-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MVy7BHKRh+HPYJpyIHiSbzmb6JUcDNfZ52yyuRCX59ziH/jf2fYpdBP540p5pkJf ewwY22E685fP/I3iqTx8IA== 0000068589-99-000013.txt : 19991213 0000068589-99-000013.hdr.sgml : 19991213 ACCESSION NUMBER: 0000068589-99-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991208 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUESTAR GAS CO CENTRAL INDEX KEY: 0000068589 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 870407509 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 033-55866 FILM NUMBER: 99772030 BUSINESS ADDRESS: STREET 1: 180 E FIRST SOUTH ST STREET 2: PO BOX 45433 CITY: SALT LAKE CITY STATE: UT ZIP: 84145-0433 BUSINESS PHONE: 8015345555 MAIL ADDRESS: STREET 1: 180 EAST FIRST SOUTH ST STREET 2: P O BOX 11150 CITY: SALT LAKE CITY STATE: UT ZIP: 84147 FORMER COMPANY: FORMER CONFORMED NAME: MOUNTAIN FUEL SUPPLY CO DATE OF NAME CHANGE: 19920703 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20005 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report - December 8, 1999 (Date of earliest event reported) Questar Gas Company (Exact name of registrant as specified in charter) STATE OF UTAH 1-935 87-0407509 (State or other juris- (Commission (I.R.S. Employer diction of incorporation File No.) Identification No.) or organization) 180 East 100 South Street, P.O. Box 45360, Salt Lake City, Utah 84145-0360 (Address of principal executive offices) Registrant's telephone number, including area code (801) 324-5555 FORM 8-K CURRENT REPORT Item 5. Other Events. The Public Service Commission of Utah (PSCU) has denied Questar Gas Company's (Questar Gas or the Company) request to recover in the Company's semiannual pass-through rate filing the cost of removing CO2 from gas processed at a new plant near Price, Utah. Some of the natural gas Questar Gas delivers to its customers must be processed to remove CO2, ensuring a natural gas composition that can operate safely and efficiently in customers' appliances. The required gas processing has been estimated to cost $7.5 to $8.5 million annually. The commission's decision forces the Company to reverse about $1.9 million of pre-tax income in the fourth quarter of 1999, which the Company previously anticipated recovering through its semiannual pass-through rate filings. The Company will also incur an additional $600,000 to $700,000 in monthly operating expenses going forward. In denying the Company's request, the commission provided guidance for the Company to seek recovery of future CO2-removal costs through other rate-making procedures. "We disagree and are extremely disappointed with the commission's decision," said D. N. "Nick" Rose, Questar Gas president and CEO. "We believe the fair way to pay for this processing, which is required for safe natural gas supplies for our customers, is through a pass-through rate proceeding." Unlike Utah, the Public Service Commission of Wyoming (PSCW) staff has recommended immediate cost coverage for Wyoming's share of these costs. According to Rose, the Company will ask for a rehearing. For ongoing costs, the Company will explore other cost-recovery options including filing a general rate case as the PSCU suggested its order. Questar Gas Company is a wholly-owned subsidiary of Questar Corporation (Questar). Questar is a Salt Lake City-based integrated energy resources and services company with $2.2 billion in assets. Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit No. Exhibit 99. Press release issued by Questar Gas Company on December 7, 1999. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. QUESTAR GAS COMPANY (Registrant) December 7, 1999 By /s/D. N. Rose (Date) D. N. Rose President and Chief Executive Officer EX-99 2 News Release Questar Corporation 180 East 100 South P.O Box 45433 Salt Lake City, UT 84145-0433 December 7, 1999 Contact: Chad Jones Office: (801) 324-5495 Utah PSC Denies Questar Gas' Request For Pass-Through Recovery of CO2 Gas-Processing Costs SALT LAKE CITY --The Utah Public Service Commission (PSC) has denied Questar Gas' request to recover in the company's semiannual pass-through rate filing the cost of removing CO2 from gas processed at a new plant near Price, Utah. Some of the natural gas Questar delivers to its customers must be processed to remove CO2, ensuring a natural gas composition that can operate safely and efficiently in customers' appliances. The required gas processing has been estimated to cost $7.5 to $8.5 million annually. The commission's decision forces the company to reverse about $1.9 million of pre-tax income in the fourth quarter of 1999, which the company previously anticipated recovering through its semiannual pass-through rate filings. The company will also incur an additional $600,000 to $700,000 in monthly operating expenses going forward. In denying the company's request, the commission provided guidance for the company to seek recovery of future CO2-removal costs through other rate-making procedures. "We disagree and are extremely disappointed with the commission's decision," said D.N. "Nick" Rose, Questar Gas president and CEO. "We believe the fair way to pay for this processing, which is required for safe natural gas supplies for our customers, is through a pass-through rate proceeding." Unlike Utah, the Wyoming PSC staff has recommended immediate cost coverage for Wyoming's share of these costs. According to Rose, the company will ask for a rehearing. For ongoing costs, the company will explore other cost-recovery options, including filing a general rate case as the PSC suggested in its order. Questar Gas Company is a wholly owned subsidiary of Questar Corp. (NYSE:STR). Questar Corp. is a Salt Lake City-based integrated energy resources and services company with $2.2 billion in assets. ##### -----END PRIVACY-ENHANCED MESSAGE-----