LETTER NO. L-1-97 <0\'\ COl.. ~\ ~ u ~ <$) t% ~' ~ :~ ~ :. ~ i~ _~ ~ """';= S ".,....~~ 2: '~~'" 0 SIXTH FLOOR, 900 HOWE STREET, BOX 250 /~ ~, VANCOUVER, B.C. CANADA V6Z 2N3 " '-/ / ;- " ,,' ", , ," . ,', ," . . C r ;J _ TELEPHONE: (604) 660-4700 ROBERT J. PELLAT T BC TOLL FREE: 1-800-663-1385 COMMISSION SECRETARY /~S"~'~~~\ FACSIMILE: (604) 660-1102 VIA FACSIMILE January 10, 1997 Mr. c.P. Donohue Manager of Regulatory Affairs Pacific Northern Gas Ltd. 1400 - 1185 West Georgia Street Vancouver, B.C. V6E4E6 Dear Mr. Donohue: Re: Pacific Northern Gas Ltd. Financial Information System Upgrade Further to your December 17, 1996 letter advising the Commission of the changes that PNG will be making to its Financial Information System, we wish to comment as follows: In the Commission's May 29, 1996 Revenue Requirements Decision for PNG the Commission addressed the matter of Customer Information System ("CIS") on pages 6 and 7. We wish to note that on page 7 (highlighted in "bold") the Commission directed as follows: " ... The Commission is extremely concerned about the risk factors and the apparently involuntary involvement of PNG in a large system which may significantly increase the risk of successful implementation for a small utility with more limited requirements. The Commission directs PNG, as proposed by counsel for the Applicant (T: 582), that prior to PNG's commitment to implementation of any CIS project, PNG must apply for Commission approval and justify the need for the system and the appropriateness of the related costs. All aspects of the CIS project, including other options and financial risks to customers will be reviewed for prudency ... " The Commission expects all aspects of the Decision to be followed, including that related to the CIS project. It would appear that PNG has not followed the Commission's direction and applied for approval of the CIS project. Yours truly, Robert J. Pellatt RJP/yk cc: Registered Intervenors, (with attachment PNG letter) PNG/Cor/CIS Project
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