Intermountain Gas Co. plans to drop its prices by an average of about 5.7 percent effective Oct. 1 in response to a decline in the amount the company pays for natural gas, the company reported Friday.
The company's annual Purchased Gas Cost Adjustments, which must be approved by the Idaho Public Utilities Commission, are designed to ensure fluctuations in the gas company's costs are reflected in the prices it charges customers.
If the proposed adjustment is approved, Intermountain estimates residential customers who use natural gas for space and water heating will see their bills go down an average of $3.`12 per month, while those who use natural gas only for space heating will see an average decrease of $1.36 per month. Commercial customers would see an average decrease of $12.15 per month, according to a compasny news release.
"The decrease in the cost of natural gas is mainly a supply and demand issue, and natural gas supplies remain plentiful," said Scott Madison, executive vice president and general manager of Intermountain. "We continue to see increased domestic natural gas production, and we anticipate prices will remain fairly stable in the coming year."