Why does the Public Service Commission grant multiple rate increases when Questar is reporting record profits?
The simple answer is that Questar Gas Company (QGC) is not making record profits. The confusion lies in the fact that QGC, the distribution company that provides natural gas service to your home, is owned by a parent company called Questar Corporation. It is Questar Corporation, not the regulated utility QGC, that is reporting high returns. Today, Questar reports that QGC makes up only 7 percent of Questar Corporation. State regulators regularly audit QGC returns to ensure it earns no more than the Commission’s authorized return, currently 11.2 percent. Other companies owned by Questar Corporation are contributing to its reported high returns. The profits earned by other Questar Corporation companies are not regulated by the Utah Public Service Commission.
