LETTER NO. L-57-04 SIXTH FLOOR, 900 HOWE STREET, BOX 250 ROBERT J. PELLATT VANCOUVER, B.C. CANADA V6Z 2N3 COMMISSION SECRETARY TELEPHONE: (604) 660-4700 Commission.Secretary@bcuc.com BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 Log No. 7834 VIA FACSIMILE December 6, 2004 Mr. C.P. Donohue Director, Regulatory Affairs & Gas Supply Pacific Northern Gas Ltd. 950 - 1185 West Georgia Street Vancouver, B.C. V6E 4E6 Dear Mr. Donohue: Re: Pacific Northern Gas Ltd. Accounting Treatment for Work Channel Slide Pipeline Break Further to your November 10, 2004 letter summarizing the Work Channel Slide Pipeline Break and associated repair cost estimates, this letter confirms that PNG will record the temporary repair costs in the Line Break Costs Deferral Account, amortized over ten years and pending Commission approval of the final costs, permanent repair costs will be capitalized in Plant Assets. The accounting treatment is consistent with past practices. PNG indicates that the plant losses due to the pipeline break have not yet been determined. PNG is to report on the actual plant losses and its proposed regulatory accounting treatment as part of its 2005 Revenue Requirements Application. Yours truly, Original signed by: Robert J. Pellatt RJP/mmc cc: Mr. K. Duke, Alcan Primary Metals B.C. Mr. R.J. Gathercole, B.C. Public Interest Advocacy Centre PNG/Cor/Work Channel Slide Defrl Acct
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