Orders

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 of the Disposition of Property

and Approval for Capital Expenditures

BEFORE:               R.D. Revel, Commissioner                                            September 25, 2012

                                B.D. Magnan, Commissioner

O  R  D  E  R

WHEREAS:

A.      On September 13, 2012, Pacific Northern Gas (N.E.) Ltd. [PNG(N.E.)] applied to the British Columbia Utilities Commission (Commission) for approval under sections 44.2(1)(b) and 52 of the Utilities Commission Act (Act) to:

(i)      construct a new Dawson Creek Operations Centre on vacant property presently owned by PNG(N.E.) at 1805 – 98^th Avenue, Dawson Creek for an estimated cost of $1,017,000 (New Operations Centre), and

(ii)    dispose of the facilities comprising the existing Dawson Creek office building and land at 1208 – 102^nd Avenue, Dawson Creek (Existing Operations Centre) (Application);

B.      PNG(N.E.) states that the Existing Operations Centre’s building design and location are no longer suitable for its operational needs;

C.      PNG(N.E.) states that it has received and conditionally accepted an offer from a third party to purchase the Existing Operations Centre for an amount that approximates the market value of the assets.  The offer also permits PNG(N.E.) to lease back the office space while the New Operations Centre is under construction;

D.      The accounting and income tax gain on the proposed sale of the Existing Operations Centre is estimated to be $64,000 on the building and $92,000 on the land, which together create a total gain of $156,000.  PNG(N.E.) also proposes to attribute the entire gain to the ratepayers;

E.       PNG(N.E.) seeks expedited approval of the Application to allow the construction of the New Operations Centre to commence in the fall of 2012;

F.       PNG(N.E.) also requests that appendices A, D, and E of the Application be kept confidential, pursuant to the Commission’s Confidential Filings Practice Directive;

G.     In addition to this Application, the Commission is also in the process of reviewing the PNG(N.E.) 2012 Revenue Requirements Application, which among other requests includes costs to repair the Existing Operations Centre;

H.      The Commission determines that a written review process is needed for the regulatory review of the Application.

NOW THEREFORE pursuant to sections 44.2(1)(b) and 52 of the Act the Commission orders as follows:

1.       The Application will be examined by a written review process, in accordance with the Regulatory Timetable that is attached as Appendix A to this Order.

2.       Persons wishing to participate as Interveners or as Interested Parties should register with the Commission by Friday, September 28, 2012.

3.       The Commission will hold the information in Appendices A, D, and E as confidential pursuant to the Commission’s Confidential Filings Practice Directive.

DATED at the City of Vancouver, in the Province of British Columbia, this           25^th          day of September, 2012.

                                                                                                                                BY ORDER

                                                                                                                                Original signed by:

                                                                                                                                R.D. Revel

                                                                                                                                Commissioner

PACIFIC NORTHERN GAS (N.E.) LTD.

An Application

for Approval of the Disposition of Property

and Approval for Capital Expenditures