Orders

BRITISH COL UMBIA UTILITIES COM MISSION ORDER NUMBER G -109-08 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 An Application by FortisBC Inc. for Approval of 2009-2010 Capital Expenditure Plan and Review of 2009 System Development Plan Update BEFORE: A.W.K. Anderson, Panel Chair and Commissioner July 4, 2008 A.A. Rhodes, Commissioner O R D E R WHEREAS: A. On June 27, 2008 FortisBC Inc. (“FortisBC”) filed its 2009-2010 Capital Expenditure Plan (“2009-2010 CEP”) and 2009 System Development Plan Update (“2009 SDP”) and applied to the Commission for approval of the 2009-2010 CEP (the “Application”); and B. In the Application, FortisBC requests approval of its proposed capital expenditures for a two-year period as it did for the 2007/08 Capital Plan. The 2009-2010 CEP totals approximately $178.8 million for 2009 and $181.1 million for 2010; and C. In the 2009 SDP, FortisBC expenditures in the 2009-2010 timeframe increase from $150.3 million as originally scheduled to $251.1 million in the 2009 SDP Update; and D. FortisBC proposes a written hearing process to review the Application; and E. The Commission considers that written public hearing process is required for the review of the 2009-2010 CEP and the 2009 SDP. . . ./2

2 NOW THEREFORE the Commission orders as follows: 1. The Commission establishes a Written Public Hearing process for the review of the 2009-2010 CEP and 2009 SDP, in accordance with the Regulatory Timetable attached as Appendix A. 2. FortisBC is to conduct a Workshop on Tuesday, August 12, 2008 regarding the 2009-2010 CEP and 2009 SDP and the Workshop will be held at the Manteo Resort, 3762 Lakeshore Road, Kelowna, British Columbia. 3. FortisBC will publish, as soon as possible, in display-ad format, a Notice of Application and Workshop in the form attached as Appendix B, in sufficient newspapers in the FortisBC service area to adequately inform the public of the Application. 4. Persons wishing to attend the Workshop should register with the Commission, in writing or by electronic submission, by Friday, July 25, 2008. 5. Intervenors and Interested Parties wishing to participate in the Written Hearing Process should register with the Commission, in writing or by electronic submission, by Wednesday, August 13, 2008. DATED at the City of Vancouver, in the Province of British Columbia, this 9 Attachments Order/G-109-08_FortisBC_2009-10 Capital Expenditure Plan BRITISH COLUMBIA UTILITIES COMMISSION ORDER NUMBER G-109-08 th day of July 2008. BY ORDER Original signed by: A.A. Rhodes, Commissioner

FortisBC Inc. for Approval of 2009-2010 Capital Expenditure Plan and Review of 2009 System Development Plan Update REGULATORY TIMETABLE ACTION Commission Information Request No. 1 FortisBC Workshop Registration with the Commission FortisBC Responses to Commission Information Request No. 1 FortisBC Workshop with Stakeholders at the Manteo Resort in Kelowna, B.C. Registration of Intervenors and Interested Parties with the Commission Intervenor Participant Assistance Budgets Commission Information Request No. 2 and Intervenor Information Request No. 1 FortisBC Responses to Commission Information Request No. 2 and Intervenor Information Request No. 1 FortisBC Final Submission Intervenor Final Submission FortisBC Reply Submission APPENDIX A to Order No. G-109-08 Page 1 of 1 DATE (2008) Tuesday, July 15 Friday, July 25 Thursday, August 7 Tuesday, August 12 Wednesday, August 13 Friday, August 15 Thursday, August 28 Thursday, September 11 Tuesday, September 16 Monday, September 22 Monday, September 29

APPENDIX B to Order No. G-109-08 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 NOTICE OF APPLICATION AND WORKSHOP An Application by FortisBC Inc. for Approval of 2009-2010 Capital Expenditure Plan and Review of 2009 System Development Plan Update DATE: Tuesday, August 12, 2008 TIME: 9:00 a.m. – 2:00 p.m. LOCATION: Manteo Resort 3762 Lakeshore Road Kelowna, B.C. THE APPLICATION On June 27, 2008 FortisBC filed its 2009-2010 Capital Expenditure Plan (“2009-2010 CEP”) and 2009 System Development Plan Update (“2009 SDP”), and applied for Commission approval of the 2009-2010 CEP. FortisBC states that the most significant areas of expenditure are those required to expand and upgrade the bulk transmission and distribution system to keep pace with load growth, and to continue the ongoing program of life extension at the Company’s generating plants. The 2009-2010 CEP will also address the substation and transmission line siting issues for new and upgraded facilities. The 2009-2010 CEP describes capital expenditures of $178.8 million in 2009 and $181.1 million in 2010. Expenditures in the 2009-2010 timeframe increase from $150.3 million as originally scheduled to $251.1 million in the 2009 SDP. THE REGULATORY PROCESS The Commission has established a Regulatory Timetable for a Workshop to be held at the Manteo Resort in Kelowna, B.C., Tuesday, August 12, 2008 and a Written Public Hearing process to review the 2009-2010 CEP and 2009 SDP. WORKSHOP Persons wishing to attend the FortisBC Workshop should notify the Commission, in writing or by electronic submission, no later than Friday, July 25, 2008.

APPENDIX B to Order No. G-109-08 Page 2 of 2 INTERVENTIONS Persons who expect to actively participate in the FortisBC proceeding should register as Intervenors with the Commission, in writing or by electronic submission, no later than Wednesday, August 13, 2008. Intervenors are requested to identify their interest in the Application. Intervenors will each receive a copy of the Application and all correspondence and filed documentation in accordance with the Commission’s Document Filing Protocols. Persons not expecting to actively participate, but who have an interest in the proceeding, should register as Interested Parties with the Commission, in writing, by the same date. Interested Parties will receive a copy of the Applicant’s Executive Summary and the Commission’s Decision when issued. 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 at www.bcuc.com. The Commission Panel in a proceeding may award costs for participation, pursuant to the Participant Assistance/Cost Award Guidelines, under Section 118 of the Utilities Commission Act. The Guidelines are available at www.bcuc.com/Guidelines.aspx. Participants intending to apply for participant assistance must file a budget by Friday, August 15, 2008. PUBLIC INSPECTION OF THE DOCUMENTS The 2009-2010 CEP and 2009 SDP 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 1975 Springfield Road, Suite 100 Vancouver, B.C. V6Z 2N3 Kelowna, B.C. V1Y 7V7 Telephone: 1-800-663-1385 FortisBC Inc. Internet Trail Office www.fortisbc.com 1290 Esplanade www.bcuc.com Trail, B.C. V1R 4L4 Public Libraries Castlegar, Creston, Grand Forks, Kelowna, Oliver, Osoyoos, Penticton and Trail, B.C. FURTHER INFORMATION For further information, please contact Ms. Erica Hamilton, Commission Secretary as follows: Telephone: (604) 660-4700 B.C. Toll Free 1-800-663-1385 Facsimile: (604) 660-1102 E-Mail: commission.secretary@bcuc.com