Questar Gas Requests Pass-Through Rate Increase To Cover Rising Gas Costs

SALT LAKE CITY -- Questar Gas today asked the Utah Public Service Commission (PSC) to approve a 5.32 percent increase in its Utah natural gas rates. This change, requested to go into effect July 1, 2002, is due to increases in gas costs.

If approved, the company's request would raise the average monthly bill for the typical residential customer using 115 decatherms per year about $3 per month, increasing the annual bill from about $681.02 to $717.27. The total annual amount of the company's request is $26.6 million.

This request was made in the company's semiannual gas-cost adjustment or "pass-through" filing. Such filings enable the company to adjust rates at least twice each year to reflect changes in gas-supply costs. These costs are passed on dollar-for-dollar with no markup and have no impact on company earnings.

The pass-through increase adjusts for the rising costs of natural gas. However, Questar Gas customers will not feel the full impact of increased natural gas prices because about half of the natural gas Questar supplies customers comes from Questar Gas-owned wells. This gas is delivered to customers at "cost-of-service" pricing, which is considerably lower and more stable than that for gas purchased from outside suppliers.

In a separate filing on May 3, Questar Gas asked the Utah Public Service Commission (PSC) to approve a 5.65 percent increase for the typical residential customer in its general rates effective Jan. 1, 2003. In contrast to pass-through filings which cover gas costs, general-rate filings cover non-gas costs.

If approved, the company's general rate request also would raise the average monthly bill for the typical residential customer using 115 decatherms per year about $3.

If both requests are granted, Utah natural gas rates will still be 20 percent lower than Winter 2000-2001 rates.