The ratings on Questar Gas Co. reflect a healthy service territory, supportive regulation, a good supply position, and significant integration with affiliated units. Questar Gas has a balanced and diversified portfolio of gas supply contracts with suppliers located in the Rocky Mountain states of Utah, Colorado, and Wyoming. These strengths are slightly offset by the higher risks associated with parent company Questar Corp.'s unregulated subsidiaries. Questar Gas' business profile is strengthened by good economic growth and a solid competitive position in its service territory. Questar Gas added more than 18,000 customers in the 12 months ended March 31, 2003, a 2.5% growth rate. In addition, temperature-adjusted usage per customer increased 2.4%. Even though Utah's population is growing faster than the
