Orders

IN THE MATTER OF

the Utilities Commission Act, R.S.B.C. 1996, Chapter 473

and

An Application by Direct Energy (B.C.) Limited

for Renewal of its Gas Marketer Licence

under the Customer Choice Program

BEFORE:               L.F. Kelsey, Commissioner

                                N.E. MacMurchy, Commissioner                               October 18, 2012

                                B.A. Magnan, Commissioner

                                R.D. Revel, Commissioner

O  R  D  E  R

WHEREAS:

A.      On August 30, 2012, Direct Energy (B.C.) Limited (Direct Energy), carrying on business as Direct Energy Business for commercial customers and Direct Energy for residential customers, applied to the British Columbia Utilities Commission (Commission) for renewal of its Gas Marketer Licence.  The Application for renewal of its Licence to Market Natural Gas (Application) included the payment of the $1,000 Application Fee and a $250,000 proof of security, pursuant to Sections 2 and 4 respectively, of the Licence Requirements;

B.      The Commission has reviewed Direct Energy’s Application and relying upon the information and representations made by Direct Energy finds that renewal of its Gas Marketer Licence, subject to conditions, is warranted.

NOW THEREFORE pursuant to section 71.1(6) of the Utilities Commission Act, the Commission orders as follows:

1.       The Commission issues to Direct Energy a Gas Marketer Licence for the period of November 1, 2012 to October 31, 2013.

2.       This licence is subject to the following conditions:

a.       Direct Energy will carry out the undertakings as provided in its Application for a Gas Marketer Licence and as set out in the Rules for Gas Marketers established by Order A-11-11.

b.      Direct Energy will comply with the Code of Conduct for Gas Marketers and Rate Schedule 36 of FortisBC Energy Inc.  Direct Energy shall ensure that its employees, salespersons or other representatives of its products and services comply with the standards required of a Gas Marketer as set out in the Code of Conduct for Gas Marketers and Direct Energy shall be responsible for any non-compliance of its employees, salespersons or other representatives of its products and services.

c.       Direct Energy will maintain a $250,000 performance security in full force and effect for the duration of the Licence.

d.      Direct Energy will file with the Commission, pursuant to item 10.0 of the Rules for Gas Marketers, the following information:

i.         Unaudited quarterly financial statements, no later than 45 days after the end of each quarter;

ii.       The most recent version of the documents submitted to satisfy Section 7, Financial Qualifications, of the Licence Requirements; and

iii.      The most recent version of the documents submitted under Sections (8), (9), (10), (11) and (12) of the Licence Requirements, for the Commission’s comment and approval, prior to commercial distribution and/or use.

e.      Direct Energy is not permitted to market to and/or enrol new Residential customers currently enrolled under FortisBC Energy’s Rate Schedule 1.

f.        The Commission may, at any time and without prior notice to Direct Energy, amend or impose new terms and conditions on, suspend, or cancel the Gas Marketer Licence for reasons the Commission, in its sole discretion, deems and considers sufficient.

g.       The Gas Marketer Licence and all copies of it shall remain the property of the Commission.   Direct Energy will return these documents forthwith upon written request from the Commission.

DATED at the City of Vancouver, in the Province of British Columbia, this         19^th         day of October 2012.

                                                                                                                                BY ORDER

                                                                                                                                Original Signed by:

                                                                                                                                L.F. Kelsey

                                                                                                                                Commissioner

Attachment