Intermountain Gas customers to pay about 7.1 percent less
Intermountain Gas Company customers received their sixth consecutive decrease in gas rates effective Monday, due to a decline in the cost of gas the company buys for its customers and increased gas supply, the Public Utilities Commission said in a news release.
The decrease will come in two components: a reduction in monthly bills effective Monday as a result of the lower gas prices and a one-time bill credit in December. Combined, those adjustments result in a decrease of 7.1 percent for the average customer, the PUC said.
The yearly Purchased Gas Cost Adjustment projects gas prices for the next twelve months and either surcharges or credits customers the difference between the projection and the actual cost. Sometimes the PGA is adjusted more than once a year if gas prices materially change.
A customer who uses natural gas for just space heating will see a decrease of about 17 cents per month. A commercial customer will see about a $6.46 per month decrease, the PUC stated.
In addition to the $6 million price reduction as result of lower gas prices, a one-time credit totaling $11.9 million will be included on customers’ December bill. For residential customers who use natural gas for both space and water heating, the one-time credit will be about $29.85. Residential customers who use natural gas for space heating only will receive a credit of about $19.40. The average December credit for commercial customers is about $129.80.
The credit will help customers during a time of year when natural gas bills are highest. “Instead of embedding the value of the credit in rates throughout the coming year, the single credit method will allow customers more immediate rate relief during a time period when natural gas usage is typically nearing its peak,” the PUC said.