Orders

LETTER NO. L-35-08 SIXTH FLOOR, 900 HOWE STREET, BOX 250 ERICA 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. 25818 VIA E-MAIL regulatory.affairs@terasengas.com July 10, 2008 Mr. Tom Loski Chief Regulatory Officer Terasen Gas Inc. 16705 Fraser Highway Surrey, BC V3S 2X7 Dear Mr. Loski: Re: Terasen Gas (Vancouver Island) Inc. 2008 Annual Gas Contracting Plan – November 2008 – October 2009 On June 23, 2008, Terasen Gas (Vancouver Island) Inc. (“TGVI”) filed its 2008/09 Annual Gas Contracting Plan (“ACP”). The primary objectives of TGVI’s ACP are consistent with previous years’ filings and are outlined as follows: 1. To contract for cost-effective supply resources that ensure safe and reliable natural gas deliveries to meet core customer design peak day while militating against upstream and downstream supply disruptions. 2. To develop a portfolio resource mix with price diversity that incorporates contracting flexibility for both short and longer-term planning. The Commission accepts the 2008/09 ACP and the major components as described in the confidential document on pages 15 and 16. A summary is as follows: • An increase of 1.7 TJ/day or 1.6% to 110.4 TJ/day from the 2007/08 ACP. • Increase in Huntingdon seasonal and peaking purchases due to the increase in the peak day. • The storage and transportation portfolio to remain unchanged from 2007/08. The information exclusive of the Executive Summary will be treated as confidential. All individual gas supply contracts and amendments will continue to be filed in a timely manner pursuant to Section 71 of the Utilities Commission Act. TGVI will continue to be expected to justify that each contract is consistent with meeting the …/2

2 needs of the core customers at the lowest cost and will also be required to file a report with the Commission at the end of the 2008/09 ACP that will analyse whether the objectives of the plan have been met. A copy of the non-confidential 2008/09 ACP Executive Summary is attached. RB/cms Attachment TGVI/Cor/L-35-08_AnnualGasContracting Plan 2008-09 LETTER NO. L-35-08 Yours truly, Original signed by Erica Hamilton