Date: June 8, 2001
(U)
Contact:
Audra Sorensen
Office:  (801) 3245065

QUESTAR RATES TO REMAIN STABLE

SALT LAKE CITY  — The result of Questar Gas's semiannual gascost adjustment or "passthrough" filing today will mean no change to the typical residential customer. If the filing is approved by the Utah Public Service Commission (PSC), the natural gas bill for the typical residential customer using 115 decatherms per year will remain stable at about $75 a month (if customers are on Questar's monthly Equal Payment Plan).

Gascostadjustments or "passthrough" filings enable the company to adjust rates at least twice each year to reflect changes in gassupply costs. Because purchasedgas costs have decreased from the extremely high levels last winter, Questar anticipates customers will be able to rely on stable gas prices for the next six months. As a result of last winter's high prices, Questar Gas's balancing account went nearly $60 million dollars into debt to secure natural gas for customers. Unless there is a dramatic increase in wholesale gas costs, Questar should be able to recover the majority of the $60 million shortfall without increasing prices.

In spite of last winter's high market prices, Questar Gas was able to limit the size of the increase customers paid this past winter. This is because about half the natural gas Questar provides comes from companyowned wells and is delivered to customers at "costofservice" pricing. Last winter, companyowned gas cost 60 percent less than the average price paid for gas purchased from outside suppliers saving customers more than $87 million or about $125 per customer.

Customers can further stabilize their bills by participating in Questar's Equal Payment Plan (EPP).  With EPP, customers' estimated annual natural gas usage is divided into 12 equal payments to help customers budget their monthly bills.

Customers may sign up for EPP anytime during the year, but enrolling during June or July generally results in the lowest monthly payment because the EPP year runs from June to June. More information about EPP will be sent in customer bills during June.

# # #