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September 17, 2001 (U) Contact: Audra Sorensen Office: (801) 324-5065
Questar Gas Requests Rate Decrease
SALT LAKE CITY Questar Gas today asked the Utah Public Service Commission (PSC) to approve a $111 million decrease in its Utah natural gas rates. This change is requested to go into effect Oct. 1, 2001.
The decrease is the result of lower purchased-gas prices during recent months. Questar purchases about half of the gas it provides customers from outside suppliers. The rest, comes from Questar Gas-owned wells and is delivered to customers at Acost-of-service@ pricing. The company-owned supplies continue to be considerably less expensive and more stable than gas purchased from outside suppliers.
If this request is approved by the PSC, it will decrease the annual bill for the typical residential customer using 115 decatherms per year from $905.02 to $767.02. This is a decrease of $138 per year or about 15 percent.
The decrease request was made in a special-out-of-period gas-cost-adjustment or "pass-through" filing. Such filings enable the company to reduce rates immediately to reflect changes in gas-supply costs.
Last year, in the face of rising prices, the company requested an out-of-period increase. This year with decreasing prices, the company is planning to pass on the lower prices to their customers through this out-of-period filing.
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