BOISE, Idaho (KTVB) -- Heating your home with natural gas will cost more starting Wednesday. The Idaho Public Utilities Commission has approved Intermountain Gas Company's application to increase rates by 2.64 percent.

Residential customers who use natural gas for space and water heating will see an average increase of $1.89 per month. For space heating only, the average increase will be $1.40. The company requests adjustments each year to reflect changes in its costs for buying natural gas from its suppliers, as well as transportation and storage expenses.

The PUC says nationwide demand for natural gas has increased because of last winter's cold weather in the eastern U.S., a rebounding economy, and increased use of gas for generating electricity.