Orders

LETTER NO. L-18-06 ROBERT J. PELLATT SIXTH FLOOR, 900 HOWE STREET, BOX 250 COMMISSION SECRETARY VANCOUVER, B.C. CANADA V6Z 2N3 Commission.Secretary@bcuc.com TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 Log No. 7567, 10042 VIA E-MAIL Stirling.Bates@gov.bc.ca May 5, 2006 Mr. Stirling M. Bates Director, Regulatory Policy Ministry of Energy, Mines and Petroleum Resources Oil and Gas Policy Branch, Oil and Gas Division 5 th Floor, 1810 Blanshard Street PO Box 9318, Stn Prov Gov’t Victoria, BC V8W 9N3 Dear Mr. Bates: Re: Terasen Gas (Squamish) Inc. Review of 2003 and 2004 Actual Results Pursuant to the Squamish Rate Stabilization Agreement Terasen Gas (Squamish) Inc. (“Terasen Squamish”) filed its 2003 actual results on October 15, 2004 and its 2004 actual results on May 6, 2005. The Commission has reviewed the Terasen Squamish 2003 and 2004 actual results pursuant to the Squamish Rate Stabilization Agreement (“Squamish RSA”). The 2003 and 2004 actual results are reasonable and in accordance with Section 3 of the Squamish RSA, the April 1997 Settlement Agreement and the return on common equity allowed for Terasen Squamish by Commission Order No. G-85-98 and Letters No. L-46-02 and L-57-03 for 2003 and 2004, respectively. Yours truly, Original signed by Robert J. Pellatt DC/dg cc: Mr. Scott A. Thomson, VP, Finance & Regulatory Affairs & CFO Terasen Gas (Squamish) Inc. Email: regulatory.affairs@terasengas.com Mr. Paul Wieringa, Executive Director, Oil & Gas Division Ministry of Energy, Mines & Petroleum Resources Email: paul.wieringa@gov.bc.ca TGS/Cor/L-18-06_2003-04 Review-RSA