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LETTER NO. L-17-05 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. 9325 VIA E-MAIL Stirling.Bates@gems6.gov.bc.ca March 16, 2005 Mr. Stirling M. Bates Director, Regulatory Policy Oil and Gas Policy Branch / Oil and Gas Division Ministry of Energy and Mines PO Box 9318, Stn Prov Govt 5th Floor, 1810 Blanshard Street Victoria, BC V8W 9N3 Dear Mr. Bates: Re: Terasen Gas (Squamish) Inc. Proposed Main Extension to Discovery Center The Commission has reviewed the financial projections contained in the Terasen Gas (Squamish) Inc. (“Terasen Squamish”) Discovery Center main extension application dated March 3, 2005. The Commission agrees, that based on the information available, the extension should proceed. Consistent with previous main extension applications, Terasen Squamish will take responsibility for increased Rate Stabilization Facility (“RSF”) funding that result from: 1. Capital costs that are higher than forecast; and 2. Customer consumption and attachments less than forecast. In the application Terasen Squamish has included natural gas prices based on its approved January 1, 2005 rates. The RSF impact analysis pertaining to the Discovery Center main extension indicates favourable RSF payments for each of the 20 years in the forecast period. …/2
2 LETTER NO. L-17-05 The Commission requests a copy of the Ministrys response to Terasen Squamish approving the Discovery Center main extension. Should the Ministry not approve the extension or requires changes which will affect the RSF payment calculations, please provide the Commission details explaining the disapproval or the changes. Yours truly, Original signed by: Robert J. Pellatt DC/cms cc: Mr. Scott A. Thomson, Senior Vice President and CFO Terasen Gas (Squamish) Inc. Mr. Paul Wieringa, Director Electricity Policy Branch Ministry of Energy and Mines TGS/Cor/Discovery Center Main Xtnsn
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