LETTER NO. L-5-02 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. 431 VIA FACSIMILE (250) 996-8730 January 31, 2002 Mr. Scott Shettell General Manager Apollo Forest Products Ltd. P.O. Box 129 Fort St. James, B.C. V0J 1P0 Dear Mr. Shettell: Re: British Columbia Hydro and Power Authority (“B.C. Hydro”) Apollo Forest Products Ltd. (“Apollo”) Bypass Application _____________and Transmission Service to Fort St. James______________ Thank you for your letter dated January 17, 2002. Commission Order No. G-60-01 required B.C. Hydro to construct the transmission line between Vanderhoof and Fort St. James at its own cost once new confirmed load exceeds existing capacity. Commission Letter No. L-42-01 set the revenue guarantee required from Apollo at $2,728,055 and indicated that the guarantee would be reduced each year by the incremental revenue from Apollo. The Commission’s determinations on the customer contribution and revenue guarantee related to the transmission line between Vanderhoof and Fort St. James were based on a specific set of circumstances, which included an anticipated load increase of 5 MVA from Apollo and another 5 MVA from other customers in the Fort St. James area. Your letters to the Commission dated December 21, 2001 and January 17, 2002 indicate that Apollo now anticipates lower initial load growth and does not intend to build its substation until the phase 2 expansion is confirmed, which will be no earlier than 2004. Based on this information, it appears that construction of the new transmission line is not immediately required. While the Commission believes the principles underlying its determinations in Order No. G-60-01 and Letter No. L-42-01 continue to be appropriate, it will reevaluate the required customer contributions and revenue guarantees if circumstances change. Yours truly, Original signed by: Robert Pellatt MAG/cms cc: Mr. Ray Aldeguer, Senior Vice President Legal and Regulatory Affairs and General Counsel British Columbia Hydro and Power Authority Mr. Jim Togyi Mayor, District of Fort St. James BCH/Cor/Apollo Reevaluate Project
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