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Questar Gas General Rate Case Overview

Questar Gas General Rate Case Overview. Customer Meeting February 28, 2014. Timeline. Hearings on Stipulation and remaining items. Discovery – Company answers over 800 data requests and performs technical conferences. Parties engage in Settlement Discussions. Company applies for rate relief.

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Questar Gas General Rate Case Overview

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  1. Questar GasGeneral Rate Case Overview Customer Meeting February 28, 2014

  2. Timeline Hearings on Stipulation and remaining items Discovery – Company answers over 800 data requests and performs technical conferences Parties engage in Settlement Discussions Company applies for rate relief Intervening parties file rebuttal testimony Parties file Settlement Stipulation Utah PSC issues order effective 3/1/2014

  3. Purpose of a General Rate Case • Revenue Requirement • Cost of Service • Rate Design • Basic Service Fee • Admin Charge • Demand Charge • Volumetric Charges • None of the fees or charges change the amount collected

  4. Guiding Principle • Cost Causation

  5. Settlement Stipulations • First Stipulation • Revenue Requirement • Cost-of-Service • Rate Design • Interruption Policy • FT-1 Qualifying Criteria • Infrastructure Tracker • Basic Service Fees • Interim Studies

  6. Basic Service Fees

  7. Meter Size Basic Service Fees Basic Service Fee Count

  8. Interruptible Testing • Interruption Testing will not be conducted • Instead: • Customer will need to warrant annually that: • They can and will interrupt when called upon to do so by the Company • They have and maintain a backup system capable of providing back-up service during an interruption or are able to fully interrupt when required • They understand and acknowledge the financial and other consequences associated with a failure to interrupt

  9. Interruptible Testing (continued) • Penalty of $40-per-decatherm for all restricted volumes utilized during an interruption • All interruptible volumes utilized during interruption will be moved to a firm rate schedule for three years • Beginning on July 1st following the failure to interrupt

  10. Contracting Period

  11. General Service (GS) Class • Basic Service Fee changes • Typical bill increasing $6.02/yr or 1%

  12. Firm Sales (FS) Class • Basic Service Fee changes • Average bill increasing 1%

  13. Interruptible Sales (IS) Rate • Basic Service Fee changes • Weighted average cost of gas (WACOG) in commodity • Effective in Fall 2014 • Average total bill increase

  14. Firm Transportation 1 (FT-1) • Basic Service Fee changes • Change in qualification criteria

  15. Transportation Service (TS) • Basic Service Fee changes • Average total bill increase

  16. Transportation Service (TS) • Moved 60% to full cost in March 2014 • Will move 72% to full cost in Fall 2015 • Company plans to propose 100% full cost by July 2016

  17. Settlement Stipulations • Second Stipulation • Company withdrew its positions on several issues related to the TS class • “Company will work with customers, upstream pipelines and marketers to better understand potential solutions”

  18. Questions

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