IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
An Application by Pacific Northern Gas (N.E.) Ltd.
for Approval to Increase Allowable Indebtedness under Pacific Northern Gas’s Revolving Credit Facility
BEFORE: L. F. Kelsey, Commissioner June 17, 2010
D. A. Cote, Commissioner
O R D E R
WHEREAS:
A. On October 22, 2009, Pacific Northern Gas Ltd. (PNG) applied to the British Columbia Utilities Commission (the Commission) for approval under sections 50 and 52 of the Utilities Commission Act (the Act) to enter into a committed five-year term revolving credit facility with Roynat Inc. and Canadian Western Bank in the principal amount of $35 million (the Revolving Credit Facility) with $12 million to be utilized for backstopping an intercompany revolving credit facility with its subsidiary Pacific Northern Gas (N.E.) Ltd. [PNG (N.E.)]; and
B. On October 22, 2009, PNG (N.E.) applied to the Commission for approval under section 50 of the Act to enter into a five-year term revolving credit facility with PNG in the principal amount of $12 million (the PNG Revolving Credit Facility); and
C. On December 3, 2009 the Commission approved the Revolving Credit Facility under Order G-145-09; however, denied PNG’s request to have $10 million of the Revolving Credit Facility available for non‑regulated business; and
D. On December 3, 2009 the Commission approved PNG (N.E.) to enter into the PNG Revolving Credit Facility with PNG in the principal amount of $12 million under Order G-146-09; and
E. On June 3, 2010, PNG (N.E.) applied to the Commission for approval to increase the allowable indebtedness under the PNG Revolving Credit Facility from $12 million approved under Order G-146-09 to $16.8 million (the Application); and
F. On June 8, 2010 the Commission issued an Information Request, which PNG responded to on June 14, 2010; and
G. The Commission has reviewed the Application and supporting material and finds that approval of the request by PNG (N.E.) to increase the principal indebtedness under the PNG Revolving Credit Facility to be in the public interest.
NOW THEREFORE pursuant to section 50 of the Act, the Commission hereby grants approval for PNG (N.E.) to enter into and incur indebtedness under the PNG Revolving Credit Facility up to the principal amount of $16.8 million under the same financing term and conditions as set forth in the Application approved under OrderG-146-09.
DATED at the City of Vancouver, in the Province of British Columbia, this 18th day of June 2010.
BY ORDER
Original signed by:
L. F. Kelsey
Commissioner