December 3, 2002
(UT)
Contact: Audra Sorensen
Office: 324-5065

Questar Gas Requests Rate Decrease

SALT LAKE CITY - Questar today asked the Utah Public Service Commission (PSC) to approve a $6,468,000 decrease in its Utah natural gas rates.

If approved, the annual bill for the typical residential customer using 115 decatherms per year will drop from $681.02 to $673.89. This is a decrease of $7.13 per year or about 1.05 percent. The decrease is expected to be effective Jan. 1, 2003.

Despite national predictions that natural gas prices will be about 22 percent higher this winter, Questar Gas is requesting a decrease because of ample supplies in the Rocky Mountains and Questar Gas's company-owned production.

About half of the natural gas Questar Gas provides customers comes from Questar Gas-owned wells and is delivered to customers at "cost-of-service" pricing. This 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 for Questar Gas customers.

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

Earlier this year, Questar Gas asked the PSC to approve an increase for the typical residential customer in its general rates. In contrast to pass-through filings, which cover gas costs, general-rate filings cover changes in Questar Gas's non-gas costs, including the company's cost of capital.

Questar Gas currently is waiting for the PSC's decision on the general-rate filing. Any rate change, and its percentage, will be announced before the end of the year.

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