LETTER NO. L‐44‐08 ERICA M. HAMILTON SIXTH FLOOR, 900 HOWE STREET, BOX 250 COMMISSION SECRETARY VANCOUVER, B.C. CANADA V6Z 2N3 Commission.Secretary@bcuc.com TELEPHONE: (604) 660‐4700 web site: http://www.bcuc.com BC TOLL FREE: 1‐800‐663‐1385 FACSIMILE: (604) 660‐1102 VIA E‐MAIL September 12, 2008 Mr. Tom Loski Mr. David Bennett Vice President, Finance and Regulatory Affairs Vice President, Regulatory Affairs & General Counsel Terasen Gas Inc. Regulatory Affairs Department Terasen Gas (Vancouver Island) Inc. FortisBC Inc. 16705 Fraser Highway 1290 Esplanade Surrey, B.C. V3S 2X7 PO Box 130 regulatory.affairs@terasengas.com Trail, BC V1R 4L4 regulatory@fortisbc.com Mr. C.P. Donohue Director, Regulatory Affairs & Gas Supply Pacific Northern Gas Ltd. 950 ‐ 1185 West Georgia Street Vancouver, B.C. V6E 4E6 cdonohue@png.ca Dear Sirs: Re: Return on Common Equity for a Low‐Risk Benchmark Utility Change of Source Data Used in Calculation This letter is to advise you that the Commission is considering changing the source of data used to calculate the allowable rate of return on common equity for a low‐risk benchmark utility (the “ROE”). The ROE calculation requires data on the yield spread between 10‐ and 30‐year bonds. Historically, these data have been obtained from figures published in the Financial Post. After an initial review, the Commission believes that the data may be more efficiently obtained from the Bank of Canada website. Due to a decrease in the level of detail in the data reported in the Financial Post in recent years, the Commission also believes that using the Bank of Canada figures may result in greater data transparency and accuracy. The Commission invites your comments on the proposal. As the trading days during October will be those of consequence to the 2009 ROE calculations, please submit your comments to the Commission by Tuesday, September 23, 2008. Yours truly, Original signed by Erica M. Hamilton TR/cms Orders/L-44-08_ROE Change Source Data-Bank of Canada
2 cc: Mr. R. Brian Wallace Bull, Housser & Tupper Mr. Jim Quail Executive Director The British Columbia Public Interest Advocacy Centre Ms. Janet Fraser Director, Regulatory Affairs British Columbia Transmission Corporation Ms. Joanna Sofield Chief Regulatory Officer British Columbia Hydro and Power Authority BCUC Regulated Utilities
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