BOISE, Idaho (KTVB) -- State regulators have approved a rate increase for Idaho's biggest natural gas supplier starting on Oct. 1. Intermountain Gas Co. filed a request for a 4.15 percent rate hike with the Idaho Public Utilities Commission on Aug. 9. It was approved Wednesday.

The increase would generate an estimated $10.3 million for the gas supplier. Company Executive Vice President Scott Madison says more demand is being placed on natural gas reserves nationwide, prompting an increase in prices. Customers using natural gas for space and water heating will see their monthly bills increase by $1.85.

Commercial customers on average will see an increase of about $14 per month -- or 7.2 percent. Intermountain Gas serves about 320,000 residential and commercial customers across southern Idaho