B R IT I S H C O L U M B I A U T IL IT IE S C O M M I S S I O N O R D ER N U M B ER G-112-97 SIXTH FLOOR, 900 HOWE STREET, BOX 250 a TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 BC TOLL FREE: 1-800-663-1385 CANADA 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 an LNG Liquefaction and Dispensing Agreement BEFORE: L.R. Barr, Deputy Chair ) and Acting Chair ) October 31, 1997 F.C. Leighton, Commissioner ) O R D E R WHEREAS: A. On October 27, 1997 BC Gas Utility Ltd. ("BC Gas") applied to the Commission for approval, of an Interruptible Transportation Agreement and an Interruptible Liquefaction and Dispensing Agreement of customer-owned gas with International Forest Products Ltd. ("Interfor") for the period NovemberÊ1, 1997 to October 31, 2002; and B. The proposed Agreements included a rate of $0.40/GJ for Interruptible Transportation Service, and a rate of $0.90/GJ for Interruptible Liquefaction Service; and C. The Commission has reviewed the rates for service and has determined that the interruptible liquefaction rate should be based on: ¥ the higher of the full O&M costs or, the incremental O&M costs, and ¥ the rate should replace the costs associated with maximum LNG send-outs being required at both the beginning and the end of the heating season, namely a rate of $0.15 per GJ rather than the $0.10 per GJ rate proposed; and D. The Commission has reviewed the Application and finds that its approval is required subject to the modifications to the contract as noted above. NOW THEREFORE the Commission approves, subject to BCÊGas filing Tariff Supplements No.ÊE-10 and I-5 with the appropriate changes, the BCÊGas/Interfor Interruptible Transportation Agreement and the Interruptible Liquefaction and Transportation Agreement, effective NovemberÊ1, 1997. DATED at the City of Vancouver, in the Province of British Columbia, this ÊÊÊÊ12thÊÊÊday of November, 1997. BY ORDER Original signed by: Lorna R. Barr Deputy Chair and Acting Chair ORDER/BCG-InterforIntAgrmt
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