s~ COL.& 0\ ~ 4?($) g ~'f -~ f " t "' ~ c, .~ ~ ~,{~ ?~ ~, "/ . ..' , .', . . , ', . .' ROBERT J. PELLATI '/,>~ COMMISSION SECRETARY /~sยทยท~~~~\ VIA FACSIMILE 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. Application for Approval of Heating Insurance PlanlBurner Tip Service The Commission has reviewed PNG's application for the Heating Insurance Plan and Burner Tip Service Program that would be provided through the non-regulated business ("NRB "), identified as PNG Marketing Ltd. In the case presented, the NRB draws all of its services from the parent utility, PNG. It is the Commission's decision that this application should not be approved, as the proposed corporate arrangement presents a high risk of cross-subsidization between the utility and the NRB. A stand-alone non-regulated NRB would present a corporate structure that would lower the risk of cross-subsidization. RJP/ssc PNGICor/ApprvIHIP-BTS LETTER No. L-76-97 " + c; ~ ~ ~ ". 0 ;z SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 .. ." . C r ;J _ TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 January 14, 1998 Yours truly, -obert J. Pellatt
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