LETTER NO. L-6-06 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. 10687 VIA E-MAIL regulatory.affairs@terasengas.com January 25, 2006 TGI_Chetwynd Document A-3 Mr. Scott Thomson Vice President, Finance and Regulatory Affairs Terasen Gas Inc. 16705 Fraser Highway Surrey, B.C. V3S 2X7 Dear Mr. Thomson: Re: Terasen Gas Inc. Application for Approval of Operating Terms for the Supply and Distribution of Natural Gas within the District of Chetwynd (“Chetwynd”) On July 19, 2005, Terasen Gas Inc. (“Terasen Gas”) applied pursuant to Section 32 of the Utilities Commission Act (“the Act”) for approval of Operating Terms for the supply and distribution of natural gas service within the boundaries of Chetwynd. The Operating Terms proposed for Chetwynd did not have a fixed term nor did it contain a provision for the payment of Franchise Fees (the “Application”). On September 2, 2005, Chetwynd filed a Reply to the Application. In accordance with the regulatory timetable established by Commission Letters No. L-82-05 and L-86-05, Terasen Gas filed a response on October 21, 2005 (the “Terasen Response”) and Chetwynd filed its response on November 4, 2005 (the “Chetwynd Response”). The Terasen Response included a Revised Application that contained a provision for Operating Fees of 3 percent and a term of 21 years effective from January 1, 2006 to December 31, 2026. The Chetwynd Response proposed that if the Commission approves the new Operating Terms proposed by Terasen Gas then the Commission should also extend the expired Operating Agreement to the end of 2005. By email dated January 13, 2006 (enclosed), Terasen Gas advised the Commission that Terasen Gas continued to charge the 3 percent Operating Fee to its customers in Chetwynd in anticipation that the new Operating Agreement will contain a provision for a 3 percent Operating Fee or Franchise Fee. Terasen Gas stated that it is prepared to refund the Operating Fees collected from July 1, 2005 if an Operating Fee is not included in the new Operating Agreement. The Commission requires a submission from Terasen Gas and Chetwynd regarding the proposed commencement date of a new Operating Agreement, i.e. should the commencement date of a new Operating Agreement be July 19, 2005 (the date of the Terasen Gas Application), January 1, 2006 (the date proposed in Terasen Gas’ Revised Application) or some other date? A response from Terasen Gas is required by January 31, 2006 and from Chetwynd by February 7, 2006. Yours truly, Original signed by: Robert J. Pellatt Enclosure cc: Mr. Colin Stewart Staples McDannold Stewart Mr. Mike Redfearn, Chief Administrative Officer District of Chetwynd PF/TGI_District Chetwynd Operatng Agreement/A-3_Request for Submission TGI & Chetwynd
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