The ratings on Questar Gas Co. reflect a moderately supportive regulatory environment, low gas-supply risk, and minimal competitive pressures. These strengths are partially offset by exposure to certain nonregulated activities at affiliate companies. Questar Gas is the regulated gas distribution subsidiary of Questar Corp. Questar is a natural gas-focused energy holding company that acquires, explores for, develops, produces, gathers, processes, and markets oil, gas, and hydrocarbon liquids through its subsidiary, Questar Market Resources Inc. (QMR). Questar also owns Questar Pipeline Co., which conducts interstate gas transportation and storage activities. Utah-based Questar had about $970 million of total debt (primarily long-term debt) outstanding at the end of second quarter 2005. Of this amount, Questar Gas accounts for roughly 30%. Questar Gas's
