Orders

IN THE MATTER OF

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

and

An Application by Pacific Northern Gas Ltd.

for 2013/2014 Natural Gas Supply Contracts

BEFORE:               L. F. Kelsey, Commissioner

                                D. M. Morton, Commissioner                                     December 12, 2013

                                N. E. MacMurchy, Commissioner

                                C. A. Brown, Commissioner

                                R. D. Revel, Commissioner

                                B. A. Magnan, Commissioner

O R D E R

WHEREAS:

A.      By Letter L-41-13 dated July 4, 2013, the British Columbia Utilities Commission (Commission) accepted the Pacific Northern Gas Ltd. (PNG) Annual Contracting Plan (ACP) for the November 1, 2013 to October 31, 2014 gas year (Original 2013-2014 ACP) with respect to the PNG-West, Fort St. John, Dawson Creek and Pink Mountain Service Areas and the partial ACP filed in respect to the Tumbler Ridge Service Area;

B.      By Letter L-48-13 dated August 22, 2013, the Commission accepted the 2013-2014 Tumbler Ridge Annual Contracting Plan (TR 2013-2014 ACP);

C.      By Order E-12-13 dated September 19, 2013, the Commission accepted the PNG amended Annual Contracting Plan for the 2013-2014 year (Amended 2013-2014 ACP) and approved a proposed gas storage contract with Tenaska Marketing Canada (Tenaska) with respect to the PNG-West, Fort St. John and Dawson Creek Service Areas (Proposed Storage Agreement);

D.      On October 31, 2013, pursuant to section 71 of the Utilities Commission Act and the Commission’s Rules for Natural Gas Energy Supply Contracts, PNG filed gas contracts for Commission’s approval of monthly and daily priced gas supply arrangements that include seasonal, peaking, storage contracts, and a Storage Service Agreement between PNG and Tenaska (Application);

E.       PNG requests that the details of the Application be kept confidential for the reasons of commercial sensitivity; and

F.       The Commission reviewed the Application and is satisfied that the gas supply contracts are appropriate considering market conditions at the time they were negotiated, consistent with the Amended 2013-2014 ACP, the TR 2013-2014 ACP and the Proposed Storage Agreement, and in the public interest.

NOW THEREFORE pursuant to section 71 of the Utilities Commission Act and the Commission’s Rules for Natural Gas Energy Supply Contracts, the Commission accepts for filing the natural gas contracts shown in Appendix A to this Order, and the Storage Service Agreement dated September 19, 2013 between Pacific Northern Gas Ltd. and Tenaska Marketing Canada.  The Commission will hold the details of the Application and related filings confidential as requested to protect commercially sensitive information.

DATED at the City of Vancouver, in the Province of British Columbia, this         12th            day of December, 2013.

                                                                                                                                BY ORDER

                                                                                                                                Original Signed By:

                                                                                                                                D. M. Morton

                                                                                                                                Commissioner

Attachment

Pacific Northern Gas Ltd.

Application for 2013/14 Natural Gas Supply Contracts