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B R I T IS H C O L U M B I A U T I L I T IE S C O M M I S S I O N O R D ER N U M B E R G-9-03 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by BC Gas Utility Ltd. for Approval of Tariff Supplement No. I-6 with Northwest Natural Gas Company and the Cancellation of Tariff Supplement No. I-1 with PG&E Energy Trading, Canada Corporation BEFORE: P. Ostergaard, Chair ) K.L. Hall, Commissioner ) February 6, 2003 O R D E R WHEREAS: A. On June 21, 1999 the Commission, by Order No. C-11-99, approved a Certificate of Public Convenience and Necessity for the Southern Crossing Pipeline (“SCP”) project. The Order also approved a Firm Tendered Transportation Service Agreement (“Transportation Agreement”) for approximately 52,500 Mcfd of SCP capacity (from Yahk or Kingsvale to Huntingdon) with PG&E Energy Trading, Canada Corporation (“PG&E”). The Transportation Agreement had a primary term to October 2010 and required PG&E to pay BC Gas Utility Ltd. (“BC Gas”) $3.6 million per year. PG&E had an option to extend the agreement to October 2020; and B. By letter dated December 5, 2002, BC Gas advised the Commission that PG&E was encountering financial difficulties and requested Commission approval for a set of transactions that were designed to preserve the value of the SCP capacity contracted to PG&E for BC Gas and its customers. By Letter No. L-48-02 the Commission stated it was prepared to approve the agreements related to SCP capacity held by PG&E; and C. On January 15, 2003, BC Gas applied to the Commission for approval to cancel Tariff Supplement No. I-1 - Firm Tendered Transportation Service Agreement (as amended) with PG&E, and for approval of Tariff Supplement No. I-6 - Firm Transportation Service Agreement with Northwest Natural Gas Company (“NWN”) for approximately 42,500 Mcfd of SCP capacity effective November 1, 2004 (“the Application”); and D. On January 27, 2003, BC Gas responded to a Commission staff information request concerning the Application; and . . ./2
2 E. The Commission has considered the Application and is satisfied that the cancellation of Tariff Supplement No. I-1 and approval of Tariff Supplement No. I-6 are in the public interest. NOW THEREFORE the Commission orders as follows: 1. The Commission approves for BC Gas the cancellation of Tariff Supplement No. I-1 with PG&E effective January 1, 2003. 2. The Commission approves for BC Gas Tariff Supplement No. I-6 with NWN effective November 1, 2004 and accepts the Tariff Supplement for filing. 3. The Commission will hold the Demand Charge Determination identified as Exhibit A of Tariff Supplement No. I-6 as confidential. DATED at the City of Vancouver, in the Province of British Columbia, this 13 Order/BCG-TS-PG&E/NthwstB R I T I S H C O L U M B I A U T I L I T I E S C O M M I S S I ON O R D ER N U M B E R G-9-03 th day of February 2003. BY ORDER Original signed by: Peter Ostergaard Chair
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