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LETTER NO. L-70-07 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. 21884 VIA EMAIL September 17, 2007 cdonohue@png.ca Mr. C.P. Donohue Director, Regulatory Affairs & Gas Supply Pacific Northern Gas Ltd. 950 - 1185 West Georgia Street Vancouver, B.C. V6E 4E6 Dear Mr. Donohue: Re: Pacific Northern Gas Ltd. Pacific Northern Gas (N.E.) Ltd. Fort St. John/Dawson Creek Third Quarter 2007 Report on Gas Supply Costs and Gas Cost Variance Accounts Further to your September 7, 2007 letter recommending that the current Gas Supply Charges and Gas Cost Variance Account riders for PNG-West and PNG (N.E.) for Fort St. John/Dawson Creek systems continue at their present levels effective October 1, 2007, the Commission accepts your recommendation. In the Granisle propane division the Commission accepts that the current propane commodity rate and the GCVA commodity debit rate rider should be maintained. The Commission recognizes the continued volatility of current natural gas prices, the forward price strip and propane prices. The GCVA riders and gas commodity prices will continue to be monitored and reviewed in PNGs Fourth Quarter 2007 Report. Yours truly, Original signed by Robert J. Pellatt RB/dlf PNG-PNGNE/Cor/PNGW-FJS-DC Third Qtr Gas Supply Costs
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