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 20,000 customers in the 12 months ended Sept. 30, 2003, a 3.0% growth rate. However, gas usage per customer has been declining at 1.9% per year. Even though Utah's population is
