Orders

LETTER NO. L-36-09 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. 29535 VIA E-MAIL June 8, 2009 Regulatory.Affairs@terasengas.com Mr. Tom Loski Chief Regulatory Officer Terasen Gas Inc. 16705 Fraser Highway Surrey, BC V4N 0E8 Dear Mr. Loski: Re: Terasen Gas (Vancouver Island) Inc. (“TGVI”) 2009 Price Risk Management Plan (November 2009 – October 2014) On May 19, 2009 TGVI filed its Price Risk Management Plan (“PRMP”) Application for the period of November 2009 to October 2014. The PRMP is based on similar objectives to last year’s strategy and forms the basis of the Application. They are identified as follows: 1. Remain competitive with alternate fuel sources primarily electricity including mitigation of loss of royalty revenue after 2011. 2. Moderate impacts of commodity price volatility on customer rates. 3. Reduce the risk of price disconnects. It is recognized that TGVI is unique in that the royalty revenue arrangement between TGVI and the Province of British Columbia, provides a natural hedge on approximately 50 percent of TGVI’s annual core load requirements. This royalty revenue arrangement expires on December 31, 2011. Until the Commission has further reviewed the Application, given the favourable price environment wherein forward market prices are currently below the targeted 75 percent efficiency electric equivalent benchmark for most terms within the royalty period, TGVI is directed to implement the components as identified in the confidential Appendix A (attached). Appendix A to this Order will be held confidential. Yours truly, Original signed by: Erica M. Hamilton Confidential Attachment Orders/L-36-09_TGVI PRMP 2009 Nov-Oct2014