LETTER NO. L-36-01 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 Log No. 7067 VIA FACSIMILE October 23, 2001 Mr. David M. Masuhara Vice President Legal, Regulatory & Logistics BC Gas Utility Ltd. 24th Floor, 1111 West Georgia Street Vancouver, B.C. V6E 4M4 Dear Mr. Masuhara: Re: Unbundling of Residential and Commercial Sales ABC-T Service (“Agency, Billing and Collection – Transportation Service”) Interested parties who attended the BC Gas Commodity Choice Stakeholder Information Meeting have now responded to the Commission’s letter dated September 21, 2001. These letters have been sent out to those who attended the September 20, 2001 meeting and are available to others upon request. BC Gas provided its overall position with respect to the next phase in the development of ABC-T service in its letter of October 9, 2001. It recommended that the implementation date be deferred to November 2003. There was agreement for the deferment from both the British Columbia Public Interest Advocacy Centre (“BCPIAC”) and R.T. O’Callaghan & Associates (“RTOA”). BCPIAC agreed that there was no compelling reason for the program to proceed at this time and recommended deferment by a year. RTOA agreed and considered that the Commission’s ability to licence marketers is fundamental to the implementation date. Support for the current schedule was received from three attendees. The marketers in attendance, Direct Energy Marketing Ltd., Enron Energy Services Canada Corp. and Enbridge Business Services Inc., indicated concerns about the business model but thought that these issues could be resolved to maintain the original schedule. Hollyburn International supported the business model and the original November 2002 schedule. The Ministry of Energy and Mines considered that support for the business model was low and questioned whether there was sufficient market research to justify the project. In the Ministry’s view, the program should not proceed unless there is significant consumer interest. After considering the various viewpoints, the Commission agrees with the revised implementation date of November 2003. The Commission considers that the present project should not proceed any further until …/2
2 LETTER NO. L-36-01 such time as the necessary licensing and enforcement mechanisms are in place. The Ministry of Energy and Mines is currently undertaking a review of energy policy. Once this initiative has been concluded, the Commission’s request for legislative change through amendments to the Utilities Commission Act (“the Act”) to permit the licensing of marketers will be assessed. However, at this time there is no schedule as to when the proposed amendments to the Act may be approved. Therefore, a reassessment of the ABC-T service timetable will be made in the second quarter of 2002 when the legislative agenda is more certain. This would accommodate review and approval of the ABC-T service program, with work on Phase 1 commencing by mid summer. The Commission will continue to support passage of the legislative amendments but otherwise considers that work on the unbundling project should be placed in abeyance until the second quarter of 2002. Yours truly, Original signed by: Robert J. Pellatt RNB/cms Attachments cc: ABC-T Participants (w/attachments) ABC-T Interested Parties (w/o attachments) (BCG99ABC-T Lists A & B) BCG/ABC-T/Project Delay to Nov 2002
BC Gas Utility Ltd. Unbundling of Residential and Small Commercial Sales ABC-T Meeting Participants (with letters attached) Attendees L. Oliver, Embridge Business Services P. Sander,Hollyburn Properties F. Tiberi, Enron Canada Corp C. Donohue, Pacific Northern Gas Ltd. J. Broderick, Pacific Northern Gas Ltd. J. McKay, School District 43 S. Bates, Ministry of Energy and Mines C. Fussell, B.C. Hydro and Power Authority J. Bachman, B.C. Hydro and Power Authority A. Chung, B.C. Hydro and Power Authority M. McCordic, Avista Energy Canada, Ltd. J. Langley, IGI Resources Inc. R. Gathercole, BC Public Interest Advocacy Centre K. Kwok, City of Vancouver R. O’Callaghan, RT O’Callaghan & Associates Inc. B. Soutiere, Direct Energy Marketing Limited T. Loski, BC Gas Utility Ltd. Facsimile 604, 523-3092 604, 926-9717 403, 663-2899 604, 691-5863 604, 691-5863 604, 939-6400 250, 952-0271 604, 623-3743 604, 528-2518 604, 623-3743 604, 682-6447 604, 982-0206 604, 682-7896 604, 873-7064 604, 683-8799 403, 266-6684 604, 443-6696 …/2
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