Note 13. Related-Party Transactions

Questar Gas engages in related-party transactions primarily with affiliates Wexpro, for cost-of-service natural gas supply, and Dominion Energy Questar Pipeline, for transportation and storage services. Questar Gas’ receivables and payables balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. A discussion of significant related-party transactions follows.

DES and other affiliates provide accounting, legal, finance and certain administrative and technical services to Questar Gas. These costs are included in other operations and maintenance in the Statements of Income on the basis of direct and allocated methods in accordance with Questar Gas’ services agreements. Where costs incurred cannot be determined by specific identification, the costs are generally allocated based on each affiliated company’s proportional share of revenues less product costs; property, plant and equipment; and labor costs for costs from Dominion Energy Questar and based on the proportional level of effort devoted by resources that is attributable to Questar Gas, determined by reference to number of employees, salaries and wages and other similar measures for the relevant DES service. Management believes that the allocation methods are reasonable. Questar Gas provides certain services to related parties, including technical services. The billed amounts of these services are allocated based on the specific nature of the charges. Management believes that the allocation methods are reasonable. The amounts of these services follow:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
(millions)
Affiliated operator service fee⁽¹⁾	$	60.5	$	74.8	$	192.0	$	230.4
Transportation and storage services from affiliates⁽¹⁾		17.5		17.4		55.1		54.3
Services provided by related parties		13.1		17.1		41.9		39.0
Services provided to related parties		1.3		1.6		4.0		4.5

(1)The costs of these services were included in purchased gas in Questar Gas’ Statements of Income.

Questar Gas participates in certain Dominion Energy benefit plans as described in Note 16 to the Financial Statements in Questar Gas’ Annual Report on Form 10-K for the year ended December 31, 2017. At September 30, 2018 and December 31, 2017, amounts due from Dominion Energy associated with the benefit pension plan and included in pension and other postretirement benefit assets in the Balance Sheets were $111.1 million and $107.1 million, respectively. At September 30, 2018 and December 31, 2017, Questar Gas’ amounts due to Dominion Energy associated with the health and welfare plan and included in other deferred credits and other liabilities in the Balance Sheets were $12.2 million and $14.9 million, respectively.

The Dominion Energy Questar Combination resulted in merger and restructuring costs of $2.5 million and $9.2 million for the three and nine months ended September 30, 2017, respectively, charged from Dominion Energy Questar. These costs primarily consist of employee related costs allocated to Questar Gas and are included in other operations and maintenance in Questar Gas’ Statements of Income.

Questar Gas had a $48.4 million balance under the IRCA with Dominion Energy as of September 30, 2018 and a $75.0 million balance at December 31, 2017. Interest charges related to Questar Gas’ total borrowings from Dominion Energy were $0.3 million and less than $0.1 million for the three months ended September 30, 2018 and 2017, respectively, and were $0.5 million and $0.1 million for the nine months ended September 30, 2018 and 2017, respectively.

Questar Gas maintains natural gas imbalances with Dominion Energy Questar Pipeline. The imbalances receivable from Dominion Energy Questar Pipeline were $1.1 million and $0.9 million at September 30, 2018 and December 31, 2017, respectively, included in other current assets in the Balance Sheets.