Questar Gas Requests Rate Increase
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Questar Gas Company

180 East 100 South

P.O. Box 45433

Salt Lake City, UT 84145-0433

May 4, 2010

(UT)

Contact: Chad Jones

Office: (801) 324-5495

Questar Gas Requests Rate Increase

SALT LAKE CITY - Questar Gas has asked the Public Service Commission of Utah (PSC) to approve a change in its Utah natural gas rates. If the request is approved, the monthly bill for the typical residential customer will increase by about $1.61 on June 1.

The request is part of a gas-cost-adjustment filing by the company to cover costs of buying natural gas for its customers. These costs are passed on to customers with no markup and therefore no impact on the utility’s profits. The “pass-on” adjustments simply enable the company to change rates to reflect changes in gas-supply costs. Questar Gas typically files “pass-on” adjustments with the PSC twice yearly.

“Questar Gas customers have benefitted from four rate decreases over the last 18 months,” said Ron Jibson, president and CEO of Questar Gas. “These decreases have cut rates by about 20 percent since the summer of 2008. Now, Questar Gas’s rates need to be adjusted 2.93 percent to balance the amount of money we collect from customers with what we need to buy gas for them.

“Our rates are consistently among the lowest in the U.S. and should remain so even after this increase,” Jibson added.

Forecasts are for stable supplies and prices in the near term. However, Jibson cautioned customers that natural gas prices can fluctuate with changes in supply and demand.

“As a percentage of household budgets, the annual natural gas bill for a typical customer in 2010 is still about what it was 15 years ago,” said Jibson. “And even with this increase, the cost to heat a typical Utah home will be about what it was in 2006. But we realize these facts are small comfort to customers facing increases.

“In the meantime, we encourage customers to take steps to save money and energy by reviewing the energy-saving tips and our ThermWise conservation programs on our website, ThermWise.com.”

Another way to cope with higher bills is enrolling in Questar Gas’s Budget Plan, designed to help spread the annual cost of natural gas service evenly throughout the year. Customers can find more information in their June bills.

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