Technical Conference on Natural Gas Vehicles

1. Technical Conference on Natural Gas Vehicles Docket No. 08-057-21: In the Matter of the Investigation of Questar Gas Company’s Services Associated with Natural Gas Vehicles Utah Public Service Commission April 23, 2009

2. Utah State Government Public Service Commission

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4. The Public Service Commission • Utah Code Title 54 Chapter 1 establishes the Public Service Commission as an independent agency • The Commission • has legislative, adjudicative, and rule-making powers • is a quasi-judicial agency • The Commissioners • are appointed by the Governor with consent of the Utah Senate • do not report to the Governor • The Commissioners’ decisions are independent • In addition to responding to filings, pleadings, and other responsibilities, the Commission is, from time to time, delegated to perform specific tasks by the Legislature

5. The Public Service Commission • Utah Code Title 54 Chapter 4 establishes the authority of the Commission over public utilities: • e.g., to conduct investigations, to hold hearings, to promulgate rules, to investigate public utility accidents, to fix service standards, to ascertain the value of public utilities, etc. • Utah Code Title 54 is from time to time modified by the Utah Legislature. • e.g., During the 2009 Legislative Session House Bill 392 was passed which added to Title 54 a new Subsection 54-4-13. Natural Gas Vehicle Rate.

6. The Public Service Commission • Utah Code 54-4-4(1)(a) addresses Classification and fixing of rates after hearing as follows: • (1) (a) The commission shall take an action described in Subsection (1)(b), if the commission finds after a hearing that:     (i) the rates, fares, tolls, rentals, charges, or classifications demanded, observed, charged, or collected by any public utility for, or in connection with, any service, product, or commodity, including the rates or fares for excursion or commutation tickets, or that the rules, regulations, practices, or contracts affecting the rates, fares, tolls, rentals, charges, or classifications are:     (A) unjust;     (B) unreasonable;     (C) discriminatory;     (D) preferential; or     (E) otherwise in violation of any provisions of law; or     (ii) the rates, fares, tolls, rentals, charges, or classifications described in Subsection (1)(a)(i) are insufficient.     (b) If the commission makes a finding described in Subsection (1)(a), the commission shall:     (i) determine the just, reasonable, or sufficient rates, fares, tolls, rentals, charges, classifications, rules, regulations, practices, or contracts to be thereafter observed and in force; and     (ii) fix the determination described in Subsection (1)(b)(i) by order as provided in this section.

7. Questar 2007 General Rate Case • Docket No. 07-057-13: In the Matter of the Application of Questar Gas Company to File a General Rate Case to set the Distribution Non-Gas (“DNG”) portion of total rates • Brief History: • Application filed on December 18, 2007 to set new Distribution Non-Gas (“DNG”) rates for the various rate schedules • Phase I Report and Order on Revenue Requirement issued June 27, 2008 • Phase II Report and Order on Cost of Service and Rate Design issued December 22, 2008 • Order Staying and Vacating Portions of December 22, 2008, Report and Order and Granting Review and Rehearing issued February 9, 2009 • Report and Order on Review, Reconsideration, and Rehearingissued February 26, 2009, in which the Commission stated: • “ . . . we will have an opportunity to make a broader analysis of the use of natural gas for NGV’s, including the costs and benefits of such use, in Docket No. 08-057-21 or other, future dockets.” and • “ . . . we now choose to make any further rate changes in the rate case to be filed in 2009 that will review the CET pilot program.”

8. Questar 2007 General Rate Case • Pre-Rate Case NGV DNG rate: $2.55670/Dth • Phase I NGV DNG rate: $2.68963/Dth • Phase II NGV DNG: • $4.96031/Dth until June 30th • $7.36392/Dth beginning July 1 • Order on Reconsideration: $4.96031/Dth until next Questar General Rate Case

9. Docket on Natural Gas Vehicles • Docket No. 08-057-21: In the Matter of the Investigation of Questar Gas Company’s Services Associated with Natural Gas Vehicles • Established on September 11, 2008, with the issuance of a Notice of Technical Conference which was later cancelled. • The purpose of the technical conference was to allow Questar Gas Company to present information regarding Questar services for natural gas fueled vehicles. • A Notice of Technical Conference was issued on March 26, 2009, with the purpose of commencing discussion of regulatory and public policy associated with natural gas vehicles, to discuss the scope of issues to be considered in this docket, and to provide a history of Questar’s NGV rate, NGV fuel consumption history and forecast.