160419_Questar.pdf

Case No. QST-G-16-01, Order No. 33496
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Idaho regulators update contract with Utah commission
for natural gas service in Franklin County

BOISE (April 21, 2016) – The Idaho Public Utilities Commission approved an updated contract
with the Utah Public Service Commission that allows the Utah panel continued jurisdiction over
Questar Gas Company’s service to customers in Franklin County, Idaho.

Questar, headquartered in Salt Lake City, has about 900,000 customers in Utah, southwestern
Wyoming and Franklin County, Idaho (where it has about 2,000 customers).

Questar provides natural gas service to the communities of Preston and Franklin in Franklin
County. In 2015, Questar’s service territory was expanded to include the community of Dayton
and all of Franklin County.

Because of the county’s proximity to Utah and the small number of customers involved, the
Idaho PUC and the Utah commission entered into an agreement in 1990 giving Utah the
authority to set rates and customer service regulations for Questar’s Idaho customers. Under
the agreement, Idaho customers have full rights of participation before the Utah commission,
including the opportunity to pursue service-related issues against the company. Rates, charges
and service regulations for Idaho customers must be no less favorable than those in Utah.
Idaho Code §61-505 allows the Idaho commission to contract with regulatory agencies of
neighboring states to set rates and charges for customers in Idaho located in or nearby border
communities who are served by utilities that are “principally” located in neighboring states.

The 1990 agreement has been updated, in part, because of a proposed merger between
Questar and Virginia-based Dominion Resources. If the merger is approved by the Utah and
Wyoming commissions, the company will change its name to Dominion Questar Gas. Existing
rates and regulations will not be changed as a result of the proposed merger.

The commission noted that is “impractical” and not in the public interest for the Idaho
commission to regulate a utility principally located in Utah with such a small Idaho customer
base. However, Idaho maintains pipeline safety supervision over Questar facilities inside Idaho.

The agreement between the Idaho and Utah commissions will be automatically renewed each
year on April 1 subject to termination by either commission upon written notice.

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