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Questar to public rate critics: Shut up, stay out of our business
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Questar Gas Co. wants its Utah customers - particularly consumer advocate Roger Ball and his supporters - to shut up and keep out of its business.

The utility, the primary supplier of the natural gas used to heat Utah homes, is asking the state's utility regulators to change their rules to stop individual consumers from fully participating in rate cases and other matters requiring a formal hearing before the Public Service Commission.

If that happens, Questar's customers would be limited only to offering the PSC their opinions on whether rate increases are fair. Consumers would be prevented from questioning Questar's witnesses, reviewing and analyzing information the utility doesn't want made public or presenting evidence against the company's position.

''Questar now wants the PSC to adopt its views of what 'appropriate' participation is by the public,'' said Ball. "That is arrogant and totally unacceptable. These are issues that affect people's pocketbooks, and consumers need to have a say."

John Flynn, a retired University of Utah law professor whose advocacy efforts in the 1990s in a single telephone-rate case helped save consumers roughly $225 million, agreed.

"To me, [Questar's proposal] is just another gambit to keep the public out of the rate-making process. Things have been getting pretty nasty up there [at the PSC] lately."

Flynn said that if the PSC wants to have control over its formal hearings "and keep the loonies out of the process," that is something easily under the control of the commission's chairman.

Questar proffered its comments in response to a May 2 request by the PSC, in which the state's top utility regulatory body indicated it wanted to review its procedures for conducting formal hearings, such as those held when rate increases are considered.

The PSC's request followed its ruling a week earlier that turned down Questar Gas' plan to charge all its customers an additional $1.7 million annually so nearly three dozen rural communities could pay off their debts to the utility for extending them natural gas service.

Questar found an ally for the proposed increase at the Committee of Consumer Services, the state body that ostensibly represents residential consumers and small businesses in utility matters.

Only Ball, the former director of the committee who was fired by Gov. Jon Huntsman Jr. after his transition team argued he fought too hard to keep utility rates down in Utah, spoke out in opposition to the increase.

The presence of Ball, who became involved after he realized there was no one speaking up for Questar's customers, led to a contentious affair.

Attorneys for the company, the consumer services committee and the state's Division of Public Utilities bristled whenever he asked questions that weren't posed in a lawyerly fashion. They took umbrage with his evidence and arguments.

In the end, the Public Service Commission turned down Questar's and the committee's request that it raise consumers' payments, saying it was inappropriate to increase the natural gas bills for more than 800,000 customers, while conferring a windfall on a select group.

For its part, on the larger question of public participation in rate cases, Questar maintains that the interests of Utah residential natural gas users are best represented by the Committee of Consumer Services, without any of the users being allowed to participate directly in the cases.

Ball argues that is a problem when the committee is siding with a utility against the best interests of the majority of a utility's customers.

"For heaven's sake, I don't want to be involved in these cases," Ball said. "Someone, though, has to speak out when the committee isn't doing their job and is going along with whatever the utility suggests."

Individual consumers for years have been able to participate in formal hearings before the PSC by filing a request to intervene in the case. Few, though, ever did. It is only Ball's recent involvement that has prompted Questar to declare there is a problem.

Questar spokesman Chad Jones said the company was "solicited for our comments [by the PSC]. We always want to hear from our customers, but we think there does need to be some clarity about who should be allowed to become involved" in formal hearings.

Jones said it would be "completely unwieldy," for example, if all of Questar's 800,000 customers were to individually request to intervene in a rate case. Ball said that argument is nonsense. "Nothing like that is ever going to happen."

Ball and another consumer advocate, Claire Geddes, also are challenging the PSC's approval of an agreement between Questar and the Committee of Consumer Services that allows the company to increase its customers' rates to pay for the cost of removing troublesome carbon dioxide from natural gas before it gets piped to Utah homes. That challenge is pending before the Utah Supreme Court.

steve@sltrib.com

Previous Questar hot potatoes

* The Wexpro deal - 1976: Questar, then known as Mountain Fuel Supply, ran an exploration program paid for by its customers. When it hit a natural gas well, the customers got the benefit. When it hit an oil well, the benefit flowed to the shareholders, while customers paid for all dry holes. After a long court battle, Questar settled.

* Olympic sponsorship - 1999: As part of a $22.2 million rate hike request, Questar asked the state for approval to charge its customers $2 million to cover the cost of its contributions to the 2002 Olympics. Public outcry led the utility to withdraw its request.

* Millions in refunds - 2000: After years of effort, Questar received permission to charge its customers $25 million to remove carbon dioxide from its natural gas before it was piped to homes. But the Committee of Consumer Services objected and went to the Utah Supreme Court, where Questar was ordered to refund the money.

* Subpoenaing critics - 2006: Undaunted, Questar again asked regulators if it could collect gas-processing costs. Two consumer advocates vowed to challenge the company again in court. Questar responded by subpoenaing several customers and shareholders. Publicity led Questar to drop the subpoenas.

* The Public Service Commission will conduct a hearing at 9:30 a.m. on Wednesday at the Heber Wells Building, 160 E. 300 South in Salt Lake City.

* The consumer panel will consider suggestions for revamping the way it conducts rate cases and other formal hearings.

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