BCUC approves Terasen's resource plan and LNG storage facility

1. Resource Plan accepted
2. LNG storage facility CPCN approved, subject to:
2.2 a long-term transportation agreement with BC Hydro
2.4 construction must start by Dec 15, 2005


The BC Utilities Commission released its decision today on the Terasen Gas (Vancouver Island) 2004 Resource Plan Filing and Certificate of Public Convenience and Necessity Application for a Liquified Natural Gas (LNG) Storage Project.

NOW THEREFORE the Commission orders as follows:

1. The Commission accepts the Resource Plan for filing, pursuant to subsections 45(6.1) and 45(6.2) of the Act.

2. Pursuant to Section 45 of the Act, the Commission approves a Certificate of Public Convenience and Necessity for the LNG Project as set out in the CPCN Application with an estimated cost of $94.4 million, subject to the following conditions:

2.1 The Engineering, Procurement and Construction ("EPC") bid price that TGVI accepts for the LNG Storage Facility will not exceed 110 percent of $75.9 million.

2.2 A firm, long-term transportation service agreement to serve the Island Co-generation Plant and the proposed Duke Point Power Limited Partnershp facility will be executed by TGVI and British Columbia Hydro and Power Authority and approved by the Commission, prior to the commencement of construction of the LNG Project.

2.3 An LNG Storage Agreement that assures TGVI of LNG mitigation revenue consistent with the amount of such revenue that TGVI used in its financial analysis will be executed by TGVI and Terasen Gas Inc. and approved by the Commission, prior to commencement of construction of the LNG Project.

2.4 The Certificate of Public Convenience and Necessity will terminate if construction of the LNG Project has not commenced by December 15, 2005.

TGVI will file the detailed firm EPC bid price and detailed project schedule with the Commission in a timely fashion, and will confirm that the estimate of total project costs is based on steel prices and other information that is current.

4. TGVI will file with the Commission monthly progress reports on the LNG Project schedule and costs, followed by a final report upon project completion. TGVI will determine the form and content of the reports n consultation with Commission staff.

DATED at the City of Vancouver, in the Province of British Columbia, this 15th day of February, 2005.

BY ORDER

Lori Ann Boychuk
Chair

Decision