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Regulatory Update

Regulatory Update. Barrie L McKay September 16, 2014. Questar Gas Company Annual Account Management Customer Meeting. General Rate Case Outcome Summary. Changes to i nterruptible requirements Changes to commodity price for Interruptible Sales customers

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Regulatory Update

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  1. Regulatory Update Barrie L McKay September 16, 2014 Questar Gas Company Annual Account Management Customer Meeting

  2. General Rate Case Outcome Summary • Changes to interruptible requirements • Changes to commodity price for Interruptible Sales customers • Transportation rates move towards full cost-of-service

  3. Changes to Interruptible Requirements • Rate case proposal • Annual testing • Failure to interrupt charge • Rate case resolution • No testing • $40 penalty for each Dth that isn’t interrupted • If customer fails to interrupt then customer will be moved from interruptible rate schedule to a firm schedule for three years for those interruptible volumes it failed to interrupt • Each year interruptible customer will warrant that it has backup equipment and that they understand financial penalties.

  4. Changes to Commodity Rate for Interruptible Sales Customers • Currently first of month market price is used • Effective November 1stQuestar’s weighted average cost of gas will be used • Studying this rate class in future proceedings

  5. Transportation Rates Move Towards Full Cost of Service • Cost to serve TS class in last rate case was $14.7 million annually • Rates designed to collect $12.8 million annually • Fall of 2015 rates will be adjusted to collect $13.3 million annually • Fall 2015 Increases Increase 0 – 200 DTH $0.02955 201 – 2,000 DTH $0.01932 2,001 – 100,000 DTH $0.00790 OVER 100,000 DTH $0.00292 Annual Demand Charge $1.04 In the next general rate case, rates will be designed to collect the full cost of service.

  6. Nominations Storage No Notice Service Factory Agent Nomination Usage Over 5% Variance 87% of time

  7. Questions?

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