November 25, 2002
(W)
Contact: Audra Sorensen
Office: (801) 324-5065

Questar Gas Requests Rate Decrease

SALT LAKE CITY ¾ Questar Gas today asked the Wyoming Public Service Commission (PSC) to approve an $823,000 decrease in its Wyoming natural gas rates. The decrease is a result of lower natural gas prices and is requested to go into effect Jan. 1, 2003.

If the decrease is approved by the PSC, it will reduce the annual bill for the typical residential customer using 120 decatherms per year from $763.63 to $735.49. This is a decrease of $28.14 per year or about 3.7 percent.

The request was made in the company's semi-annual gas-cost-adjustment or "pass-on" filing. Such filings enable the company to adjust rates twice each year to reflect changes in gas-supply costs.

About half of the natural gas Questar Gas provides customers is purchased from outside suppliers. The rest comes from Questar Gas-owned wells and is delivered to customers at "cost-of-service" pricing, which is considerably lower and more stable than that for gas purchased from outside suppliers. All gas costs are passed directly on to customers, dollar-for-dollar with no mark up. The combination of market and company-owned supplies helps stabilize gas costs.

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