Orders

BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -31-08 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 British Columbia Hydro and Power Authority (“BC Hydro”) 2008 Residential Inclining Block Application (“RIB Application”) BEFORE: A.J. Pullman, Panel Chair R.J. Milbourne, Commissioner February 29, 2008 L.A. O’Hara, Commissioner O R D E R WHEREAS: A. On February 26, 2008 BC Hydro filed an application with the Commission, pursuant to sections 58 to 61 of the Utilities Commission Act, for the review and approval of a new, two-step, inclining block rate structure for its residential customers; and B. The RIB Application contains a proposed restructuring of rates to BC Hydro’s residential customers. The objective of the proposal is to encourage additional electricity conservation, a goal that was prescribed in certain Policy Actions to the most recent provincial energy plan, the 2007 Energy Plan; and C. Specifically, BC Hydro aims to start contributing to the 2007 Energy Plan’s 2020 conservation goal, to accelerate customer awareness of the increasing cost of electricity, and to gain experience with residential customer demand response to rates in order to inform future rate design proposals; and D. The RIB Application is revenue neutral on a forecast consumption basis at the residential class level. The proposed two-step rate has the Step 1 threshold set at 1,600 kWh per bi-monthly billing period and under the threshold, customers pay a lower per-unit rate for electricity consumption. The Step-2 Rate will be set annually based on the amount that is necessary to allow the recovery of revenue requirement of the residential class, less the amount generated by the Step-1 Rate and the Basic Charge; and E. On February 20, 2008 BC Hydro filed with the Commission its F2009/F2010 Revenue Requirements Application (“F09/F10 RRA”), seeking interim rate relief as described therein. Also, on February 20, 2008 BC Hydro applied to the Commission for reconsideration of certain elements of its October 26, 2007 Decision regarding BC Hydro’s Rate Design Application (“Rate Rebalancing Reconsideration Application”); and F. On February 22, 2008 BC Hydro applied for interim and final Orders regarding the pricing of certain rate schedules application to its transmission service customers to reflect the cost of new supply as indicated by the results of its F2006 Call for Tender process (“TSR Re-pricing Application”); and . . ./2

BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-31-08 2 G. The Commission issued Letter No. L-05-08 dated February 22, 2008 establishing a Regulatory Timetable for the Rate Rebalancing Reconsideration Application that included Intervenor Argument, BC Hydro Reply Argument, and Oral Phase of Argument, if required. The Letter also established a Regulatory Timetable for the F09/F10 RRA and the TSR Re-pricing Application to address, by written submission, the BC Hydro request to implement interim rates effective April 1, 2008; and H. By Order No. G-21-08 dated February 25, 2008 the Commission established the regulatory timetable for the F09/F10 RRA. The Order also established a Procedural Conference to hear submissions on the regulatory process for the review of the (i) F09/F10 RRA, (ii) the TSR Re-pricing Application, and (iii) the RIB Application. The Procedural Conference regarding the regulatory process for the review of the above three Applications will be held on Monday, April 28, 2008, commencing at 9:00 a.m., in the Commission’s Hearing Room on the 12 th Floor, 1125 Howe Street, Vancouver, B.C.; and I. In its F09/F10 RRA, BC Hydro proposes a regulatory process to address its RIB Application, the TSR Re- pricing Application, and the F09/F10 RRA by a preliminary process order that establishes a F09/F10 RRA workshop, a RIB/TSR workshop, Commission Information Requests (“IRs”) on the three applications, registration of Intervenors and Interested Parties, Intervenor IRs, BC Hydro responses to all IRs, and a Procedural Conference on or about Monday, April 28, 2008 to consider further process for all three applications, including consideration of which applications might be resolved through negotiated settlement or written process; and J. On February 28, 2008 the Commission issued Order No. G-28-08 confirming the date and location of the Procedural Conference and directing BC Hydro to publish a Notice of Applications and a Procedural Conference date of April 28, 2008 for the F09/F10 RRA, the TSR Price Re-pricing Application, and the RIB Application; and K. The Commission has also reviewed BC Hydro’s proposed preliminary regulatory timetable for the review process for the RIB Application and considers that an Order is required. NOW THEREFORE the Commission orders as follows: 1. BC Hydro is to hold a Workshop with respect to the RIB Application on Thursday, March 13, 2008, commencing at 9:00 a.m. in the Commission’s Hearing Room on the 12 th Floor, 1125 Howe Street, Vancouver, B.C. 2. After the Procedural Conference on April 28, 2008 pursuant to Commission Order No. G-28-08, the Commission will issue a further procedural Order and Regulatory Timetable for the review of the RIB Application. …/3

BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-31-08 3 3. The deadlines for the first round of Commission and Intervenors’ IRs to BC Hydro and the responses from BC Hydro are set out in the Regulatory Timetable attached as Appendix A to this Order. 4. BC Hydro is to provide a copy of the Commission Order and the Regulatory Timetable attached as Appendix A to this Order to the stakeholders it had engaged in the preparation of the RIB Application and to Intervenors who participated in the Commission’s review of BC Hydro’s F07/F08 revenue requirement application and the 2007 Rate Design Application. 5. The RIB Application with any supporting materials will be made available for inspection at the BC Hydro Head Office in Vancouver and BC Hydro offices in Burnaby, Fort St. John, Kamloops, Surrey, Nanaimo, North Vancouver, Prince George, Salmon Arm, Vernon and Victoria. The materials will also be made available on BC Hydro website at http://www.bchydro.com and on the BCUC website at http://www.bcuc.com. 6. Intervenors and Interested Parties should register to participate in the Commission’s review of the RIB Application with the Commission, in writing or by online web registration, by Thursday, March 20, 2008 and advise whether they will attend the Procedural Conference. Intervenors should specifically state the nature of their interest in the RIB Application and identify generally the nature of the issues that they intend to pursue during the RIB Application proceeding and the nature and extent of their anticipated involvement in the review process or processes. 7. Intervenors intending to apply for participant assistance must submit a budget estimate by Monday, May 12, 2008, consistent with the Commission’s Participant Assistance/Cost Award (“PACA”) Guidelines and Order No. G-72-07. Copies are available upon request or can be downloaded from the BCUC web site at http://www.bcuc.com. The RIB Application workshop will be eligible for PACA funding as a proceeding day. DATED at the City of Vancouver, in the Province of British Columbia, this 29 th day of February 2008. BY ORDER Original signed by: A.J. Pullman Panel Chair Order/G-31-08_BCH_RIB Application-Regulatory Timetable

SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA web site: http://www.bcuc.com British Columbia Hydro and Power Authority (“BC Hydro”) Residential Inclining Block Application (“RIB Application”) REGULATORY TIMETABLE ACTION RIB Application Workshop Commission to issue Information Requests to BC Hydro (BCUC IR No.1) Deadline for the registration of Intervenors and Interested Parties Intervenor IRs to BC Hydro (Intervenor IR No. 1) BC Hydro Responses to IRs from BCUC and Intervenors Procedural Conference Deadline for Participant Assistance/Cost Award Submission of Budget Estimate APPENDIX A To Order G-31-08 Page 1 of 1 TELEPHONE: (604) 660-4700 BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 Date (2008) Thursday, March 13, commencing at 9:00 a.m. Tuesday, March 18 Thursday, March 20 Tuesday, March 25 Friday, April 18 Monday, April 28, commencing 9:00 a.m. Monday, May 12