From Deseret News archives:
Heating bills to subside
Questar requests $38.7 million decrease in rates
On Tuesday, Questar Gas Co. asked state regulators for a $38.7 million decrease in the revenues it collects from customers. That means the average customer's bill will drop by about 4 percent, or $44 a year.
The rate decrease, if approved by the Utah Public Service Commission, will take effect Saturday.
This is Questar's second rate cut this year. On Feb. 1, a decrease went into effect that lowered the average customer's bill by 8 percent, or $104 a year, about $8.67 a month.
Still, this year's decreases fall short of 2005's rate increase, when Questar raised rates 38 percent. Much of that increase was linked to hurricanes that knocked out 20 percent of the U.S. natural gas supply, according to Alan Allred, president and chief executive officer of Salt Lake-based Questar Gas.
"Questar Gas, like other utilities across the country, was forced to increase its rates to cover the cost of buying natural gas at higher prices," Allred said in a statement. "The price of natural gas has fallen over the past three months as Gulf facilities have returned to operation. Also, warmer-than-normal winter weather across the nation reduced consumption."
Betsy Wolf, utility rate analyst with the Salt Lake Community Action Program, which works with low-income households, said the rate reduction is good news for everyone, but particularly for low-income people.
"Low-income households are paying a disproportionately larger percentage of their income toward energy costs than higher-income people," Wolf said. "We need to recognize that energy costs have increased dramatically and had nearly doubled since fall of 2000."
Questar said its rates continue to be among the lowest in the continental United States.
"Customers should be aware that natural gas prices are likely to remain volatile due to factors beyond Questar Gas's control," Allred said. "Natural gas prices are affected by weather and supply interruptions and also tend to move with global oil prices."
E-mail: danderton@desnews.com
