LETTER NO. L-40-00 ROBERT J. PELLATT SIXTH FLOOR, 900 HOWE STREET, BOX 250 COMMISSION SECRETARY VANCOUVER, B.C. CANADA V6Z 2N3 Commission.Secretary@bcuc.com TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 VIA FACSIMILE August 10, 2000 Mr. D.M. Masuhara Vice President Legal, Regulatory and Logistics BC Gas Utility Ltd. 24 th Floor 1111 West Georgia Street Vancouver, B.C. V6E 4M4 Dear Mr. Masuhara: Re: BC Gas Utility Ltd. Vancouver International Airport Authority ___Authorization to Resell Natural Gas___ Attached is a letter dated July 26, 2000 from the Vancouver International Airport Authority (“the Airport Authority”) requesting authorization to resell a portion of the natural gas that it buys from BC Gas under Rate Schedule 5 to its tenants. The Commission understands that the tenants are generally food court services and that individual meters have been installed. The Airport Authority intends to mark-up its average cost of gas by 15 percent to defray the cost of metering and administration. The resulting cost to each tenant is expected to be less than the cost of taking service under Rate Schedule 3. In this circumstance, the authorization that is needed appears to be with respect to the BC Gas tariff. Section 3.2 of the General Terms and Conditions states: “Unless authorized in writing by BC Gas, a customer must not sell or supply gas supplied to it by BC Gas to other persons . . . ” Section 2.1 of Rate Schedule 5 states: “This Rate Schedule applies to the sale of firm gas, no portion of which may be resold . . . ” Please review the situation, and confirm whether BC Gas is prepared to provide the Airport Authority with written authorization and/or an amendment to Rate Schedule 5 to permit the resale of gas. . . . /2
2 LETTER NO. L-40-00 If an amendment to Rate Schedule 5 is needed, BC Gas may wish to request approval of an amendment to this and other Rate Schedules that enable the Utility to grant written authorization for the resale of gas, at least with respect to resales to tenants, with the authorization subject to review by the Commission in the event of a complaint by an end user or other interested party. Please respond to the request by August 25, 2000. Yours truly, Original signed by: Alison Cormack for: Robert J. Pellatt RJP/yl Enclosure cc: Mr. Bob Cowan (Fax: 276-6505) Vice President, Engineering Vancouver International Airport Authority Mr. Arthur Kruszewski (Fax: 276-6395) Vancouver International Airport Authority Mr. Matt Steele (Fax: 576-7122) BC Gas Utility Ltd. Mr. Greg Morandini (Fax: 576-7122) BC Gas Utility Ltd. BCG/Cor/ResellNatGas-VancArpt
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