Rate Regulation

The following table details regulatory assets and liabilities:



	December 31, 2015				December 31, 2014
	Current		Noncurrent		Current		Noncurrent
	(in millions)
Regulatory assets:
Questar Gas
Purchased-gas adjustment	$	18.9	$	—	$	39.2	$	—
Energy-efficiency program	1.1		—		—		—
Contract withholding	20.3		—		13.6		—
Deferred cost-of-service gas charges	19.5		8.1		25.5		9.3
Cost of reacquired debt	—		3.8		—		4.3
Pipeline integrity costs	6.3		—		—		7.7
Conservation Enabling Tariff	3.6		—		—		—
Other	0.1		—		—		—
Total Questar Gas regulatory assets	69.8		11.9		78.3		21.3
Questar Pipeline
Gas imbalance	—		—		1.2		—
Revenue sharing	0.2		—		0.1		—
Cost of reacquired debt	—		1.8		—		2.2
Income taxes recoverable from customers	—		—		—		0.3
Other	—		1.2		—		1.2
Total Questar Pipeline regulatory assets	0.2		3.0		1.3		3.7
Total regulatory assets	$	70.0	$	14.9	$	79.6	$	25.0

Regulatory liabilities:
Questar Gas
Energy-efficiency program	—		—		0.3		—
Conservation Enabling Tariff	—		—		12.1		—
Cost of plant removal	3.7		65.5		—		60.7
Income taxes refundable to customers	—		0.1		—		0.2
Other	0.3		—		0.1		—
Total Questar Gas regulatory liabilities	4.0		65.6		12.5		60.9
Questar Pipeline
Gas imbalance	2.3		—		0.8		—
Revenue sharing	0.1		—		0.1		—
Postretirement medical	—		10.0		—		9.0
Total Questar Pipeline regulatory liabilities	2.4		10.0		0.9		9.0
Total regulatory liabilities	$	6.4	$	75.6	$	13.4	$	69.9

Questar Gas and Questar Pipeline record regulatory assets and liabilities. They recover the costs of assets but do not generally receive a return on these assets.

Following is a description of Questar Gas's regulatory assets and liabilities:


-	Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes.


-	The energy-efficiency program relates to funds expended for promoting the conservation of natural gas through advertising, rebates for efficient homes and appliances, and home energy audits. Costs are recovered from customers through periodic rate adjustments. Costs incurred in excess of recoveries result in an asset; recoveries in excess of costs incurred result in a liability.

- Questar Gas recorded a regulatory asset for a disputed amount withheld from a supplier of gathering services. The amount withheld will be recovered from customers if it is determined that Questar Gas is required to pay the supplier.

- Operating and maintenance, depreciation, depletion and amortization, production taxes and royalties on cost-of-service gas production are recorded when the gas is produced and recovered from customers on a delayed basis, generally within 12 months.

Certain cost-of-service gas charges are recovered over a period greater than 12 months. These include a regulatory asset that represents future expenses related to abandonment of Wexpro-operated gas and oil wells. The regulatory asset is reduced over an 18-year period following an amortization schedule that commenced January 1, 2003, or as cash is paid to plug and abandon wells. Noncurrent cost-of-service gas charges also include amounts for production imbalances that will be recovered from customers at the end of the related gas wells' useful lives.


-	Gains and losses on the reacquisition of debt by rate-regulated companies are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 7.2 years as of December 31, 2015.


-	The costs of complying with pipeline-integrity regulations are recovered in rates subject to a PSCU order. Questar Gas is allowed to recover $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes.


-	The CET asset represents actual revenues received that are less than the allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments.

- Cost of plant removal represents asset retirement costs recovered from customers for other than legal obligations.


-	Income taxes refundable to customers arise from adjustments to deferred taxes, refunded over the life of the related property, plant and equipment.

Following is a description of Questar Pipeline's regulatory assets and liabilities:


-	Regulatory assets and liabilities for gas imbalances, fuel over- or under-recovered and sharing interruptible revenues with customers.


-	Gains and losses on the reacquisition of debt are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 6 years as of December 31, 2015.


-	Income taxes recoverable from customers arise from adjustments to deferred taxes, recovered over the life of the related property, plant and equipment.


-	A regulatory liability for the collection of postretirement medical costs allowed in rates in excess of actual charges.

Rate Changes

Questar Gas is authorized to earn a return on equity of 9.85% in Utah and 9.5% in Wyoming. Effective March 1, 2014, Questar Gas increased its rates in Utah by $7.6 million annually as a result of a general rate case filed in Utah in July 2013. The order in this rate case authorized an allowed return on equity of 9.85%. In December 2014, Questar Gas held hearings on a general rate case in Wyoming. At the hearings the PSCW ordered an increase in annualized revenues of $1.5 million and an authorized return on equity of 9.5%. The change in rates was effective March 1, 2015.