Orders

LETTER NO. L-8-08 SIXTH FLOOR, 900 HOWE STREET, BOX 250 ERICA M. HAMILTON 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. 24600 VIA E-MAIL regulatory.affairs@terasengas.com March 18, 2008 Mr. Scott Thomson Vice President, Regulatory Affairs and Chief Financial Officer Terasen Gas Inc. 16705 Fraser Highway Surrey, B.C. V4N 0E8 Dear Mr. Thomson: Re: Terasen Gas Inc. (“Terasen Gas”) CEG Energy’s letter dated March 13, 2008 CEG Energy’s Total Delivery Requirements for the Period August 1, 2007 through October 31, 2007 The Essential Services model is an integral component of the Customer Choice Program and it is vital that the calculation of the Daily Commodity Quantity (“DCQ”) be as transparent as possible. In fact, the Report for British Columbia Utilities Commission April 8 Meeting indicated under Operational Issues, Section 3 that a validation of the DCQ is necessary so that the Gas Marketers can gain a better understanding of the algorithm and the input factors such as weather and customer usage patterns. The Commission believes that it is essential for the success of the Customer Choice Program that Gas Marketers have confidence in the calculation of the DCQ amounts. The current dispute with CEG Energy Options (“CEG”) as outlined in CEG’s letter dated March 13, 2008 highlights a specific problem but it is based on a fundamental concern to the majority of Gas Marketers. Therefore an exchange of information between this Gas Marketer and Terasen Gas that can lead to a better understanding of the algorithm is the preferred method to resolve this dispute. As outlined by CEG, there were minimal changes in commercial customer additions or deletions in the period May to August and minor changes in November. In CEG’s graph on page 2 of its letter dated March 13, 2008 (attached) there is obviously an anomaly that appears for the August–October, 2007 period. CEG proposes that this is the result of incorrect data input for price group CEG015. Therefore, the Commission requests that Terasen Gas comply with CEG’s proposal: “CEG requests that the BCUC direct Terasen to recalculate the CEG delivery requirements for the August period utilizing the CEG customers under contract for that period and utilizing data factor adjustments that were utilized to determine CEG’s delivery requirements for November 2007. CEG also requests that all the data used for this revised allocation are provided to CEG and the Commission for review.” …/2

LETTER NO. L-8-08 2 Terasen Gas is requested to provide the DCQ calculation for each CEG customer group and the total DCQ for CEG. Yours truly, Original signed by: Erica Hamilton RB/rt Attachment cc: Mr. Kirby Morrow, CEG Energy Options (kmorrow@cegenergy.com) Mr. Kevin Thrasher, Lawson Lundell LLP(kthrasher@lawsonlundell.com) Gas Marketers Licences/Gen Cor/CEG Energy’s Total Delivery Requirements