caldwell, Greenleaf, Middleton, Nampa, Parma, and Wilder; Caribou County - Bancroft, Conda, Grace, and Soda Springs; Cassia County - Burley, Declo, Malta, and Raft River; Elmore County - Glenns Ferry, Hammett, and Mountain Home; Fremont County - Parker, and St. Anthony; Gem County - Emmett; Gooding County - Gooding, and Wendell; Jefferson County - Lewisville, Menan, Rigby, and Ririe; Jerome County - Jerome; Lincoln County - Shoshone; Madison County - Rexburg, and Sugar City; Minidoka County - Heyburn, Paul, and Rupert; Owyhee County Bruneau, and Homedale; Payette County - Fruitland, New Plymouth, and Payette; Power County - American Falls; Twin Falls County - Buhl, Filer, Hansen, Kimberly, Murtaugh, and Twin Falls; Washington County - Weiser. Intermountain's properties in these locations consist of transmission pipelines, liquefied natural gas storage facilities, distribution mains, services, meters and regulators, and general plant and equipment. II. Intermountain seeks with this Application to pass through to each of its customer classes changes in gas related costs resulting from: 1) an increase in costs billed Intermountain from firm transportation providers including Northwest Pipeline GP ( Northwest or Northwest Pipeline ), 2) an increase in Intermountain s Weighted Average Cost of Gas, or WACOG, 3) an updated customer allocation of gas related costs pursuant to the Company s Purchased Gas Cost Adjustment

5 ( PGA ) provision, 4) the inclusion of temporary surcharges and credits for one year relating to natural gas purchases and interstate transportation costs from Intermountain s deferred gas cost accounts, and 5) benefits resulting from Intermountain s management of its storage and firm capacity rights on various pipeline systems. Intermountain also seeks with this Application to eliminate the temporary surcharges and credits included in its current prices during the past 12 months, pursuant to Case No. INT-G The aforementioned changes would result in an overall price increase to Intermountain s RS-1, RS-2, GS-1 and LV-1 customers and a price decrease to Intermountain s T-3, T-4 and T-5 customers. These price changes are applicable to service rendered under rate schedules affected by and subject to Intermountain's Purchased Gas Cost Adjustment ("PGA"), initially approved by this Commission in Order No , Case No. INT-G-95-1, and additionally approved through subsequent proceedings. Exhibit No. 3 contains pertinent excerpts from applicable pipeline tariffs. Exhibit No. 4 summarizes the price changes in: 1) Intermountain s base rate gas costs, 2) its rate class allocation, and 3) adjusting temporary surcharges or credits flowing through to Intermountain s direct sales customers. Exhibit Nos. 3 and 4 are attached hereto and incorporated herein by reference. III. The current prices of Intermountain are those approved by this Commission in Order No , Case No. INT-G IV. Intermountain s proposed prices incorporate all changes in costs relating to the Company s firm interstate transportation capacity including, but not limited to, any price changes or projected cost adjustments implemented by the Company s pipeline suppliers as well as any volumetric adjustments in contracted transportation agreements which have occurred since Intermountain s PGA filing in Case No. INT-G Northwest Pipeline and its shippers settled Northwest s recent rate case filing resulting in an approximate 9% price increase effective January 1, Case No. INT-G incorporated this increase for a pro-forma nine month period. This PGA includes the annualized impact pertaining to the costs associated with the additional three months. Intermountain continues to effectively manage its natural gas storage assets at Northwest s Jackson Prairie and Questar Pipeline s Clay Basin storage facilities. Supporting documents relating to Line 19 of APPLICATION - 4

6 Exhibit No. 4, include $2.7 million in savings from Intermountain s management of these storage assets. Exhibit No. 4, Lines 1 through 19, details the proposed changes to Intermountain s prices resulting from Intermountain s cost of storage, and interstate and upstream capacity from its various suppliers. V. The WACOG reflected in Intermountain s proposed prices is $ per therm, as shown on Exhibit No. 4, Line 21, Col. (f). This compares to $ per therm currently included in the Company s tariffs. Current deliverable shale gas reserves in North America continue to be significant. However, recent improvements in our nation s economy coupled with an increase in natural gas fired electric generation translate into increased demand on these abundant supplies which, in turn, cause upward pressure on natural gas prices. From a historical perspective, however, robust natural gas supplies combined with significant storage balances have kept natural gas prices significantly lower as compared to just a few years ago. Additionally, the proposed WACOG includes benefits to Intermountain s customers generated by the Company s management of its significant natural gas storage assets. Because gas added to storage is procured during the summer season when prices are typically lower than during the winter, the cost of Intermountain s storage gas is normally less than what could be obtained on the open market in winter months. Additionally, in an effort to further stabilize the prices paid by our customers during the upcoming winter period, Intermountain has entered into various fixed price agreements to lock-in the price for significant portions of its underground storage and other winter flowing supplies. Intermountain believes that the WACOG proposed in this Application, subject to the effect of actual supply and demand and based on current market conditions, provides today s most reasonable forecast of gas costs for the PGA period. Intermountain will employ, in addition to those fixed price agreements already in place, cost effective price arrangements to further secure the price of flowing gas embedded within this Application when, and if, those pricing opportunities materialize in the marketplace. Intermountain believes that timely natural gas price signals enhance its customer s ability to make informed and appropriate energy use decisions. The Company is committed to alert APPLICATION - 5

7 customers to impending price changes before their winter natural gas usage occurs. By employing the use of customer mailings, the Company s website, and various media resources, Intermountain will continue to educate its customers regarding the wise and efficient use of natural gas, billing options available to help manage their energy budget, and pending natural gas price changes. VI. Pursuant to Case No. INT-G-12-01, Intermountain included temporary surcharges and credits in its October 1, 2012 prices for the principal reason of collecting or passing back to its customers deferred gas cost charges and benefits, as outlined in Case No. INT-G Line 26 of Exhibit No. 4 reflects the elimination of these temporary surcharges and credits. VII. Intermountain s PGA tariff includes provisions whereby Intermountain s proposed prices will be adjusted for updated customer class sales volumes and purchased gas cost allocations, pursuant to the Company s approved cost of service methodology. Intermountain s proposed prices include a fixed cost collection adjustment pursuant to these PGA provisions, as outlined on Exhibit No. 5, Line 24. The price impact of this adjustment is included on Exhibit No. 4, Line No. 27. The Fixed Cost Collection Rate resulting from the adjustment plus the annual difference in demand charges from Exhibit No. 4, Lines 1 19, Col. (h) is shown on Exhibit No. 5, Line 28. Exhibit No. 5 is attached hereto and incorporated herein by reference. VIII. Intermountain proposes to pass through to its customers the benefits that will be generated from the management of its transportation capacity totaling $3.9 million as outlined on Exhibit No. 7. These benefits include credits from a segmented release of a portion of Intermountain s firm capacity rights on Northwest Pipeline and other non-segmented capacity releases. Intermountain proposes to pass back these credit amounts via the per therm credits, as detailed on Exhibit No. 7 and included on Exhibit No. 6, Line 1. Exhibit Nos. 6 and 7 are attached hereto and incorporated herein by reference. APPLICATION - 6

8 IX. Intermountain proposes to allocate deferred gas costs from its Account No. 186 balance to its customers through temporary price adjustments to be effective during the 12-month period ending September 30, 2014, as follows: 1) Intermountain has deferred fixed gas costs in its Account No The credit amount shown on Exhibit No. 8, Line 8, Col. (b) of $8.8 million is attributable to a true-up of the collection of interstate pipeline capacity costs, the true-up of expense issues previously ruled on by this Commission, and mitigating capacity release credits generated from the incremental release of Intermountain s pipeline capacity. Intermountain proposes to pass back these balances via the per therm credits, as detailed on Exhibit No. 8 and included on Exhibit No. 6, Line 2. Exhibit No. 8 is attached hereto and incorporated herein by reference. 2) Intermountain has also deferred in its Account No. 186 a variable gas cost debit of $3.1 million, as shown on Exhibit No. 9, Line 2, Col. (b). This deferred debit is attributable to Intermountain s variable gas costs since October 1, Intermountain proposes to collect this balance via a per therm debit, as shown on Exhibit No. 9, Col. (b), Line 4 and included on Exhibit No. 6, Line 3. 3) Finally, Intermountain has deferred in its Account No. 186 deferred gas costs related to Lost and Unaccounted For Gas as shown on Exhibit No. 9, Col. (b), Lines 5 through 20. This deferral results in net per therm decreases to Intermountain s sales customers, as illustrated on Exhibit No. 9, Line 12, Col. (b), and included on Exhibit No. 6, Line 3. The Lost and Unaccounted For Gas deferral also results in a per therm decrease for Intermountain s transportation customers as shown on Exhibit No. 9, Line 20, Col. (b). Exhibit No. 9 is attached hereto and incorporated herein by reference. X. Pursuant to Commission Order No , Case No. INT-G-13-02, Intermountain has deferred in its Account No. 186 variable gas cost credits associated with sales of liquefied natural gas at its Nampa, Idaho facility. Intermountain proposes to pass back this sales credit as outlined on Exhibit No. 10, Line 5. Exhibit No. 10 is attached hereto and incorporated herein by reference. APPLICATION - 7

9 XI. Intermountain has allocated the proposed price changes to each of its customer classes based upon Intermountain s PGA provision. However, a straight cent per therm price increase was not utilized for the LV-1 tariff as no fixed costs are currently recovered in the tail block of the LV-1 tariff. The proposed changes in the WACOG, and variable deferred debits and credits as outlined on Exhibit No. s 9 and 10, are applied to all three blocks of the LV-1 tariff. However, all adjustments relating to fixed costs are applied only to the first two blocks of the LV-1 tariff. XII. Each block of the proposed LV-1, T-3, T-4 and T-5 tariffs include a uniform cents per therm decrease to adjust for Lost and Unaccounted For Gas as detailed on Exhibit No. 9, Lines 13 through 20, Col. (b). The prices, including the proposed adjustment for each block of the T-3, T-4 and T-5 tariffs, and the removal of existing temporary price changes, are outlined on Exhibit No. 1, Page 1, Lines 21 through 32. XIII. Exhibit No. 11 is an analysis of the overall price changes by class of customer. Exhibit No. 11 is attached hereto and incorporated herein by reference. XIV. The proposed overall price changes herein requested among the classes of service of Intermountain reflect a just, fair, and equitable pass-through of changes in gas related costs to Intermountain s customers. XV. This Application is filed pursuant to the applicable statutes and the Rules and Regulations of the Commission. This Application has been brought to the attention of Intermountain s customers through a Customer Notice and by a Press Release sent to daily and weekly newspapers, and major radio and television stations in Intermountain s service area. The Press Release and Customer Notice are attached hereto and incorporated herein by reference. Copies of this Application, its Exhibits, and Workpapers have been provided to those parties regularly intervening in Intermountain s rate proceedings. APPLICATION - 8

10 XVI. Intermountain requests that this matter be handled under modified procedure pursuant to Rules of the Commission s Rules of Procedure. Intermountain stands ready for immediate consideration of this matter. APPLICATION - 9

11 WHEREFORE, Intermountain respectfully petitions the Idaho Public Utilities Commission as follows: a. That the proposed rate schedules herewith submitted as Exhibit No. 2 be approved without suspension and made effective as of October 1, 2013 in the manner shown on Exhibit No. 2. and b. That this Application be heard and acted upon without hearing under modified procedure, c. For such other relief as this Commission may determine proper herein. DATED at Boise, Idaho, this 9th day of August, INTERMOUNTAIN GAS COMPANY Richards Law Office By /s/ Michael P. McGrath By /s/ Morgan W. Richards, Jr. Michael P. McGrath Morgan W. Richards, Jr. Director Regulatory Affairs Attorney for APPLICATION - 10

12 CERTIFICATE OF MAILING I HEREBY CERTIFY that on this 9th day of August, 2013, I served a copy of the foregoing Case No. INT-G upon: Ed Finklea Northwest Industrial Gas Users 326 5th St Lake Oswego, OR Chad Stokes Cable Huston et al SW Fifth Avenue, Suite 2000 Portland, Oregon R. Scott Pasley J. R. Simplot Company PO Box 27 Boise, ID Don Sturtevant J. R. Simplot Company PO Box 27 Boise, ID by depositing true copies thereof in the United States Mail, postage prepaid, in envelopes addressed to said persons at the above addresses. /s/ Michael P. McGrath Michael P. McGrath Director Regulatory Affairs APPLICATION - 11

13 EXHIBIT NO. 1 CASE NO. INT-G INTERMOUNTAIN GAS COMPANY CURRENT TARIFFS Showing Proposed Price Changes (11 pages)

14 Exhibit No. 1 Case No. INT-G Page 1 of 11 COMPARISON OF PROPOSED OCTOBER 1, 2013 PRICES TO OCTOBER 1, 2012 PRICES Line No. Rate Class Prices per INT-G Proposed Adjustment Proposed October 1, 2013 Prices (a) (b) (c) (d) 1 RS-1 2 April - November $ $ $ December - March RS-2 5 April - November December - March GS-1 8 April - November 9 Block Block Block December - March 13 Block Block Block CNG Fuel LV-1 18 Block (1) Block (1) Block (2) T-3 22 Block ( ) (3) Block ( ) (3) Block ( ) (3) T-4 26 Block ( ) (3) Block ( ) (3) Block ( ) (3) T-5 30 Demand Charge Commodity Charge ( ) (3) Over-Run Service ( ) (3) IS-R (4) 34 April - November December - March IS-C (5) 37 April - November 38 Block Block Block December - March 42 Block Block Block (1) See Workpaper No. 7, Line 13, Column (e) (2) See Workpaper No. 7, Line 17, Column (e) (3) Remove INT-G temporary of $ and add the temporary from Exhibit 9, Line 20, Column (b) plus the temporary from Exhibit 10, Line 5, Column (g) - (h) (4) The IS-R price is based on the RS-2 December - March price and receives the same PGA adjustments. (5) The IS-C price is based on the GS-1 December - March price and receives the same PGA adjustments.

15 Exhibit No. 1 Case No. INT-G Page 2 of 11

16 Exhibit No. 1 Case No. INT-G Page 3 of 11

17 Exhibit No. 1 Case No. INT-G Page 4 of 11

18 Exhibit No. 1 Case No. INT-G Page 5 of 11

19 Exhibit No. 1 Case No. INT-G Page 6 of 11

20 Exhibit No. 1 Case No. INT-G Page 7 of 11

21 Exhibit No. 1 Case No. INT-G Page 8 of 11

22 Exhibit No. 1 Case No. INT-G Page 9 of 11

23 Exhibit No. 1 Case No. INT-G Page 10 of 11

24 Exhibit No. 1 Case No. INT-G Page 11 of 11

25 EXHIBIT NO. 2 CASE NO. INT-G INTERMOUNTAIN GAS COMPANY PROPOSED TARIFFS (10 pages)

26 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Forty-Sixth Revised Sheet No. 01 (Page 1 of 1) Name of Utility Rate Schedule RS-1 RESIDENTIAL SERVICE AVAILABILITY: Available to individually metered consumers not otherwise specifically provided for, using natural gas for residential purposes. RATE: Monthly minimum charge is the customer charge. For billing periods ending April through November Customer Charge - $2.50 per bill Commodity Charge - $ per therm* For billing periods ending December through March *Includes: Customer Charge - $6.50 per bill Commodity Charge - $ per therm* Temporary purchased gas cost adjustment of $( ) Weighted average cost of gas of $ PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this rate schedule is a part. Issued by: By: Michael P. McGrath Title: Director Regulatory Affairs Effective: October 1, 2013

27 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Forty-Sixth Revised Sheet No. 02 (Page 1 of 1) Name of Utility Rate Schedule RS-2 MULTIPLE USE RESIDENTIAL SERVICE AVAILABILITY: Available to individually metered consumers using gas for several residential purposes including both water heating and space heating. RATE: Monthly minimum charge is the customer charge. For billing periods ending April through November Customer Charge - $2.50 per bill Commodity Charge - $ per therm* For billing periods ending December through March *Includes: Customer Charge - $6.50 per bill Commodity Charge - $ per therm* Temporary purchased gas cost adjustment of $( ) Weighted average cost of gas of $ PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this rate schedule is a part. Issued by: By: Michael P. McGrath Effective: October 1, 2013 Title: Director Regulatory Affairs

28 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Forty-Eighth Revised Sheet No. 03 ( Page 1 of 2) Name of Utility Rate Schedule GS-1 GENERAL SERVICE AVAILABILITY: Available to individually metered customers whose requirements for natural gas do not exceed 2,000 therms per day, at any point on Company's distribution system. Requirements in excess of 2,000 therms per day may be served under this rate schedule upon execution of a oneyear written service contract. RATE: Monthly minimum charge is the customer charge. For billing periods ending April through November Customer Charge - $2.00 per bill Commodity Charge - First 200 therms per $ * Next 1,800 therms per $ * Over 2,000 therms per $ * For billing periods ending December through March Customer Charge - $9.50 per bill Commodity Charge - First 200 therms per $ * Next 1,800 therms per $ * Over 2,000 therms per $ * *Includes: Temporary purchased gas cost adjustment of $( ) Weighted average cost of gas of $ Issued by: By: Michael P. McGrath Title: Director Regulatory Affairs Effective: October 1, 2013

29 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Forty-Eighth Revised Sheet No. 03 ( Page 2 of 2) Name of Utility Rate Schedule GS-1 GENERAL SERVICE (Continued) For separately metered deliveries of gas utilized solely as Compressed Natural Gas Fuel in vehicular internal combustion engines. Customer Charge - $9.50 per bill Commodity Charge - $ per therm* *Includes: Temporary purchased gas cost adjustment of $( ) Weighted average cost of gas of $ PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. Any GS-1 customer who leaves the GS-1 service will pay to, upon exiting the GS-1 service, all gas and transportation related costs incurred to serve the customer during the GS-1 service period not borne by the customer during the time the customer was using GS-1 service. Any GS-1 customer who leaves the GS-1 service will have refunded to them, upon exiting the GS-1 service, any excess gas commodity or transportation payments made by the customer during the time they were a GS-1 customer. 2. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this rate schedule is a part. Issued by: By: Michael P. McGrath Title: Director Regulatory Affairs Effective: October 1, 2013

30 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Fifty-Sixth Revised Sheet No. 04 ( Page 1 of 2) Name of Utility AVAILABILITY: Rate Schedule LV-1 LARGE VOLUME FIRM SALES SERVICE Available at any mutually agreeable delivery point on the Company's distribution system to any existing customer receiving service under the Company s rate schedule LV-1 or any new customer whose usage does not exceed 500,000 therms annually, upon execution of a one-year minimum written service contract for firm sales service in excess of 200,000 therms per year. MONTHLY RATE: Commodity Charge: First 250,000 therms per $ * Next 500,000 therms per $ * Amount Over 750,000 therms per $ ** The above prices include weighted average cost of gas of $ * Includes temporary purchased gas cost adjustment of $( ) ** Includes temporary purchased gas cost adjustment of $ PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. 2. Any LV-1 customer who exits the LV-1 service at any time (including, but not limited to, the expiration of the contract term) will pay to, upon exiting the LV-1 service, all gas and/or interstate transportation related costs to serve the customer during the LV-1 contract period not borne by the customer during the LV-1 contract period. Any LV-1 customer will have refunded to them, upon exiting the LV-1 service, any excess gas and/or interstate transportation related payments made by the customer during the LV-1 contract period. 3. In the event that total deliveries to any customer within the last three contract periods met or exceeded the 200,000 therm threshold, but the customer during the current contract period used less than the contract minimum of 200,000 therms, an additional amount shall be billed. The additional amount shall be calculated by billing the deficit usage below 200,000 therms at the LV-1 Block 1 rate adjusted for the removal of variable gas costs. The customer s future eligibility for the LV-1 Rate Schedule will be renegotiated with the Company. Issued by: By: Michael P. McGrath Effective: October 1, 2013 Title: Director Regulatory Affairs

31 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Eighth Revised Sheet No. 11 ( Page 1 of 2) Name of Utility Rate Schedule T-3 INTERRUPTIBLE DISTRIBUTION TRANSPORTATION SERVICE AVAILABILITY: Available at any point on the Company's distribution system to any customer upon execution of a one year minimum written service contract. MONTHLY RATE: Block One: First 100,000 therms $ * Block Two: Next 50,000 therms $ * Block Three: Amount over 150,000 therms $ * *Includes temporary purchased gas cost adjustment of $( ) ANNUAL MINIMUM BILL: The customer shall be subject to the payment of an annual minimum bill of $30,000 during each annual contract period, unless a higher minimum is required under the service contract to cover special conditions. PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. The Company, in its sole discretion, shall determine whether or not it has adequate capacity to accommodate transportation of the customer's gas supply on the Company's distribution system. 2. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. 3. Interruptible Distribution Transportation Service may be made firm by a written agreement between the parties if the customer has a dedicated line. 4. If requested by the Company, the customer expressly agrees to interrupt its operations during periods of capacity constraints on the distribution system. 5. This service does not include the cost of the customer's gas supply or the interstate pipeline capacity. The customer is responsible for procuring its own supply of natural gas and transportation to Intermountain's distribution system under this rate. 6. The customer understands and agrees that the Company is not responsible to deliver gas supplies to the customer which have not been nominated and accepted for delivery by the interstate pipeline. 7. An existing LV-1, T-4, or T-5 customer electing this schedule may concurrently utilize Rate Schedule T-3 on the same or contiguous property. Issued by: By: Michael P. McGrath Effective: October 1, 2013 Title: Director Regulatory Affairs

32 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Seventh Revised Sheet No. 13 ( Page 1 of 2) Name of Utility AVAILABILITY: Rate Schedule T-4 FIRM DISTRIBUTION ONLY TRANSPORTATION SERVICE Available at any mutually agreeable delivery point on the Company's distribution system to any customer upon execution of a one year minimum written service contract for firm distribution transportation service in excess of 200,000 therms per year. MONTHLY RATE: Commodity Charge: Block One: First 250,000 therms $ * Block Two: Next 500,000 therms $ * Block Three: Amount over 750,000 therms $ * *Includes temporary purchased gas cost adjustment of $( ) PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. This service excludes the service and cost of firm interstate pipeline charges. 2. The customer is responsible for procuring its own supply of natural gas and interstate transportation under this Rate Schedule. The customer understands and agrees that the Company is not responsible to deliver gas supplies to the customer which have not been nominated, scheduled, and delivered by the interstate pipeline to the designated city gate. 3. All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this Rate Schedule is a part. 4. The customer shall nominate a Maximum Daily Firm Quantity (MDFQ), which will be stated in the contract and in effect throughout the term of the service contract. 5. An existing LV-1, T-3, or T-5 customer electing this schedule may concurrently utilize Rate Schedule T-4 on the customer s same or contiguous property. BILLING ADJUSTMENTS: 1. In the event that total deliveries to any customer within the last three contract periods met or exceeded the 200,000 therm threshold, but the customer during the current contract period used less than the contract minimum of 200,000 therms, an additional amount shall be billed. The additional amount shall be calculated by billing the deficit usage below 200,000 therms at the T-4 Block 1 rate. The customer's future eligibility for the T-4 Rate Schedule will be renegotiated with the Company. Issued by: By: Michael P. McGrath Effective: October 1, 2013 Title: Director Regulatory Affairs

33 I.P.U.C. Gas Tariff Second Revised Volume No. 1 (Supersedes First Revised Volume No. 1) Sixth Revised Sheet No. 14 (Page 1 of 2) Name of Utility AVAILABILITY: Rate Schedule T-5 FIRM DISTRIBUTION SERVICE WITH MAXIMUM DAILY DEMANDS Available at any mutually agreeable delivery point on the Company s distribution system to any existing T-5 customer whose daily contract demand on any given day meets or exceeds a predetermined level agreed to by the customer and the Company upon execution of a one-year minimum written service contract for firm distribution service in excess of 200,000 therms per year. MONTHLY RATE: Firm Service Rate Per Therm Demand Charge: Firm Daily Demand - $ Commodity Charge: For Firm Therms Transported $ * Over-Run Service Commodity Charge: For Therms Transported In Excess Of MDFQ: $ * *Includes temporary purchased gas cost adjustment of $( ) PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1 All natural gas service hereunder is subject to the General Service Provisions of the Company s Tariff, of which this Rate Schedule is a part. 2. The customer shall nominate a Maximum Daily Firm Quantity (MDFQ), which will be stated in and will be in effect throughout the term of the service contract. 3. The monthly Demand Charge will be equal to the MDFQ times the Firm Daily Demand rate. Firm demand relief will be afforded to those T-5 customers paying both demand and commodity charges for gas when, in the Company s judgment, such relief is warranted. 4. The actual therm usage for the month or the MDFQ times the number of days in the billing month, whichever is less, will be billed at the applicable commodity charge for firm therms. Issued by: By: Michael P. McGrath Effective: October 1, 2013 Title: Director Regulatory Affairs

34 I.P.U.C. Gas Tariff Fifth Revised Sheet No. 16 (Page 1 of 2) Name of Utility APPLICABILITY: Rate Schedule IS-R RESIDENTIAL INTERRUPTIBLE SNOWMELT SERVICE Applicable to any new residential or Customer using natural gas to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule IS-R and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set and other related facility and equipment costs, prior to the installation of the meter set. Any request to alter the physical location of the meter set and related facilities from Company s initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. For billing periods ending April through November Customer Charge - $2.50 per bill Commodity Charge - $ per therm* For billing periods ending December through March *Includes: Customer Charge - $6.50 per bill Commodity Charge - $ per therm* Temporary purchased gas cost adjustment of $( ) Weighted average cost of gas of $ PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. SERVICE CONDITIONS: 1. All natural gas service hereunder is subject to the General Service Provisions of the Company's Tariff, of which this Rate Schedule is a part. Issued by: By: Michael P. McGrath Effective: October 1, 2013 Title: Director Regulatory Affairs

35 I.P.U.C. Gas Tariff Fifth Revised Sheet No. 17 (Page 1 of 2) Name of Utility APPLICABILITY: Rate Schedule IS-C SMALL COMMERICAL INTERRUPTIBLE SNOWMELT SERVICE Applicable to any new Customer otherwise eligible to receive gas service under Rate Schedule GS-1 and using natural gas to melt snow and/or ice on sidewalks, driveways or any other similar appurtenances. Any and all such applications meeting the above criteria will be subject to service under Rate Schedule IS-C and will be separately and individually metered. All service hereunder is interruptible at the sole discretion of the Company. FACILITY REIMBURSEMENT CHARGE: All new interruptible Snowmelt service customers are required to pay for the cost of the Snowmelt meter set and other related facility and equipment costs, prior to the installation of the meter set. Any request to alter the physical location of the meter set and related facilities from Company s initial design may be granted provided, however, the Company can reasonably accommodate said relocation and Customer agrees to pay all related costs. RATE: Monthly minimum charge is the Customer Charge. For billing periods ending April through November Customer Charge $2.00 per bill Commodity Charge First 200 therms per $ * Next 1,800 therms per $ * Over 2,000 therms per $ * For billing periods ending December through March *Includes: Customer Charge $9.50 per bill Commodity Charge First 200 therms per $ * Next 1,800 therms per $ * Over 2,000 therms per $ * Temporary purchased gas cost adjustment of $( ) Weighted average cost of gas of $ PURCHASED GAS COST ADJUSTMENT: This tariff is subject to an adjustment for cost of purchased gas as provided for in the Company's Purchased Gas Cost Adjustment Provision. Issued by: By: Michael P. McGrath Effective: October 1, 2013 Title: Director Regulatory Affairs

36 EXHIBIT NO. 3 CASE NO. INT-G INTERMOUNTAIN GAS COMPANY PERTINENT EXCERPTS FROM INTERSTATE PIPELINES AND RELATED FACILITIES (13 pages)

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50 EXHIBIT NOS CASE NO. INT-G INTERMOUNTAIN GAS COMPANY (8 pages)

51 INTERMOUNTAIN GAS COMPANY Summary of Gas Cost Changes Annual Therms/ 10/1/2012 Total Annual Annual Therms/ 10/1/2013 Total Annual Cost of Service Allocation of Gas Cost Adjustment (1) Line Billing Determinants Prices Cost Billing Determinants Prices Cost Annual No. Description INT-G INT-G INT-G INT-G INT-G INT-G Difference RS-1 RS-2 GS-1 LV-1 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) 1 DEMAND CHARGES: 2 Transportation: 3 NWP TF-1 Demand 1 (Full Rate) (2) 886,804,000 $ $ 36,374, ,894,600 $ $ 38,304,747 $ 1,930,447 $ 230,509 $ 1,056,292 $ 629,268 $ 14,378 4 NWP TF-1 Demand 1 (Discounted) (3) 171,206, ,434, ,404, ,694, ,817 31, ,165 84,693 1,935 5 Upstream Capacity (4) 1,201,426, ,300,997 1,251,230, ,493, ,410 22, ,282 62,720 1,433 6 Storage: 7 SGS-1 8 Demand 303,370 (5) ,542 9 Capacity Demand 10,920,990 (5) ,206 (6) (6) 303,370 10,920, TF-2 Reservation 10,920,990 (5) ,173 10,920, TF-2 Redelivery Charge 10,920,990 (5) ,763 10,920, LS 13 Demand 1,132,000 (5) ,261, Capacity 10,962,350 (5) ,560,491 (6) (6) 1,132,000 10,962, Liquefaction 10,962,350 (5) ,796 10,962, Vaporization 10,962,350 (5) ,665 10,962, TF-2 Reservation 10,962,350 (5) ,844 10,962, TF-2 Redelivery Charge 10,962,350 (5) ,887 10,962,350 (5) (5) (5) (5) (5) (5) (5) (5) (5) (5) , ,211 (6) (6) , ,753 8,580 1,025 4,694 2, , ,068, ,324, Other Storage Facilities 328, COMMODITY CHARGES: (6) (6) (192,955) (23,040) (105,580) (62,898) (1,437) (236,074) (28,189) (129,174) (76,953) (1,758) , ,188 35, ,425 95,570 2, ,119 (421,546) (50,336) (230,659) (137,411) (3,140) ,456 8,612 1,028 4,713 2, , (7) 39, , ,169 2, Total Producer/Supplier Purchases Including Storage 326,518, ,347, ,518, ,925,412 12,577,507 1,337,987 7,048,610 4,051, , TOTAL ANNUAL COST DIFFERENCE $ 14,750,181 $ 1,597,420 $ 8,237,442 $ 4,759,816 $ 155, Normalized Sales Volumes (1/1/12-12/31/12) 34,734, ,985, ,181,427 3,616, Average Base Rate Change $ $ $ $ Other Permanent Changes Proposed: 26 Elimination of Temporary Credits and Surcharges from Case No. INT-G Adjustment to Fixed Cost Collection Rate (see Exhibit 5, Line 24) ( ) ( ) ( ) Total Permanent Changes Proposed (Lines 24 through 27): Temporary Surcharge (Credit) Proposed (Exhibit No. 6, Line 5, Cols (b)-(e)) ( ) ( ) ( ) ( ) 30 Proposed Average Per Therm Change in Tariff $ $ $ $ (1) See Workpaper No. 5, Line 8 (2) See Workpaper No. 1 (3) See Workpaper No. 2 (4) See Workpaper No. 3 (5) Represents Non-Additive Demand Charge Determinants (6) Price Reflects Daily Charge; Annual Charge (Column (d) &(g)) equals Price (Column (c) & (f)) times Annual Therms/Billing Determinants (Column (b) & (e)) times 365. Actual Prices include 6 decimals. (7) See Workpaper No. 4, Line 33, Column (e)

52 INTERMOUNTAIN GAS COMPANY Summary of Fixed Gas Cost Charges Annual Therms/ 10/1/2012 Annual Cost of Service Allocation of Gas Cost Adjustment (1) Line Billing Determinants Prices Cost No. Description INT-G INT-G INT-G RS-1 RS-2 GS-1 LV-1 (a) (b) (c) (d) (e) (f) (g) (h) 1 DEMAND CHARGES: 2 Transportation: 3 NWP TF-1 Demand 1 (Full Rate) 886,804,000 $ $ 36,374,300 $ 4,343,346 $ 19,903,107 $ 11,856,931 $ 270,916 4 NWP TF-1 Demand 1 (Discounted) 171,206, ,434, ,144 1,879,458 1,119,654 25,583 5 Upstream Capacity 1,201,426, ,300,997 1,946,453 8,919,498 5,313, ,410 6 Storage: 7 SGS-1 8 Demand 303, ,542 (2) 20,603 94,410 56,244 1,285 9 Capacity Demand 10,920, ,206 (2) 27, ,774 73,736 1, TF-2 Reservation 10,920, ,173 52, , ,157 3, TF-2 Redelivery Charge 10,920, ,763 3,912 17,927 10, LS-1 13 Demand 1,132, ,261,852 (2) 150, , ,326 9, Capacity 10,962, ,560,491 (2) 186, , ,673 11, Liquefaction 10,962, ,796 83, , ,090 5, Vaporization 10,962, ,665 54, , ,511 3, TF-2 Reservation 10,962, ,844 52, , ,702 3, TF-2 Redelivery Charge 10,962, ,887 3,927 17,995 10, Other Storage Facilities 3,241, ,065 1,773,703 1,056,653 24, Total Fixed Gas Cost Charges $ 64,679,919 $ 7,723,236 $ 35,391,234 $ 21,083,713 $ 481, Normalized Sales Volumes (INT-G Estimated Volumes) 35,520, ,665, ,835,373 4,492, Fixed Cost Collection per Therm (Line 20 divided by Line 21) $ $ $ $ Current Fixed Cost Collection per Therm $ $ $ $ Adjustment to Fixed Cost Collection (Line 22 minus Line 23) $ ( ) $ ( ) $ ( ) $ FIXED COST COLLECTION RATE CALCULATION: 26 Adjusted Fixed Cost Collection Per Therm (Line 22) $ $ $ $ Incremental Fixed Cost Collection (3) INT-G Fixed Costs Collected $ $ $ $ (1) See Workpaper No. 5, Line 8 (2 ) Price Reflects Daily Charge; Annual Charge (Column (d)) equals Price (Column (c)) times Annual Therms (Column (b)) times 365. (3) See Exhibit 4, Lines 1-19 Exhibit No. 5 Case No. INT-G Page 1 of 1

53 INTERMOUNTAIN GAS COMPANY Summary of Proposed Temporary Surcharges (Credits) Cost of Service Allocation of Deferred Gas Costs Line No. Description RS-1 RS-2 GS-1 LV-1 (a) (b) (c) (d) (e) 1 Management of Pipeline Transportation Capacity (1) $ ( ) $ ( ) $ ( ) $ ( ) 2 Proposed Temporary Surcharge (Credit) - Fixed Deferral (2) ( ) ( ) ( ) ( ) 3 Proposed Temporary Surcharge (Credit) - Variable Deferral (3) (3) (3) (4) 4 LNG Sales Credits (5) ( ) ( ) ( ) ( ) 5 Total Proposed Temporary Surcharges (Credits) $ ( ) $ ( ) $ ( ) $ ( ) (1) See Exhibit No. 7, Line 5, Columns (c) - (f) (2) See Exhibit No. 8, Line 10, Columns (c) - (f) (3) See Exhibit No. 9; Line 4, Column (b) plus Line 12, Column (b) (4) See Exhibit No. 9; Line 4, Column (b) plus Line 20, Column (b) (5) See Exhibit No. 10, Line 5, Columns (c) - (f) Exhibit No. 6 Case No. INT-G Page 1 of 1

54 INTERMOUNTAIN GAS COMPANY Allocation of Annualized Credits Resulting from Management of Pipeline Transportation Capacity Cost of Service Allocation of Deferred Gas Costs (1) Line No. Description Total RS-1 RS-2 GS-1 LV-1 (a) (b) (c) (d) (e) (f) 1 Long Term Northwest Pipeline Capacity Releases $ (3,136,165) $ (374,480) $ (1,716,031) $ (1,022,296) $ (23,358) 2 Upstream Pipeline Capacity Releases (750,000) (89,555) (410,381) (244,478) (5,586) 3 Total Management of Pipeline Transportation Capacity $ (3,886,165) $ (464,035) $ (2,126,412) $ (1,266,774) $ (28,944) 4 Normalized Sales Volumes (1/1/12-12/31/12) 34,734, ,985, ,181,427 3,616,848 5 Proposed Price Adjustment Per Therm $ ( ) $ ( ) $ ( ) $ ( ) (1) See Workpaper No. 5, Line 8 Exhibit No. 7 Case No. INT-G Page 1 of 1

55 INTERMOUNTAIN GAS COMPANY Proposed Temporary Surcharges (Credits) - Fixed Costs Deferred Account 1860 Estimated Cost of Service Allocation of Deferred Gas Costs (2) Line Sept. 30, 2013 No. Description Balance (1) RS-1 RS-2 GS-1 LV-1 (a) (b) (c) (d) (e) (f) 1 Fixed Costs: 2 From INT-G (Accounts ) $ (97,888) $ (5,762) $ 53,974 $ (161,535) $ 15,435 3 Fixed Cost Collection Adjustment (Accounts ) 2,308,483 14, ,306 1,659,567 (39,522) 4 Capacity Releases & Purchases (Account ) (9,985,247) (1,192,308) (5,463,678) (3,254,891) (74,370) 5 Interest (Account ) (1,590) (190) (870) (518) (12) 6 Management of Pipeline Transportation Capacity (Account ) (4,736,699) (569,877) (2,597,018) (1,549,460) (20,344) 7 Amortization of (Accounts ) 3,699, ,292 2,090,177 1,142,988 19,130 8 Total Fixed Costs $ (8,813,354) $ (1,306,713) $ (5,243,109) $ (2,163,849) $ (99,683) 9 Normalized Sales Volumes (1/1/12-12/31/12) 34,734, ,985, ,181,427 3,616, Proposed Temporary Surcharge (Credit)-Fixed Costs $ ( ) $ ( ) $ ( ) $ ( ) (1) See Workpaper No. 6, Page 1, Lines and Page 2, Lines 1-35 (2) See Workpaper No. 5, Line 8 Exhibit No. 8 Case No. INT-G Page 1 of 1

56 Exhibit No. 9 Case No. INT-G Page 1 of 1 INTERMOUNTAIN GAS COMPANY Proposed Temporary Surcharges (Credits) - Variable Costs Line No. Description Amount (a) (b) 1 Account 1860 Variable Amounts Which Apply to RS-1, RS-2, GS-1, and LV-1: 2 Account 1860 Variable Costs $ 3,103,433 3 Normalized Sales Volumes (1/1/12-12/31/12) 326,518,873 4 Proposed Temporary Surcharge (Credit) - Variable Costs $ (1) 5 Lost and Unaccounted For Gas Amounts Which Apply to RS-1, RS-2, and GS-1: 6 Lost and Unaccounted For Gas Amounts from INT-G (Account ) $ 1,603,665 7 Lost and Unaccounted For Gas Amortization (Account ) (1,542,253) (3) 8 (Over)/Under Collection of Lost and Unaccounted For Gas from INT-G ,412 9 Lost and Unaccounted For Gas INT-G (217,686) (4) 10 Total Lost and Unaccounted For Gas Amounts Which Apply to RS-1, RS-2, and GS-1 $ (156,274) 11 Normalized Sales Volumes (1/1/12-12/31/12) 322,902, Proposed Temporary Surcharge (Credit) - Lost and Unaccounted For Gas Costs $ ( ) (2) 13 Lost and Unaccounted For Gas Amounts Which Apply to LV-1, T-3, T-4, and T-5: 14 Lost and Unaccounted For Gas Amounts from INT-G (Account ) $ 534, Lost and Unaccounted For Gas Amortization (Account ) (749,998) (6) 16 (Over)/Under Collection of Lost and Unaccounted For Gas from INT-G (215,443) 17 Lost and Unaccounted For Gas INT-G (72,599) (7) 18 Total Lost and Unaccounted For Gas Amounts Which Apply to LV-1, T-3, T-4 and T-5 $ (288,042) 19 Normalized Sales Volumes (1/1/12-12/31/12) 284,589, Proposed Temporary Surcharge (Credit) - Lost and Unaccounted For Gas Costs $ ( ) (5) (1) (2) (3) (4) (5) (6) (7) See Workpaper No. 6, Page 1: Line 7, Column (e); Line 11, Column (e); Line 12 Column (e) & Line 17, Column (e) See Workpaper No. 6, Page 1, Line 20, Column (c) See Workpaper No. 6, Page 1, Line 26, Column (d) See Workpaper No. 6, Page 1, Line 41, Column (d) plus Line 47, Column (e) See Workpaper No. 6, Page 1, Line 21, Column (c) See Workpaper No. 6, Page 1, Line 30, Column (d) See Workpaper No. 6, Page 1, Line 42, Column (d) plus Line 51, Column (e)

57 INTERMOUNTAIN GAS COMPANY Allocation of LNG Sales Credits Line Cost of Service Allocation of Deferred Gas Costs (1) No. Description Total RS-1 RS-2 GS-1 LV-1 T-4 T-5 (a) (b) (c) (d) (e) (f) (g) (h) 1 O&M Recovery Credit (2) $ (985) $ (87) $ (401) $ (238) $ (5) $ (249) $ (5) 2 Margin Sharing (3) (4,545) (403) (1,848) (1,100) (25) (1,148) (21) 3 Total LNG Sales Credits $ (5,530) $ (490) $ (2,249) $ (1,338) $ (30) $ (1,397) $ (26) 4 Normalized Sales Volumes (1/1/12-12/31/12) 34,734, ,985, ,181,427 3,616, ,607,993 19,633,657 5 Proposed Price Adjustment Per Therm $ ( ) $ ( ) $ ( ) $ ( ) $ ( ) $ - (1) See Workpaper No. 9, Line 5 (2) See Workpaper No. 6, Page 2 of 2, Line 37, Column (d) (3) See Workpaper No. 6, Page 2 of 2, Line 38, Column (d) Exhibit No. 10 Case No. INT-G Page 1 of 1

58 INTERMOUNTAIN GAS COMPANY Analysis of Annualized Price Change by Class of Service Normalized Volumes for Twelve Months Ended December 31, 2012 Average Prices Effective Proposed per Case No. INT-G Adjustments Effective Proposed Average Prices Commission Order No /1/2013 Effective 10/1/2013 Line Annual Percent No. Description Therms/CD Vols. Revenue $/Therm Revenue $/Therm Revenue $/Therm Change (a) (b) (c) (d) (e) (f) (g) (h) (i) 1 Gas Sales: 2 RS-1 Residential 34,734,859 $ 29,900,809 $ $ 561,315 $ $ 30,462,124 $ % 3 RS-2 Residential 182,985, ,631, ,282, ,914, % 4 GS-1 General Service 105,181,427 71,672, ,202, ,875, % 5 LV-1 Large Volume 3,616,848 1,643, , ,889, % 6 Total Gas Sales 326,518, ,848, ,292, ,141, % 7 T-3 Transportation 114,731,099 2,337, (413,032) ( ) 1,924, % 8 T-4 Transportation 146,607,993 6,694, (529,255) ( ) 6,164, % 9 T-5 Transportation (Demand) 660, , , % 10 T-5 Transportation (Commodity) 19,633,657 99, (70,681) ( ) 28, % 11 Total T-5 (1) 19,633, , (70,681) ( ) 585, % 12 Total Transportation 280,972,749 9,687, (1,012,968) ( ) 8,674, % 13 Total 607,491,622 $ 247,536,019 $ $ 10,279,255 $ $ 257,815,274 $ % (1) Demand volumes removed from the $/therm calculations Exhibit No. 11 Case No. INT-G Page 1 of 1

59 NEWS RELEASE and CUSTOMER NOTICE CASE NO. INT-G INTERMOUNTAIN GAS COMPANY (2 Pages)

60 NEWS RELEASE 555 S. Cole Rd. Boise, ID (208) files to Increase Prices BOISE, IDAHO August 9, filed its annual Purchased Gas Cost Adjustment (PGA) application with the Idaho Public Utilities Commission to change prices by an overall average increase of 4.15%, or $10.3 million, and if approved, would be effective October 1, The main reason for the filing is an increase in the price of natural gas that Intermountain purchases for its customers. The cost to move natural gas through the interstate pipelines to the Intermountain system has also increased. Intermountain s earnings will not increase as a result of the proposed change in prices and revenues. If approved, residential customers using gas for space and water heating will see an average increase of 3.92%, or $1.85 per month. Customers using natural gas for space heating only will see an average increase of $0.68 per month, or 1.88%, based on average weather and usage. Commercial customers, on average, would see an increase of $14.18 per month or 7.26%. The company is also proposing to eliminate the temporary credits that have been included in its current prices during the past year. Newer temporary credits will be included going forward. Even with this requested increase, the aforementioned gas-cost portion of Intermountain s prices will be 49% lower than in Scott Madison, Executive Vice President and General Manager of Intermountain said, The United States economy is slowly recovering, and with this recovery, we are seeing more demand placed on our substantial North American natural gas reserves. Increasing natural-gas-fueled electrical generation is also placing additional demand on supplies and delivery capacity. While this increased demand is causing some upward price movement, overall natural gas prices remain much lower than they were just a few years ago. The continued development of shale gas production in North America is expected to keep pace with increasing demand, maintaining overall price stability. Intermountain continues to urge all its customers to use energy wisely. Conservation tips, information on government payment energy assistance, and programs to help customers level out their energy bills over the year can be found on the company s website, A Purchased Gas Cost Adjustment application is filed each year to ensure the costs Intermountain incurs on behalf of its customers are reflected in its sales prices. The request is subject to public review and approval by the Idaho Public Utilities Commission. A copy of the application is available at the Commission offices and on both the Commission s and Intermountain s websites. is a natural gas distribution company serving approximately 320,000 residential, commercial and industrial customers in 74 communities in southern Idaho. Intermountain is a subsidiary of MDU Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as MDU. For more information about MDU Resources, visit the company s website at For more information about Intermountain, visit ********** Media Contact: Byron Defenbach at (208)

61 Customer Notice files to Increase Prices On August 9, filed its annual Purchased Gas Cost Adjustment (PGA) application with the Idaho Public Utilities Commission to change prices by an overall average increase of 4.15%, or $10.3 million, and if approved, would be effective October 1, The main reason for the filing is an increase in the price of natural gas that Intermountain purchases for its customers. The cost to move natural gas through the interstate pipelines to the Intermountain system has also increased. Intermountain s earnings will not increase as a result of the proposed change in prices and revenues. If approved, residential customers using gas for space and water heating will see an average increase of 3.92%, or $1.85 per month. Customers using natural gas for space heating only will see an average increase of $0.68 per month, or 1.88%, based on average weather and usage. Commercial customers, on average, would see an increase of $14.18 per month or 7.26%. The company is also proposing to eliminate the temporary credits that have been included in its current prices during the past year. Newer temporary credits will be included going forward. Even with this requested increase, the aforementioned gas-cost portion of Intermountain s prices will be 49% lower than in Scott Madison, Executive Vice President and General Manager of Intermountain said, The United States economy is slowly recovering, and with this recovery, we are seeing more demand placed on our substantial North American natural gas reserves. Increasing natural-gas-fueled electrical generation is also placing additional demand on supplies and delivery capacity. While this increased demand is causing some upward price movement, overall natural gas prices remain much lower than they were just a few years ago. The continued development of shale gas production in North America is expected to keep pace with increasing demand, maintaining overall price stability. Intermountain continues to urge all its customers to use energy wisely. Conservation tips, information on government payment energy assistance, and programs to help customers level out their energy bills over the year can be found on the company s website, A Purchased Gas Cost Adjustment application is filed each year to ensure the costs Intermountain incurs on behalf of its customers are reflected in its sales prices. The request is subject to public review and approval by the Idaho Public Utilities Commission. A copy of the application is available at the Commission offices and on both the Commission s and Intermountain s websites. is a natural gas distribution company serving approximately 320,000 residential, commercial and industrial customers in 74 communities in southern Idaho. Intermountain is a subsidiary of MDU Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as MDU. For more information about MDU Resources, visit the company s website at For more information about Intermountain, visit