ERICA M. HAMILTON COMMISSION SECRETARY Commission.Secretary@bcuc.com web site: http://www.bcuc.com Chad Painchaud Manager, Compliance Government & Regulatory Affairs Suite 1000, 111‐5 th Avenue S.W. Calgary, Alberta T2P 3Y6 Dear Mr. Painchaud: Re: Direct Energy Marketing Limited (“DEML”) Licence Renewal Application The British Columbia Utilities Commission (“Commission”) is writing with regard to its letter dated September 1, 2009 (L‐65‐09) and DEML’s reply dated September 21, 2009. In its reply, DEML indicated two reasons why it could not comply with the Commission’s information request contained in L‐65‐09. It stated, in part, that given “DEML’s corporate structure production of monthly or quarterly financial statements is not feasible.” It also noted that “Due to the above noted corporate structure, and in particular the strength of the parent organization, DEML itself does not maintain a working capital position or asset to liability ratio that meets the BCUC’s license renewal requirements.” The Commission, through Letter L‐65‐09, requested a report detailing the working capital and Current Ratio of Current Assets to Current Liabilities on a stand‐alone basis specifically for DEML on a month‐to‐month basis from January 2007 to present. This information has not been provided. As noted in L‐65‐09, the Chief Financial Officer must confirm that the financial information contained in the report has been prepared by management in accordance with accounting principles generally accepted in Canada and within the framework of the company’s significant accounting policies. With regard to DEML’s application to renew a licence as a Natural Gas Marketer, condition No. 5 of the application instructions requires the applicant to provide a copy of the audited financial statement from the most recently ended fiscal year and copies of all subsequent unaudited quarterly statements for each concluded financial quarter following the most recently ended fiscal year. The Commission requires a copy of the audited financial statement as set out in condition 5 in the Licence Requirements and Application Instructions. If you fail to provide the audited financial statement as required, your renewal will not be processed and your licence will expire. LETTER NO. L‐81‐09 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. CANADA V6Z 2N3 TELEPHONE: (604) 660‐4700 BC TOLL FREE: 1‐800‐663‐1385 FACSIMILE: (604) 660‐1102 Log No. 30684 September 21, 2009 .../2
2 LETTER NO. L‐81‐09 The Commission requires delivery of both the report detailing the working capital and Current Ratio of Current Assets to Current Liabilities as requested in Letter L‐65‐09 and a copy of the audited financial statement from the most recently concluded fiscal year by no later than Tuesday, October 20, 2009 so that they can be reviewed prior to the expiry of your current licence on October 31, 2009. Upon receipt of your submissions, the Commission will consider what, if any, further action it deems to be necessary. Yours truly, Original signed by: J. Torres For: Erica M. Hamilton Jt Orders/L‐81‐09_DEML _Painchaud‐Licence Renewal Compliance
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