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QUESTAR GAS-DISTRIBUTION SUBSIDIARY RECEIVES GENERAL RATE CASE ORDER

 SALT LAKE CITY, Jan. 11 /PRNewswire/ -- Mountain Fuel Supply Co., a subsidiary of Questar Corp. (NYSE: STR), has received a general rate case order from the Public Service Commission of Utah (PSC) effectively authorizing the utility to increase rates by approximately $500,000 per year.
 The utility, in a general rate case originally filed in April 1993, sought a revised $10.3 million in rate relief to cover revenue deficiencies caused by rapid customer growth, rising costs and other factors. The PSC order provides for a $1.6 million rate decrease but allows about $2.1 million of the requested $10.3 million to be recovered through the company's gas-cost balancing account.
 A second PSC order adopted Mountain Fuel's Nov. 30, 1993, purchased- gas adjustment "pass-through" filing, which reflected a decrease in gas costs. The net effect of the two orders is a $6.5 million -- or 1.7 percent -- rate decrease.
 The commission order also provides for an authorized return on equity of 11 percent compared with 12.1 percent requested by the company.
 D.N. Rose, Mountain Fuel president and chief executive officer, said the general rate case order fails to set rates that accurately reflect the company's costs and to provide an adequate authorized rate of return for shareholders. He said the company would ask the commission for a rehearing on the order.
 Mountain Fuel had 1992 net income of $23,395,000 -- 29 percent of Questar's total -- on revenues of $373,047,000.
 Rose said the commission order was disappointing because it failed to recognize the impacts of rapid customer growth and changing industry conditions on the utility. "With Utah's rapid economic expansion, we have hooked up customers at a record pace in the past several years, with almost 20,000 in 1993 alone, and we expect this trend to continue in 1994. We have managed to keep pace through cost controls and enhanced productivity, with customers served per employee rising nearly 30 percent since 1985," Rose said.
 Also, new federal regulations have increased the business risk for local gas-distribution companies by requiring them to accept full responsibility for obtaining and maintaining gas supplies, Rose said. "With this higher risk and the growing demand for natural gas, public service commissions need to provide investors with the opportunity for higher returns to ensure utilities are able to attract necessary investment capital," he said.
 Pending the outcome of Mountain Fuel's request for a rehearing of its general rate case, the company has implemented the rate decrease, effective Jan. 1.
 -0- 1/11/94
 /CONTACT: R. Curtis Burnett, (Business), 801-534-5541 or (Home), 801-942-5171/
 (STR)


CO: Questar Corp.; Mountain Fuel Supply Co. ST: Utah IN: OIL SU:

EH-MF -- LA017 -- 0927 01/11/94 10:50 EST
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Date:Jan 11, 1994
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