LETTER NO. L-21-94 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER. B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660-4700 ROBERT J. PELLATT BC TOLL FREE: 1-800-663-1385 COMMISSION SECRETARY FACSIMILE: (604) 660-1102 VIA FACSIMILE August 4, 1994 Mr. Anthony Haines Director of Regulatory Affairs & Planning Centra Gas British Columbia Inc. 1675 Douglas Street P.O. Box 3777 Victoria, B.C. V8W3V3 Dear Mr. Haines: Re: Centra Gas British Columbia Inc. - Vigas Service Area 1994/95 Gas Contracting Plan Further to your 1994/95 Gas Contracting Plan filed by letter dated June 30, 1994, the Plan is approved by the Commission, subject to the following specific directions and on the understanding that all individual supply contracts will continue to be filed in a timely fashion for Commission approval. The Plan is a generally acceptable strategy for acquiring gas supplies needed for the 1994/95 gas contract year. 1 . Noting that there is uncertainty in Centra Gas' forecast of peak day requirements, Centra Gas is directed to file, by August 31, 1994, a contingency plan that sets out how the utility would meet the high forecast of 53,000 GJ/d. 2. When a contract or amendment with indexed pricing is filed for approval, Centra Gas will provide justification for the index selected, any differentials or adjustments used in the price calculation and any price hedging that is invol ved. 3. Noting that Centra Gas states it intends to minimize annual fixed charges associated with its supply contracts, Centra Gas is directed to incorporate cost information from its IRP process in its evaluation of alternative supply resources. ... f I ') ~
2 4. Centra Gas is directed to file by August 31,1994 a description of how its off-peak supply and transponation remarketing is structured and a repon on the remarketed quantities, revenue and fees for the current gas year to June 30, 1994. 5. Centra Gas is directed to file its 1993/94 seasonal supply contract for Commission approval as soon as possible and in any event by August 31, 1994. The Commission has accepted the Plan on a "confidential" basis, at the request of Centra Gas, under the understanding that it contains commercially sensitive information related to energy supply contracts. onstance M. Smith for: Roben J. Pellatt cms/ RCG/Cor /1'\ pprovcGasCnlrti! PI :,n
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