524/95

O.C. 1509/95

December 13, 1995

Vancouver Island Natural Gas Pipeline Act

Vancouver Island Natural Gas Pipeline Exemption Regulation

Definitions

In this regulation:

Centra Companies means Centra Gas British Columbia Inc., Centra Gas Vancouver Island Inc. and Centra Gas Victoria Inc.;

Class A Instruments and Class B Instruments have the meanings assigned to those terms in the Vancouver Island Natural Gas Pipeline Special Direction;

exempt transaction means a transaction described in

section 1.01 (ab) (

i) to (iii) of the Vancouver Island Natural Gas Pipeline Agreement;

reorganization transaction means a transaction described in

section 1.01 (ab) (iv) to (vii) of the Vancouver Island Natural Gas Pipeline Agreement;

review means the review that is contemplated by

section 1.01 (ab) of the Vancouver Island Natural Gas Pipeline Agreement, is described in

section 10.01 of that agreement and is required, in respect of any reorganization transaction, by

section 10.01 of that agreement;

Vancouver Island Natural Gas Pipeline Agreement means an agreement substantially in the form of the proposed Vancouver Island Natural Gas Pipeline Agreement set out in

Schedule 1 of the Vancouver Island Natural Gas Pipeline Agreement Approval Order.

Utilities Commission Act exemption

Sections 50 (2), 52 (1), 53 (1) and 54 (5), (7) and (8) of the Utilities Commission Act do not apply to Pacific Coast Energy Corporation or, for so long as the Centra Companies continue to be local distribution utilities, to the Centra Companies in respect of

any of the exempt transactions, or

subject to

section 3, any of the reorganization transactions

that are carried out during the period ending at the end of March 31, 1996.

Condition

The exemptions granted under

section 2 (b), to Pacific Coast Energy Corporation and the Centra Companies, apply to Pacific Coast Energy Corporation and any of the Centra Companies in respect of a particular reorganization transaction only if the outcome of the review is that the Province is satisfied that the reorganization transaction, if carried out, would not result in an adverse impact on the Revenue Deficiency Deferral Account, as defined in the Vancouver Island Natural Gas Pipeline Special Direction, and so indicates by means of an approval contemplated by

section 10.01 of the Vancouver Island Natural Gas Pipeline Agreement.

Further exemption

Section 50 (2) and (3) (

a) of the Utilities Commission Act do not apply to Pacific Coast Energy Corporation or the Centra Companies in respect of

the issuance by them of Class A Instruments or Class B Instruments or both, or the conversion of Class A Instruments into Class B Instruments or Class B Instruments into Class A Instruments, provided that the maximum amount of Class A Instruments and Class B Instruments outstanding at any time does not exceed 110% of the balance of the Revenue Deficiency Deferral Account, as defined in the Vancouver Island Natural Gas Pipeline Special Direction, at that time, or

an increase or decrease in the dividend rate on the Class A Instruments, on a dividend reset date, in accordance with the terms of those Instruments, or an increase or decrease in the interest rate on the Class B Instruments, on an interest reset date, in accordance with the terms of those Instruments.

[Provisions of the Vancouver Island Natural Gas Pipeline Act , R.S.B.C. 1996, c. 474, relevant to the enactment of this regulation:

section 7 (2)]