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LETTER NO. L-34-06 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. 14955, 15114 VIA E-MAIL regulatory.affairs@terasengas.com July 6, 2006 Mr. Scott Thomson Vice President, Finance and Regulatory Affairs and Chief Financial Officer Terasen Gas Inc. 16705 Fraser Highway Surrey, BC V3S 2X7 Dear Mr. Thomson: Re: Terasen Gas (Whistler) Inc. 2006/07 Winter Hedge and Storage Plan On May 30, 2006, Terasen Gas (Whistler) Inc. (“Terasen Whistler”) filed its 2006/07 Winter Hedge and Storage Plan and subsequently filed a revision on June 13, 2006 that changed the implementation plan schedule identified in Table No. 2, page 5. The Commission accepts the Terasen Whistler 2006/07 Winter Hedge and Storage Plan but directs Terasen Whistler to provide evidence that the storage purchases were consistent with summer spot prices and winter fixed prices at the time of the transaction are consistent with the propane forward prices. In order to demonstrate the effectiveness of winter hedging plans for Whistler, please provide a report by May, 2007 that identifies the financial outcomes of the plans from 2004 to 2007 and an analysis to demonstrate that the objectives of the plan have been met. Yours truly, Original signed by Robert J. Pellatt RB/dg TGW/Cor/Winter Hedge & Storage Plan 2006/07
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