B R I T I S H C O LU M B I A U T I L I T I E S C O M M IS S I O N O R D ER N U M B ER G-127-96 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA a FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, S.B.C. 1980, c. 60, as amended and An Application by Pacific Northern Gas Ltd. for Approval to Acquire Centra Gas Fort St. John Inc. BEFORE: M.K. Jaccard, Chairperson; and ) L.R. Barr, Deputy Chairperson ) December 19, 1996 O R D E R WHEREAS: A. On DecemberÊ4, 1996 Pacific Northern Gas Ltd. (ÒPNGÓ) applied to the Commission for approval to acquire all of the outstanding shares of Centra Gas Fort St. John Inc. (ÒCentra Gas FSJÓ) pursuant to Section 61(6) of the Utilities Commission Act (Òthe ActÓ), effective JanuaryÊ1, 1997; and B. On November 29 and December 2, 1996 a Public Notice was published in newspapers in the Fort St.ÊJohn area inviting residents to comment on the proposed transfer; and C. PNG met with community officials in Fort St.ÊJohn and the District of Taylor and invited comments. Letters expressing no opposition to the transfer of shares were received from the Peace River Regional District, the City of Fort St.ÊJohn and District of Taylor. No letters or comments of opposition were received from the public; and D. On DecemberÊ10, 1996 Commission staff requested additional information concerning the acquisition to which PNG responded on DecemberÊ16, 1996; and C. The acquisition of Centra Gas FSJ will be at a premium over book value, will not be recovered by increasing customer rates, will be financed by 50Êpercent debt and 50Êpercent equity, will not be detrimental to the financial integrity of PNG and will continue to provide the high level of service to the utility customers; and E. The Commission has reviewed the information provided and finds that approval of the acquisition is necessary and in the public interest. . . ./2
2 NOW THEREFORE the Commission orders as follows: 1. Pursuant to Section 61(6) of the Act the acquisition by PNG of all outstanding shares of Centra Gas FSJ is approved effective JanuaryÊ1, 1997, subject to the terms of the share purchase agreement being fulfilled. 2. PNG is to provide all customers with a Notice on the acquisition of the Fort St.ÊJohn utility from Centra Gas, Fort St. John. DATED at the City of Vancouver, in the Province of British Columbia, this ÊÊ23rdÊÊday of December, 1996. Orders/PNG-Transfer of CGFSJB R I T IS H C O L U M B I A U T I L I T I E S C O M M IS S I O N O R D ER N U M B E R G-127-96 BY ORDER Original signed by: Dr. Mark K. Jaccard Chairperson
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