SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA web site: http://www.bcuc.com IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by Terasen Gas Inc. for Approval of an Operating Agreement and Addendum with the Corporation of the City of Quesnel BEFORE: R.H. Hobbs, Chair L.A. Boychuk, Commissioner L.F. Kelsey, Commissioner CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY WHEREAS: A. On November 7, 2003, Terasen Gas Inc. (“Terasen Gas”) applied to the British Columbia Utilities Commission (“the Commission”) for approval of an Operating Agreement and Addendum with the Corporation of the City of Quesnel (“the City”); and B. The Operating Agreement with the City has a 21-year term to December 31, 2023 and replaces the franchise agreement dated September 6, 1977. As this Operating Agreement is one of the first of the new form intended to replace all gas franchise agreements, the Addendum contains a favoured municipality provision allowing it to substitute the provisions of any alternative agreement or arrangement that Terasen Gas might negotiate with other municipalities. The Addendum expires December 31, 2007 if this right is not exercised; and C. The Operating Agreement with the City is in the same form as the Operating Agreements that the Commission approved for the City of Penticton and the District of Salmon Arm. NOW THEREFORE the Commission, pursuant to Section 45 of the Utilities Commission Act, grants Terasen Gas a Certificate of Public Convenience and Necessity which shall expire December 31, 2023 based on the January 1, 2003 Operating Agreement and Addendum with the Corporation of the City of Quesnel. DATED at the City of Vancouver, in the Province of British Columbia, this 1 Orders/TGI_Quesnel Operating Agrmnt BRITISH CO LUMBIA UTILITIES CO MMISSION ORDER NUMBER C-16-03 TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 ) ) November 27, 2003 ) st of December 2003. BY ORDER Original signed by: Robert H. Hobbs Chair
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