Related-Party Transaction (Notes)

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related-Party Transactions

Note 15 - Related-Party Transactions

Questar Gas

In 2014 and 2013 Questar Gas provided technical services to affiliates. In 2012, Questar Gas also provided communication services to affiliates. Questar Gas provided these services at its cost and charged $6.1 million in 2014, $6.7 million in 2013 and $13.6 million in 2012. The majority of these costs are allocated. The allocation methods are based on the specific nature of the charges. Management believes that the allocation methods are reasonable.

Questar Gas has reserved transportation capacity on Questar Pipeline's system for 916 Mdth per day during the heating season and 841 Mdth per day during off-peak months. Questar Gas periodically releases excess capacity and receives a credit from Questar Pipeline for the released capacity revenues and a portion of Questar Pipeline's interruptible transportation revenues. Questar Gas paid for transportation, storage and processing services provided by Questar Pipeline and a subsidiary amounting to $72.9 million in 2014, $73.0 million in 2013 and $73.6 million in 2012, which included demand charges. The costs of these services were included in the cost of natural gas sold.

Under the terms of the Wexpro agreements, Questar Gas receives a portion of Wexpro's income from oil and NGL operations after recovery of Wexpro's operating expenses and a return on investment. This amount, which is included in revenues and reduces amounts billed to gas distribution customers, was $0.6 million in 2013 and $2.5 million in 2012. There was no such revenue in 2014. The amounts that Questar Gas paid Wexpro for the operation of cost-of-service gas properties were $349.7 million in 2014, $294.6 million in 2013 and $274.0 million in 2012. Questar Gas reports these amounts in the cost of natural gas sold.

Questar Gas had a lease with an affiliate for space in an office building located in Salt Lake City, Utah, which expired on April 30, 2012. Rent expense was $0.4 million in 2012.

Questar charged Questar Gas for certain administrative functions amounting to $47.8 million in 2014, $48.4 million in 2013 and $49.3 million in 2012. These costs are included in operating expenses and are generally allocated based on each affiliated company's proportional share of revenues less product costs; property, plant and equipment; and labor costs. Management believes that the allocation method is reasonable.

Questar Pipeline charged Questar Gas for communication services amounting to $3.7 million in 2014 and 2013. These costs are included in operating expenses and are allocated based on usage.

Questar Gas borrowed cash from Questar and incurred interest expense of $0.1 million in 2014, $0.5 million in 2013 and $0.6 million in 2012.

Questar Pipeline

Questar Pipeline receives a substantial portion of its revenues from Questar Gas. Total revenues received from Questar Gas were $73.3 million in 2014, $76.3 million in 2013 and $74.0 million in 2012.

Beginning in 2013, Questar Pipeline provided communication services to affiliates. Questar Pipeline provided these services at its cost and charged $5.0 million in 2014 and $4.9 million in 2013. The majority of these costs are allocated based on usage.

In 2014 and 2013 Questar Gas provided technical services to Questar Pipeline. In 2012, Questar Gas also provided communication services to Questar Pipeline. Questar Gas provided these services at its cost of $3.8 million in 2014, $3.5 million in 2013 and $8.8 million in 2012. The majority of these costs are allocated and included in operating expenses. The allocation methods are based on the specific nature of the charges. Management believes that the allocation methods are reasonable.

Questar charged Questar Pipeline for certain administrative functions amounting to $25.8 million in 2014, $28.2 million in 2013 and $24.5 million in 2012. These costs are included in operating expenses and are generally allocated based on each affiliate's proportional share of revenues less product costs; property, plant and equipment; and labor costs. Management believes that the allocation method is reasonable.

Questar Pipeline had a lease with an affiliate for space in an office building located in Salt Lake City, Utah, which expired on April 30, 2012. Rent expense was $0.3 million in 2012.

Questar Pipeline loaned excess funds to Questar and earned interest income of $0.1 million in 2014 and 2012 and $0.2 million in 2013.