LETTER No. L-53-97 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 September 4, 1997 Mr. Craig P. Donohue Manager of Regulatory Affairs Pacific Northern Gas Ltd. Suite 1400 1185 West Georgia Street Vancouver, B.C. V6E4E6 Dear Mr. Donohue: Re: Pacific Northern Gas Ltd. Application - Disposition of Skeena Cellulose Inc. ("Skeena") Deferral Account This letter is further to your Application of July 18, 1997 for Commission approval of the disposition of the Skeena Deferral Account, set up in accordance with Commission Letter No. L-14-97. The Commission has reviewed the Application and also the comments received from intervenors/interested parties and further responses to those comments from PNG. After consideration of all of the issues identified, the Commission has determined that the net costs in the Skeena Deferral Account are recoverable through rates. The closure of the Skeena mill is an extraordinary event that was not reasonably foreseeable at the time of the rate setting for 1997 and PNG took prudent actions as the closure became evident. However, the Commission has concluded that an Order permitting the amortization of a specific balance in the Skeena Deferral account is not warranted at this time. PNG should apply to the Commission at a later date for the amortization of the balance in the deferral account. This balance should identify and record the costs as permitted under Letter No. L-14-97, net of deductions for avoided costs and net of incremental revenues achieved through mitigation efforts of the Company. Upon review of this future Application and a determination that the net costs recorded are appropriate, the Commission will issue an Order permitting the recovery of the Skeena Deferral Account balance through its amortization in rates commencing in 1998. Yours truly, FSJ/cms cc: PNG 97Revenue Requirement Intvrs. PNG/CorlSkeena Deferral Acct
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.