LETTER NO. L-25-05 SIXTH FLOOR, 900 HOWE STREET, BOX 250 ROBERT J. PELLATT VANCOUVER, B.C. CANADA V6Z 2N3 COMMISSION SECRETARY TELEPHONE: (604) 660-4700 Commission.Secretary@bcuc.com BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 Log No. 8276 VIA FACSIMILE (604) 697-6210 April 12, 2005 Mr. C.P. Donohue Director, Regulatory Affairs & Gas Supply Pacific Northern Gas (N.E.) Ltd. 950 - 1185 West Georgia Street Vancouver, B.C. V6E 4E6 Dear Mr. Donohue: Re: Pacific Northern Gas (N.E.) Ltd. (“PNG(NE)”) 2005 Federal Budget’s Proposed Increases in Capital Cost Allowance Rates The 2005 Federal Budget proposed increases in allowed Capital Cost Allowance (“CCA”) rates and, in particular, for oil and gas transmission pipelines from 4 percent to 8 percent and a 15 percent rate for compression and pumping equipment on such pipelines. The Commission requires that PNG(NE) provide a report by Monday, April 18, 2005 that identifies the impact on 2005 income taxes that would result if the proposed CCA rates were to take effect. The report is to provide the proposed effective date of the CCA rate change and identify the current 2005 income tax provision, the asset pools that are eligible for the CCA rate change and the change in the allowed 2005 CCA deduction that would result if the proposed CCA rates were to take effect. Yours truly, Original signed by: Robert J. Pellatt RJP/dlf cc: Registered Intervenors PNG(NE) 2005 RR PNGNE/Cor/2005FedBudgetPropsdIncrse-CapitalCost
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