Orders

BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -160-07 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 a Certificate of Public Convenience and Necessity for the Okanagan Transmission Reinforcement Project BEFORE: A.W.K. Anderson, Panel Chair and Commissioner N.F. Nichols, Commissioner December 18, 2007 O R D E R WHEREAS: A. On December 14, 2007 FortisBC Inc. (“FortisBC”) applied (the “Application”) to the British Columbia Utilities Commission (the “Commission”) for a Certificate of Public Convenience and Necessity (“CPCN”) for the Okanagan Transmission Reinforcement Project (the “Project”); and B. FortisBC states that the Project is estimated to cost $141.4 million and is required to alleviate system constraints, enhance reliability, and serve emerging load in the Okanagan region of FortisBC’s service territory; and C. The Project will replace the existing 28 kilometer 161 kilovolt (“kV”) transmission line between Vaseux Lake and Penticton with two new 230 kV lines in double circuit configuration and upgrade 11 kilometers of 161 kV transmission line to 230 kV between Vaseux Lake and Oliver, all within the existing line corridor. Other major project components are upgrades to Vaseux Lake Terminal station near Oliver and RG Anderson Terminal station in Penticton to accommodate the voltage change from 161 to 230 kV, the construction of a new Bentley Terminal station approximately 300 meters from the existing Oliver Terminal station on Osoyoos Indian Band land, conversion of the Oliver Terminal station to a distribution substation, and installation of capacitor banks at the FA Lee and DG Bell Terminal stations in Kelowna; and …/2

2 D. The Commission considers that a Procedural Conference is required to hear submissions on the regulatory process for review of the Application. NOW THEREFORE the Commission orders as follows: 1. A Procedural Conference regarding the regulatory process for the review of the Project will be held on Wednesday, February 27, 2008 commencing at 1:00 p.m. at the Penticton Lakeside Resort and Convention Centre in Penticton, BC to address procedural matters which will include, but may not be limited to, the following: a) Format for Hearing b) Regulatory Timetable c) Issues List 2. The initial Regulatory Timetable for the Procedural Conference and review of the Application is attached as Appendix A. The Commission will issue the Regulatory Timetable for the proceeding following the Procedural Conference. 3. FortisBC shall publish the Notice of Application and Procedural Conference that is attached as Appendix B, in sufficient newspapers in the FortisBC service area and local newspapers in the Oliver-Penticton area to adequately inform the public of the Project, as soon as it is possible to do so. DATED at the City of Vancouver, in the Province of British Columbia, this 18 Attachments Orders/G-160-07_FortisBC OTR CPCN Procedural Conf BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-160-07 th day of December 2007. BY ORDER Original signed by: A.W. Keith Anderson Panel Chair and Commissioner

FortisBC Inc. for a Certificate of Public Convenience and Necessity for the Okanagan Transmission Reinforcement Project NOTICE OF APPLICATION AND PROCEDURAL CONFERENCE REGULATORY TIMETABLE ACTION Commission Information Request No. 1 Registration of Intervenors and Interested Parties with the Commission FortisBC Responses to Information Request No. 1 Procedural Conference APPENDIX A to Order No. G-160-07 Page 1 of 1 DATE (2008) Tuesday, January 22 Friday, February 1 Monday, February 18 Wednesday, February 27

APPENDIX B to Order No. G-160-07 Page 1 of 2 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 FortisBC Inc. (“FortisBC”) for a Certificate of Public Convenience and Necessity (“CPCN”) for the Okanagan Transmission Reinforcement Project NOTICE OF APPLICATION AND PROCEDURAL CONFERENCE DATE: Wednesday, February 27, 2008 TIME: 1:00 p.m. LOCATION: Penticton Lakeside Resort and Convention Centre 21 Lakeshore Drive W. Penticton, BC THE APPLICATION On December 14, 2007 FortisBC applied to the British Columbia Utilities Commission (“the Commission”) for approval of a Certificate of Public Convenience and Necessity (the “Application”) for the Okanagan Transmission Reinforcement Project (the “OTR Project”). The proposed OTR Project will complete a 230 kilovolt (“kV”) transmission system in the Okanagan by replacing the existing 28 kilometer 161 kV transmission line between Vaseux Lake and Penticton with two new 230 kV lines in double circuit configuration and upgrading 11 kilometers of 161 kV transmission line to 230 kV between Vaseux Lake and Oliver, all within the existing line corridor. Other major project components are upgrades to Vaseux Lake Terminal station near Oliver and RG Anderson Terminal station in Penticton, the construction of a new Bentley Terminal station approximately 300 meters from the existing Oliver Terminal station on Osoyoos Indian Band land, conversion of the Oliver Terminal station to a distribution substation, and installation of capacitor banks at the FA Lee and DG Bell Terminal stations in Kelowna. The OTR Project is estimated to cost $141.4 million and is to be placed in service by November 2010. The Application states that the OTR Project is required to alleviate system constraints, enhance reliability, and serve emerging load in the Okanagan region of FortisBC’s service territory. THE REGULATORY PROCESS The Commission will hold a Procedural Conference on Wednesday, February 27, 2008 commencing at 1:00 p.m. at the Penticton Lakeside Resort and Convention Centre in Penticton, BC to hear submissions on the regulatory process for review of the Application.

APPENDIX A to Order No. G-160-07 Page 2 of 2 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. Intervenors will each receive a copy of the Application and all correspondence and filed documentation, and should provide an e-mail address if possible. Persons not expecting to actively participate, but who have an interest in the proceeding should register as Interested Parties. Interested Parties will receive a copy of the Executive Summary in the Application, and all Orders and Decisions issued. Intervenors and Interested Parties should register in writing, no later than Friday, February 1, 2008. Notification by mail, courier delivery, fax or e-mail is acceptable. 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: British Columbia Utilities Commission, Sixth Floor, 900 Howe Street Vancouver, BC V6Z 2N3 Telephone: 1-800-663-1385 FortisBC Inc., Head Office FortisBC Inc., Trail Office 1975 Springfield Road, Suite 100 1290 Esplanade Kelowna, BC V1Y 7V7 Trail, BC V1R 4L4 Internet www.fortisbc.com and www.bcuc.com Public Libraries Kelowna, Oliver, and Penticton, BC FURTHER INFORMATION For further information, please contact Ms. Erica Hamilton, Commission Secretary, or Mr. Brian Williston, Director, Engineering and Energy Markets, as follows: Telephone: (604) 660-4700 Telephone (BC Toll Free): 1-800-663-1385 Facsimile: (604) 660-1102 E-mail: Commission.Secretary@bcuc.com