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 Issue Debt Securities and Granting of Security for Certain Financial Obligations
BEFORE: L.F. Kelsey, Commissioner
N.E. MacMurchy, Commissioner May 23, 2013
B.A. Magnan, Commissioner
D.M. Morton, Commissioner
R.D. Revel, Commissioner
C. van Wermeskerken, Commissioner
O R D E R
WHEREAS:
A. On May 6, 2013, Pacific Northern Gas (N.E.) Ltd. (PNG(N.E.)) applied for British Columbia Utilities Commission (Commission) approval under section 50 of the Utilities Commission Act to enter into a five-year term revolving credit facility with its parent company, Pacific Northern Gas Ltd. (PNG) in the principal amount of $31.8 million (the PNG Revolving Credit Facility) (the Application);
B. The PNG Revolving Credit Facility will supercede the five-year $12 million loan agreement between PNG(N.E.) and PNG that was approved by Commission Order G-146-09 (the Existing Facility);
C. The Commission has reviewed the Application and supporting material and finds, because of the favorable terms of the facility, that approval of the PNG Revolving Credit Facility is warranted.
NOW THEREFORE pursuant to section 50 of the Utilities Commission Act, the Commission orders as follows:
1. PNG(N.E.) is approved to enter into the $31,800,000 PNG Revolving Credit Facility and incurring indebtedness thereunder from time to time, on the terms and conditions set forth in the Application.
2. The unamortized debt issue costs under the Existing Facility are to be recorded in an interest bearing deferral account to be amortized over what would have been the remaining life of the Existing Facility.
3. The Commission will keep confidential the financing terms set forth in the Application due to the commercial sensitivity of the terms.
DATED at the City of Vancouver, in the Province of British Columbia, this 23rd day of May 2013.
BY ORDER
Original Signed By:
D.M. Morton
Commissioner