The ratings on Questar Gas Co. reflect a healthy service territory, sound regulation, a good supply position, and significant integration with affiliated Questar Corp. units. Sales growth is due to strong economic growth in its service territory and further penetration in the central and southwestern Utah markets. Although industrial users are increasingly switching from sales service to transportation, margins are protected by transportation rates that are designed to cover fully the nongas costs of providing service. The company's supply position is strong, with almost half of its supply coming from its own properties managed by an affiliated Questar unit. Earnings stability is enhanced through the operation of a weather-normalization clause in Utah. Cash flow interest coverage should remain healthy, at
