Saying the cost of buying natural gas has declined “significantly” in recent months, Questar Gas asked the Public Service Commission of Utah (PSC) to reduce natural gas rates by $6.7 million, a move which would lower a typical residential customer’s annual bill by about $3.50 (0.5%). If approved, the rate cut would go into effect Oct. 1. Questar cut natural gas rates by $63 million (5.3%) last November and $157 million (16%) in March. Earlier this year the PSC approved a Questar request for an immediate $50 million one-time rebate to its customers (see Daily GPI, April 22). The rebate, which was also prompted by lower natural gas prices, reduced the typical customer’s May natural gas bill by $40-45, Questar said. Twice a year Questar and the PSC use third-party forecasts of gas prices to estimate how much the utility’s rates should be adjusted to cover anticipated gas procurement costs.

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