Orders

BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -97-06 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 web site: http://www.bcuc.com FACSIMILE: (604) 660-1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by FortisBC Inc. for Approval of 2007-2008 Capital Expenditure Plan and Review of 2007 System Development Plan Update BEFORE: L.A. Zaozirny, Commissioner August 9, 2006 L.F. Kelsey, Commissioner O R D E R WHEREAS: A. On July 26, 2006, FortisBC Inc. (“FortisBC”) filed its 2007-2008 Capital Expenditure Plan and 2007 System Development Plan Update, and applied (the “Application”) to the Commission for approval of the 2007-2008 Capital Expenditure Plan; and B. FortisBC Inc. proposes that a written public hearing process be used to review the Application and requests that the Commission render a decision on the Application by early November 2006; and C. The Commission has determined that a Regulatory Timetable for a Workshop and a written public hearing process should be established to review the 2007-2008 Capital Expenditure Plan and 2007 System Development Plan Update. NOW THEREFORE the Commission orders as follows: 1. The Commission establishes a written public hearing process for the review of the 2007-2008 Capital Expenditure Plan and 2007 System Development Plan Update, in accordance with the Regulatory Timetable attached as Appendix A to this Order. …/2

2 2. A Workshop regarding the 2007-2008 Capital Expenditure Plan and 2007 System Development Plan Update will be held on Wednesday, September 6, 2006 at the Grand Okanagan Resort in Kelowna, B.C., commencing at 1:00 p.m. 3. FortisBC will publish notification of the Workshop and Regulatory Timetable in the form attached as Appendix B to this Order, in local news publications as soon as possible. DATED at the City of Vancouver, in the Province of British Columbia, this 10 Attachments ORDERS/FortisBC 2007-08 CEP&07SDPU BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-97-06 th day of August 2006. BY ORDER Original signed by L.F. Kelsey Commissioner

FortisBC Inc. (“FortisBC”) for Approval of 2007-2008 Capital Expenditure Plan and Review of 2007 System Development Plan Update REGULATORY TIMETABLE ACTION Commission Information Request No. 1 to FortisBC Registration of Intervenors and Interested Parties with the Commission FortisBC Responses to Commission Information Request No. 1 FortisBC Workshop with stakeholders in Kelowna, B.C. Intervenor Information Request No. 1 and Commission Information Request No. 2 to FortisBC FortisBC Responses to Intervenor Information Request No. 1 and Commission Information Request No. 2 Intervenor Written Submissions filed with the Commission and FortisBC FortisBC Written Reply to Intervenor Comments APPENDIX A to Order No. G-97-06 Page 1 of 1 DATE (2006) Monday, August 21 Friday, August 25 Thursday, August 31 Wednesday, September 6 Friday, September 15 Thursday, September 28 Friday, October 6 Friday, October 13

APPENDIX B to Order No. G-97-06 Page 1 of 2 FORTISBC INC. (“FORTISBC”) Approval of 2007-2008 Capital Expenditure Plan Review of 2007 System Development Plan Update NOTICE OF WORKSHOP AND REGULATORY TIMETABLE Workshop Date/Time: Wednesday, September 6, 2006 Commencing at 1:00 p.m. Workshop Location: Grand Okanagan Resort 1310 Water Street. Kelowna, B.C. The Application On July 26, 2006 FortisBC filed its 2007-2008 Capital Expenditure Plan and 2007 System Development Plan Update, and applied for Commission approval of the 2007-2008 Capital Expenditure Plan. The Plan describes capital expenditures of $128.6 million in 2007 and $111.6 million in 2008. FortisBC states the most significant expenditures are to expand and upgrade the transmission and distribution systems to keep pace with load growth, and to continue the ongoing life extension program at its generating plants. The Regulatory Process The Commission has established the following Regulatory Timetable for a Workshop and a written public hearing process to review the 2007-2008 Capital Expenditure Plan and 2007 System Development Plan Update. ACTION DATE (2006) Commission Information Request No. 1 to FortisBC Monday, August 21 Registration of Intervenors and Interested Parties with the Commission Friday, August 25 FortisBC Responses to Information Request No. 1 Thursday, August 31 FortisBC Workshop with stakeholders in Kelowna, B.C. Wednesday, September 6 Intervenor Information Request No. 1 and Commission Information Request No. 2 to FortisBC Friday, September 15 FortisBC Responses to Intervenor Information Request No. 1 and Commission Information Request No. 2 Thursday, September 28 Intervenor Written Submissions filed with the Commission and FortisBC Friday, October 6 FortisBC Written Reply to Intervenor Submissions Friday, October 13

APPENDIX B to Order No. G-97-06 Page 2 of 2 Public Inspection of the Documents The 2007-2008 Capital Expenditure Plan and 2007 System Development Plan Update and supporting materials will be available for inspection at the following locations: FortisBC Inc. British Columbia Utilities Commission Head Office Sixth Floor, 900 Howe Street th 5 Floor 1628 Dickson Avenue Vancouver, B.C. V6Z 2N3 Kelowna, B.C. V1Y 9X1 Telephone: 1-800-663-1385 FortisBC Inc. Internet Trail Office www.fortisbc.com 1290 Esplanade www.bcuc.com Trail, B.C. V1R 4L4 Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Osoyoos, Penticton and Trail, B.C. All submissions and/or correspondence received from active participants or the general public relating to the Application will be placed on the public record and posted to the Commission’s web site. Interventions Persons who expect to actively participate in the FortisBC proceeding should register as Intervenors with the Commission, and should identify the issues that they intend to pursue and the nature and extent of their anticipated involvement in the review process. Persons not expecting to actively participate, but who have an interest in the proceeding should register as Interested Parties. Intervenors and Interested parties are to register in writing, by Friday, August 25, 2006, identifying their interest in the matter and indicating whether they plan to attend the Workshop. Intervenors will each receive a copy of the Application and all correspondence and filed documentation, and should provide an e-mail address if available. Interested Parties will receive a copy of the Executive Summary in the Application, and all Orders and Decisions issued. Further Information For further information, please contact the Commission Secretary or Mr. Robert Rerie, Senior Electrical Engineer as follows: Telephone: (604) 660-4700 Facsimile: (604) 660-1102 E-Mail: Commission.Secretary@bcuc.com Telephone: (B.C. Toll Free) 1-800-663-1385