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SALT LAKE CITY (AP) -- Questar Gas Co. won't be allowed to bill all of its customers to help recover a portion of $1 million in losses from an under-billing problem, the Utah Public Service Commission ordered.
In a settlement reached in October with the Utah Division of Public Utilities, the Committee of Consumer Services and the Salt Lake Community Action Program, the utility originally wanted its 850,000 customers to pay about 40 cents each to cover $377,357 of the losses.
But following complaints, the public service commission issued an order Wednesday saying Questar shareholders would have to absorb that loss.
For two years, Questar Gas was under billing some customers by half for natural gas, and double-billing a smaller group of consumers, because of a meter blunder.
As part of the October settlement, Questar had agreed to absorb only $480,000 of the losses.
The rest, $224,089, was to have been picked up by 582 customers who used more than $1 million worth of gas and never paid for it. Those customers would have paid back $385 on average, depending on usage.
Michele Beck, executive director of the Committee of Consumer Services, said Wednesday's order is a victory for rate payers.
"The committee absolutely supports the commission's decision, a decision that closely reflects the committee's original position in this case and is an excellent outcome for consumers," Beck said.
Questar spokesman Darren Shepherd said the company was disappointed that a piece of the settlement was rejected.
"Automated meter reading is more than 99 percent accurate and provides substantial benefits, but we are being penalized for not being perfect," Shepherd said.
He said the company believes the decision will cost customers more in the long run.
Questar has five business days to decide whether to appeal and in the meantime plans to huddle with the three government agencies on how to proceed, he said.
Questar serves customers in Utah, southwestern Wyoming and a sliver of southeastern Idaho.
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Information from: Deseret News
(Copyright 2008 by The Associated Press. All Rights Reserved.)
