Questar Gas seeking $17.2M boost in rates

Questar Gas is asking the Utah Public Service Commission for a $17.2 million increase in its general rates. If approved, the increase would raise the monthly bill for the typical residential customer by about $1 beginning in August 2010.

According to a company news release, this general-rate request covers the costs of system maintenance and expansion. However, it does not include the cost of natural gas that Questar Gas buys for customers. Those costs are passed on to customers without markup, the release stated.

"This request ... is necessary to maintain our system's reliability and safety," Ron Jibson, Questar Gas president and chief executive officer, said. "We now need to invest in our infrastructure, just as Utah has had to invest in major new highway projects and replace bridges."

Over the past five years, Questar Gas has increased its investment in gas distribution facilities by 26 percent. The utility estimates it will need to invest $40 million to $50 million annually over the next five years to replace infrastructure, the release said.