Orders

BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -106-06 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 Application by Fortis Pacific Holdings Inc. (“FPHI”), FortisBC Inc. (“FortisBC”) and Princeton Light and Power Company, Limited (“PLP”) for Approval to Transfer PLP Shares and Assets to FortisBC and the Wind Up of PLP BEFORE: L.F. Kelsey, Commissioner August 31, 2006 O R D E R WHEREAS: A. Commission Order No. G-47-05, dated May 19, 2005, approved the purchase of all the issued and outstanding shares of PLP by Fortis Inc. and the transfer to FPHI; and B. On August 18, 2006, FortisBC, FPHI and PLP (the “Applicants”) applied, pursuant to sections 41, 50, 52, 53 and 54 of the Utilities Commission Act (“Act”), and subject to the necessary consent of the Lieutenant Governor in Counsel, for approval of the following (“the Application ”): • The acquisition by FortisBC of a reviewable interest in PLP through the purchase of all the issued and outstanding shares in the capital of PLP (the “PLP Shares”) to be effective December 31, 2006; • The registration on the books of PLP of the transfer of the PLP Shares from FPHI to FortisBC to be effective December 31, 2006; • The issuance of shares in the capital of FortisBC to FPHI in consideration and for the value of the transfer of all of the PLP Shares to FortisBC to be effective December 31, 2006; • The transfer of all of the assets of PLP from PLP to FortisBC to be effective January 1, 2007; • The corporate winding up of PLP to be effective on January 1, 2007; • The discontinuance of all electricity service operations by PLP effective upon the assumption by FortisBC of such electricity service operations, on January 1, 2007; • The application of PLP’s current Electric Tariff by FortisBC to (i) customers who are PLP customers on December 31, 2006, and (ii) persons who become customers after December 31, 2006 who, but for the transfer of the assets of PLP to FortisBC, would have been customers of PLP, in each case until October 1, 2007; . . ./2

BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-106-06 2 • The application of FortisBC’s Electric Tariff in effect on October 1, 2007 by FortisBC to (i) customers who are PLP customers on December 31, 2006, and (ii) persons who become customers after December 31, 2006 who, but for the transfer of the assets of PLP to FortisBC, would have been customers of PLP, on October 1, 2007 onward; and C. The Applicants further request the Commission to submit a report to the Lieutenant Governor in Council, pursuant to subsection 53(1)(a)(i) of the Act, confirming the Commission’s opinion that the above referenced transaction would be beneficial and in the public interest; and D. FortisBC indicated that based on the submissions filed, the Commission should determine that the transfer of assets and wind up of PLP into FortisBC is beneficial and in the public interest; however, if public input is required by the Commission, FortisBC proposes to review this Application in conjunction with FortisBC’s 2006 Annual Review and 2007 Revenue Requirements Workshop which is expected to take place in November 2006; and E. The Commission has considered the comments received to date from FortisBC’s and PLP’s stakeholders. NOW THEREFORE the Commission orders as follows: 1. The Application will be examined by way of a written public hearing process and the Regulatory Agenda, attached as Appendix A, has been established. 2. FortisBC and PLP are to provide a copy of this Order, by facsimile or E-mail if possible, to all Intervenors and Interested Parties registered in FortisBC’s 2006 Revenue Requirements Application and PLP’s 2006 Revenue Requirements Application, as well as stakeholders involved in the Application for the disposition of the PLP shares to Fortis Inc., as soon as possible. 3. FortisBC and PLP are to arrange for publication of the Notice of Written Public Hearing, attached as Appendix B to this Order, as soon as possible in such appropriate local news publications in their respective service areas so as to provide adequate notice to the public. 4. The Application 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, BC V6Z 2N3 Kelowna, B.C. V1Y 9X1 Telephone: 1-800-663-1385 FortisBC Inc. Trail Office 1290 Esplanade Trail, B.C. V1R 4L4

3 Princeton Light and Power Company, Limited Princeton Office 231 Bridge Street Princeton BC V0X 1W0 5. Intervenors and Interested Parties should inform the Commission, in writing or register on-line via the Commission’s website at www.bcuc.com, by Tuesday, September 19, 2006 of their intention to intervene in the proceeding, or become Interested Parties. Registered Intervenors will receive from FortisBC copies of the Application and all correspondence and filed documentation. Interested Parties will receive the Application’s Executive Summary and copies of all Orders issued. 6. Intervenors intending to apply for participant assistance must submit a budget estimate by Friday, September 22, 2006, consistent with the Commission’s Participant Assistance/Cost Award Guidelines and Order No. G-15-04. Copies are available upon request or can be downloaded from the Commission’s web site at http://www.bcuc.com>Guidelines & Resources>Guidelines. DATED at the City of Vancouver, in the Province of British Columbia, this 1 Attachments Orders/FortisBC_PLP Acquisition - RegTimetable BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-106-06 Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Penticton and Trail, BC st day of September 2006. BY ORDER Original signed by: L.F. Kelsey Commissioner

SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA web site: http://www.bcuc.com Application by Fortis Pacific Holdings Inc. (“FPHI”), FortisBC Inc. (“FortisBC”) And Princeton Light and Power Company, Limited (“PLP”) for Approval To Transfer PLP Shares and Assets to FortisBC and the Wind Up of PLP REGULATO Action Registration of Intervenors and Interested Parties with the Commission Participant Assistance Budgets from Intervenors Commission and Intervenor Information Request No. 1 FortisBC Responses to Information Request No. 1 Intervenor Written Submissions filed with the Commission and FortisBC FortisBC Written Reply to Intervenor Comments APPENDIX A to Order No. G-106-06 Page 1 of 1 TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 RY AGENDA Date Tuesday, September 19, 2006 Friday, September 22, 2006 Tuesday, October 3, 2006 Tuesday, October 17, 2006 Tuesday, October 24, 2006 Tuesday, October 31, 2006

APPENDIX B to Order No. G-106-06 Page 1 of 3 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660-4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 web site: http://www.bcuc.com An Application by Fortis Pacific Holdings Inc. (“FPHI”), FortisBC Inc. (“FortisBC”) and Princeton Light and Power Company, Limited (“PLP”) for Approval To Transfer PLP Shares and Assets to FortisBC and the Wind Up of PLP NOTICE OF WRITTEN PUBLIC HEARING _______________________________________________________________________ THE APPLICATION On August 18, 2006, FortisBC, FPHI and PLP (“the Applicants”) applied, pursuant to sections 41, 50, 52, 53 and 54 of the Utilities Commission Act (“Act”) and subject to the necessary consent of the Lieutenant Governor in Counsel, for approval of the following (“the Application ”): • The acquisition by FortisBC of a reviewable interest in PLP through the purchase of all the issued and outstanding shares in the capital of PLP (the “PLP Shares”) to be effective December 31, 2006; • The registration on the books of PLP of the transfer of the PLP Shares from FPHI to FortisBC to be effective December 31, 2006; • The issuance of shares in the capital of FortisBC to FPHI in consideration and for the value of the transfer of all of the PLP Shares to FortisBC to be effective December 31, 2006; • The transfer of all of the assets of PLP from PLP to FortisBC to be effective January 1, 2007; • The corporate winding up of PLP to be effective on January 1, 2007; • The discontinuance of all electricity service operations by PLP effective upon the assumption by FortisBC of such electricity service operations, on January 1, 2007; • The application of PLP’s current Electric Tariff by FortisBC to (i) customers who are PLP customers on December 31, 2006, and (ii) persons who become customers after December 31, 2006 who, but for the transfer of the assets of PLP to FortisBC, would have been customers of PLP, in each case until October 1, 2007; and • The application of FortisBC’s Electric Tariff in effect on October 1, 2007 by FortisBC to (i) customers who are PLP customers on December 31, 2006, and (ii) persons who become customers after December 31, 2006 who, but for the transfer of the assets of PLP to FortisBC, would have been customers of PLP, on October 1, 2007 onward. The Applicants further request the Commission to submit a report to the Lieutenant Governor in Council pursuant to subsection 53(1)(a)(i) of the Act confirming the Commission’s opinion that the above referenced transaction would be beneficial and in the public interest.

THE REGULATORY PROCESS The Commission has established the following Regulatory Timetable for a written public hearing process to review this application. ACTION Registration of Intervenors and Interested Parties with the Commission Commission and Intervenor Information Request No. 1 FortisBC Responses to Information Request No. 1 Intervenor Written Submissions filed with the Commission and FortisBC FortisBC Written Reply to Intervenor Comments INTERVENTIONS FortisBC is to provide copies of the Application to all parties wishing to participate in the Written Public Hearing process. Those persons wishing to participate are to advise the Commission Secretary of their intention to do so no later than Tuesday, September 19, 2006. Notification by mail, courier delivery, fax or e-mail is acceptable. Intervenors will receive copies of the Applicant and filed documentation and should provide an E-mail address, if available. 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. PUBLIC INSPECTION OF THE DOCUMENTS The Application and supporting materials will be available for inspection at the following locations: FortisBC Inc. Head Office Fifth Floor 1628 Dickson Avenue Kelowna, B.C. V1Y 9X1 FortisBC Inc. Trail Office 1290 Esplanade Trail, B.C. V1R 4L4 Princeton Light and Power Company, Limited Princeton Office 231 Bridge Street Princeton BC V0X 1W0 APPENDIX B to Order No. G-106-06 Page 2 of 3 DATE (2006) Tuesday, September 19 Tuesday, October 3 Tuesday, October 17 Tuesday, October 24 Tuesday, October 31 British Columbia Utilities Commission Sixth Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Telephone: 1-800-663-1385 Internet www.fortisbc.com www.bcuc.com Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Penticton and Trail, BC

For further information, please contact the Commission Secretary, Mr. Robert Pellatt or Ms. Fong Kwok, Financial Analyst as follows: Commission Secretary Telephone: (604) 660-4700 Facsimile: (604) 660-1102 E-mail: Commission.Secretary@bcuc.com BC Toll Free: 1-800-663-1385 APPENDIX B to Order No. G-106-06 Page 3 of 3 Ms. Fong Kwok Telephone: (604) 660-0718