SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20005
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report - January 10, 1994
(Date of earliest event reported)
Mountain Fuel Supply Company
(Exact name of registrant as specified in charter)
STATE OF UTAH 1-935 87-0407509
(State or other juris- (Commission (I.R.S. Employer
diction of incorporation File No.) Identification No.)
or organization)
180 East First South Street, Salt Lake City, Utah 84111
(Address of principal executive offices)
Registrant's telephone number, including area code (801) 534-5555
Not Applicable
(Former name or former address, if changed since last report.)
FORM 8-K
CURRENT REPORT
Item 5. Other Events.
On January 10, 1994, the Public Service Commission of Utah (the
"PSCU") issued a Report and Order concerning the general rate increase
application filed by Mountain Fuel Supply Company ("Mountain Fuel" or the
"Company") on April 2, 1993. See Mountain Fuel's Quarterly Report on Form
10-Q for the quarter ended September 30, 1993, Part II, Item 1. Legal
Proceedings, Paragraph (c) and other reports referred to therein. The
PSCU, in its order, authorized a return on equity of 11.0 percent and
specified an annualized decrease in the Company's rates of $1.6 million.
(In its application, as supplemented and revised, Mountain Fuel requested
authorization to increase its rates to collect an annualized revenue
deficiency of $10.3 million and requested a return on equity of 12.1
percent.)
The PSCU, in its order, also approved stipulations on purchased gas,
gathering, transportation, working gas and storage costs, the treatment of
revenue credits generated by Mountain Fuel as a result of temporarily
releasing firm capacity on Questar Pipeline Company's system, and the
handling of working gas costs in the Company's gas balancing account. As a
result of this stipulation on working gas costs, $2.1 million of costs
reflected in Mountain Fuel's general rate case application were added to
its gas balancing account.
The PSCU, in its order, disallowed rate coverage for most of the
Company's advertising expenses and incentive compensation costs. The PSCU
also required the Company to recognize unbilled revenues for ratemaking
purposes on a five-year phase-in basis. The PSCU's order does permit the
Company to accrue for post-retirement benefit costs.
Mountain Fuel's new rates to reflect the decrease authorized by the
PSCU and the lower return on equity became effective January 1, 1994. The
Company's rates to reflect its gas balancing account or pass-through
application also became effective as of January 1, 1994. The net effect of
the PSCU's orders in the Company's general rate case and pass-through
application was an overall annualized revenue decrease of $6.5 million.
The Company's management is currently reviewing the provisions of the
PSCU's Report and Order and plans to file an application for rehearing
within the statutory 20-day period.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
MOUNTAIN FUEL SUPPLY COMPANY
(Registrant)
January 10, 1994 By /s/D. N. Rose
(Date) D. N. Rose
President and
Chief Executive Officer
