BRITISH COLUMBIA UTILITIES COMMISSION. IN THE MATTER OF the Utilities Commission Act R.S.B.C. 1996, Chapter 473;

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1 Order Number G--0 BRITISH COLUMBIA UTILITIES COMMISSION IN THE MATTER OF the Utilities Commission Act R.S.B.C., Chapter ; AND IN THE MATTER OF British Columbia BC Hydro and Power Authority 0/0 and 0/0 Revenue Requirement Application WRITTEN EVIDENCE OF Hugh W. Johnson, CA IFA on behalf of The Joint Industry Electricity Steering Committee April, 0

2 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of 0 Q.. Mr. Johnson, will you please state your full name and occupation? A. My name is Hugh Warren Johnson. I am a Partner with the firm Stephen Johnson Chartered Accountants. My business address is, Suite #, th Avenue S.W., Calgary, Alberta. Q.. What is your academic professional background? A. I am a chartered accountant, with over 0 years of experience and have a specialty designation in investigative and forensic accounting. My practice is primarily with respect to rate regulation. I have testified before a number of the provincial regulatory authorities in Canada as well as the National Energy Board and the Canadian Radio-television and Telecommunications Commission for over years. I have testified before this Commission a number of times the most recent being in. My Curriculum Vitae is attached as Appendix. Q.. Who requested that you prepare this evidence? A. I have prepared this evidence at the request of The Joint Industry Electricity Steering Committee ( JIESC ) in its role of representing the interests of its members. Q.. What is the purpose of your evidence? A. The purpose of my evidence is to respond to the proposal by B.C. Hydro and Power Authority ( BC Hydro ) to transfer $ million from the reserve for Future Removal and Site Restoration ( FRSR ) to retained earnings in adopting Section 0 of the Canadian Institute of Chartered Accountants ( CICA ) Handbook ( Handbook ) dealing with Asset Retirement Obligations ( ARO ) in 0 for regulatory purposes.

3 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of Q. Please summarize your conclusions and recommendation. A. I believe that BC Hydro s proposal will result in a direct transfer of $ million from customers to the shareholder. The immediate effect of crediting the FRSR balance to retained earnings is an increase in the return portion of the annual revenue requirement by in excess of $ million. Furthermore, BC Hydro has indicated that when the cost of removal, dismantling and site restoration occurs for assets for which there were amounts previously provided for in the FRSR, it will seek to recover these costs from the customers. In my opinion this amounts to double recovery. I recommend that the Commission require BC Hydro, for regulatory purposes, to maintain the FRSR reserve and to use it either to: Charge the costs for FRSR on the assets for which there is no ARO until such time as the FRSR reserve is depleted, or Amortize the FRSR on a straight-line basis over a period of years. Either direction will ensure the customers receive the benefit of the reserves they have created and avoid customers paying for the same costs twice. Q. Please explain the basic concepts behind the provisions for FRSR and ARO. A. FRSR and the related concept of negative salvage have been part of depreciation accounting for many decades. As early as, Marston, Winfrey and Hempstead discussed negative salvage, stating [W]hen the cost of removal exceeds the value of the retired property, after its removal, the result is negative salvage. FRSR costs are essentially negative salvage costs. Marston et al Return on $ million at requested.% (page.) is $. million Response to JIESC (b). Anson Marston, Robley Winfrey, Jean C. Hempstead, Engineering Valuation and Depreciation, (Ames Iowa, Iowa State University Press, th printing),

4 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of discussed the two ways of recovering the negative salvage, one was through the depreciation rate and the other was through the asset base that was being depreciated. In 0 the CICA introduced section 00 of the Handbook. That section for the first time recommended When reasonably determinable, provisions should be made for future removal and site restoration costs, net of expected recoveries, in a rational and systematic manner by charges to income. [DEC. 0] A number of rate-regulated enterprises had collected these costs prior to 0. The method adopted by CICA was to collect the amounts by adjusting the depreciation rate. The recommendation, which was followed by BC Hydro, was that the amounts so collected should be shown as a liability. However, a number of companies, with the concurrence of their auditor and regulator, chose to continue to record the costs as part of accumulated depreciation. In 0 CICA introduced a new section 0 which superseded the previous section 0 with respect to the recommendation regarding FRSR. This section introduced new terms including Asset Retirement Obligations ( ARO ), and a different approach to site removal and retirement costs. Only amounts that are expected to be payable as a result of a legal obligation associated with the retirement of a tangible long-lived asset, including an obligation created by promissory estoppel, establishes a clear duty or responsibility to another party that justifies recognition of a liability are considered ARO. Section 00 was replaced by section 0 regarding tangible assets but the recommendation remained unchanged. Handbook sub-section 00.. Comments in italics are requirements in the Handbook. The comment was not in italics unlike mandated provisions. For example TransAlta Utilities Corporation, and ATCO Electric Ltd. Section 0 replaced section 00 with respect to tangible assets. Sub-section 0.0

5 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of Under the ARO approach the liability is calculated based upon the present value of the future cash flow expenditures of the liability. A credit-adjusted risk-free rate is used to discount the cash flows. An asset is recorded for the initial amount of the liability. This asset is depreciated in the same manner as the tangible assets to which it relates. The liability increases each year and the annual change in the liability due to the passage of time is recorded as accretion expense. There are therefore, two expenses, the depreciation of the Asset Retirement Cost ( ARC ) and the accretion expense. At the anticipated date of retirement the combination of the two amounts the depreciation and the accretion expense will total the undiscounted amount of the ARO. To the extent that actual experienced costs are not covered by the ARO they are expensed. Q. What is the source of the funds that have accumulated in the FRSR account? A. BC Hydro has indicated that the source of the FRSR reserve was the amounts collected in rates, starting in at $million. However, the amounts referred to in the response do not seem to agree with the balance sheet provided as schedule A-. Q. What is your primary concern with the approach BC Hydro is taking? A. My primary concern is that in adopting Section 0 BC Hydro proposes to credit retained earnings with the $ million (net) amount even though this amount Paragraph 0.0(e) In calculating the cash flows salvage proceeds are not considered. Referred to as Asset Retirement Cost ( ARC ) (Sub-section 0.0(d)) This raises a potential additional issue of asset impairment if the combined carrying cost of the ARC and the asset exceeds the value of the asset. The net present value of the cash flows increases as the number of years until the expenditure is made decreases. Asset Retirement Obligation Sub-section 0.0(a) Handbook Sub-section 0.0(f) Response to JIESC (a)

6 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of was collected from customers to provide for FRSR. This proposal is a direct transfer of $ million from customers to the shareholder. The effect of crediting the FRSR balance to retained earnings is an immediate increase in the return portion of the revenue requirement by in excess of $ million. Furthermore, when the cost of removal, dismantling and site restoration occurs for assets for which there were amounts previously provided for in the FRSR, the customers will likely be required to fund the costs again. BC Hydro has indicated that site restoration and removal costs that are not covered by ARO will be charged against income on a cash basis. Q. Is the treatment adopted by BC Hydro appropriate for a regulated utility? A. No. While Section 0 suggests that the amount of the difference between what had been recorded as FRSR and the ARO amounts should be recorded through retained earnings, it should be noted that the section of the Handbook that that discusses the treatment of the current provision for FRSR is a suggestion not a requirement. In an unregulated enterprise the approach is appropriate since the FRSR reduced the net income initially and hence the retained earnings in the past and was therefore a cost to the shareholders. That is generally not the case for rate-regulated enterprises and certainly not for BC Hydro where the rates explicitly reflected an amount for FRSR costs. In a rate-regulated enterprise the net income is determined/forecast ex ante and the revenues were designed to recover the costs including the equity return and the FRSR Therefore, for rate-regulated enterprises placing the excess of the current provision for FRSR over the ARO in retained earnings fails to reflect the Return on $ million at requested.% (page.) is $. million Response to JIESC (b) Subsection 0, Appendix B paragraph B Sub-section 0. In the Handbook the mandated provisions are in italics, subsection 0. is not in italics Assuming that the revenues were subject to market pressure and could not otherwise be increased.

7 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of source of the funding of the FRSR and has the effect of charging customers for the use of the funds that they have provided and requiring them to fund those costs again in the future. Q. Does Section 0 recognize this difference between unregulated and rate regulated enterprises? A. Sections 00 and 0 recognized rate-regulated enterprises as did FAS, but, section 0 does not explicitly recognize the differences between rateregulated enterprises and other enterprises. However, I believe the difference is implicitly recognized. In the backgrounder to Section 0 the Accounting Standards Board ( AcSB ) indicates that: FAS makes specific reference to rate-regulated enterprises and the manner in which its requirements apply in relation to other US standards dealing with such enterprises (FASB Statements of Financial Accounting Standards No., "Accounting for the Effects of Certain Types of Regulation" (FAS ), and No. 0, "Regulated Enterprises Accounting for Abandonments and Disallowances of Plant Costs" (FAS 0)). Section 0 makes no specific reference to rate-regulated enterprises because Canadian GAAP does not include any standards applicable only to rate-regulated enterprises that correspond to FAS and FAS 0. The AcSB considered whether to provide guidance within Section 0 for rate-regulated enterprises and concluded that it is unnecessary. Section 0 applies in the same manner to a rateregulated operation as to any other business. The issuance of Section 0 has not altered Canadian GAAP with regard to Subsection 00. and 0. Paragraphs to

8 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of the special accounting treatments that may be accepted practice for dealing with some of the effects of rate regulation, nor created any Canadian/US GAAP difference in that regard. [emphasis added] Thus CICA recognized that different treatment for rate-regulated enterprises might occur with respect to ARO. Given that an amount of FRSR has been collected from customers it is appropriate in my view to recognize BC Hydro as a rate-regulated enterprise and have it record the FRSR amounts differently for regulatory purposes as compared to the treatment contemplated in section 0. Q. Are you aware of other instances where the treatment for regulated enterprises differs from the CICA handbook recommendations? A. Yes. This is what was done in 0 with respect to foreign exchange. In June 0 BC Hydro requested that the Commission provide an exemption from the Handbook requirements with respect to foreign exchange gains or losses. This approval was requested to allow BC Hydro to use an alternative method for recording foreign exchange gains or losses from that which came into effect for fiscal 0. In particular the Commission noted: A. On June, 0, British Columbia BC Hydro and Power Authority ( B.C. Hydro ) applied to the Commission for approval to continue to defer and amortize foreign exchange gains and losses on the translation of foreign denominated long-term monetary items, contrary to new Generally Accepted Accounting Principles ( GAAP ); and B. B.C. Hydro is also requesting that it be allowed to alter its amortization methodology for the fiscal year beginning April, 0 and future periods; and Asset Retirement Obligations- Background Information and Basis for Conclusions Section 0 paragraphs and ( Backgrounder ) 0 Annual Report page Sub-section 0.

9 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of C. B.C. BC Hydro advises that the change in GAAP would create material fluctuations in B.C. Hydro s net income from year to year, creating an environment that is inconsistent with the regulatory goal of providing smooth, stable and predictable rates; and D. The Commission has reviewed the application and finds that approval is in the public interest. NOW THEREFORE the Commission approves the continued deferral and amortization of foreign exchange gains and losses on the translation of foreign denominated long-term monetary items, using the straight-line pooled method, for the fiscal year beginning April, 0 and future periods. [emphasis added] Even if BC Hydro chooses to record the existing provision for FRSR for accounting/financial statement purposes as an addition to retained earnings there is no need make these changes for regulatory purposes. For regulatory purposes, the FRSR amount would be excluded from equity and the rate of return calculation. This would be consistent with the normal regulatory principle that customers should not pay a return on customer contributed capital such as deferred income taxes, and accumulated depreciation. 0 Another example of different treatment between rate-regulated and unregulated companies was the treatment of FRSR reserves as noted above where some rateregulated enterprises recorded the reserve as part of accumulated depreciation. In other instances such as income taxes, which has been argued before this Commission in the past, it was explicitly recognized in the CICA Handbook that a regulator could direct a different accounting treatment. Order G--0 0 See for example Schedule to the January decision of the Commission (Order G--) regarding Pacific Northern Gas Ltd. Where there is no return associated with the deferred income tax balance and the contributions in aid of construction.

10 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of Q. What are other rate-regulated enterprises doing with respect to Asset Retirement Obligations? A. In response to JIESC Information Request No., BC Hydro listed some other enterprises. BC Hydro also attached a copy of a paper produced by the Edison Electric Institute ( EEI ) and the American Gas Association. One thing that is clear from the EEI paper is that for Regulated Operations there is no adjustment to retained earnings as can be seen from the following comments: The impact on regulated entities resulting from SFAS No. (implementation to settlement) will be profit and loss neutral and will be reflected as a regulatory asset/liability on the balance sheet as long as the recovery of the regulatory asset/liability is probable under SFAS No.. Overall, the journal entries required at implementation, subsequent to implementation and settlement are primarily the same except that during implementation any cumulative effect that would have occurred in an unregulated environment would be reflected generally as a regulatory asset/liability in a regulatory environment to the extent the differences in ARO expense for SFAS No. and ARO expense for ratemaking purposes will be reflected in rates. [emphasis added] This is consistent with my understanding of the Federal Energy Regulatory Commission s ( FERC ) Order. In that Order the FERC stated. The purpose of this rule is to establish uniform accounting requirements for the recognition of liabilities for legal obligations associated with the retirement of tangible long-lived assets. The JIESC (e) Statement of Financial Accounting Standards No., Accounting for Asset Retirement Obligations, Asset Retirement Obligation Implementation Issues, October 0. ( EEI Paper ) EEI Paper at page First issued as notice of proposed rule making (NOPR) order in the fall of 0 and approved as Order FERC,0, Docket RM0--000, CFR Parts,,,,, and issued April, 0. Order on Rehearing -A issued July, 0

11 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of accounting for removal costs that do not qualify as legal retirement obligations falls outside the scope of this rule. The Commission is aware that there is an ongoing discussion in the accounting community as to whether the cost of removal should be considered as a component of depreciation. However, this issue is beyond the scope of this rule and we are not convinced that there is a need to fundamentally change accounting concepts at this time.. Instead we will require jurisdictional entities to maintain separate subsidiary records for cost of removal for non-legal retirement obligations that are included as specific identifiable allowances recorded in accumulated depreciation in order to separately identify such information to facilitate external reporting and for regulatory analysis, and rate setting purposes. Therefore, the Commission is amending the instructions of accounts and 0 in Parts, and account, Accrued depreciation Carrier property, in Part to require jurisdictional entities to maintain separate subsidiary records for the purpose of identifying the amount of specific allowances collected in rates for non-legal retirement obligations included in the depreciation accruals. [emphasis added]. Jurisdictional entities must identify and quantify in separate subsidiary records the amounts, if any, of previous and current accrued accumulated removal costs for other than legal retirement obligations recorded as part of the depreciation accrual in accounts and 0 for public utilities and licensees, account for natural gas companies, and account for oil pipeline companies. If jurisdictional entities do not have the required records to separately identify such prior accruals for specific identifiable FR (April, 0), at 0,0 and 0,0

12 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of allowances collected in rates for non-legal asset retirement obligations recorded in accumulated depreciation, the Commission will require that the jurisdictional entities separately identify and quantify prospectively the amount of current accruals for specific allowances collected in rates for non-legal retirement obligations. Paragraph is essentially what I am recommending for BC Hydro. Q. Why do you consider FAS and the FERC Order relevant when BC Hydro is regulated by the Commission and records its financial statements on the basis of Canadian generally accepted accounting principles? A. While there are differences in accounting treatment and different regulators, the U.S. has many more regulated enterprises and the accounting profession dealt with AROs and the circumstances of the regulated enterprise explicitly. Further, the CICA in the backgrounder to section 0 stated: The AcSB did not redeliberate all of the issues discussed in Appendices B and F to FAS, some of which are not relevant to Canadian GAAP, and does not necessarily endorse all of the FASB's conclusions on specific issues. Nevertheless, the AcSB concluded that, overall, it had no compelling reason to modify the substance of the standard in FAS in developing Section 0. [emphasis added] In addition, the FERC has annual reporting requirements for electric (Form ), gas (Form ) and oil (Form ) and so it was necessary for it to deal with what accounts would be used for ARO accounting and how the existing FRSR costs were treated. FAS Accounting for the Effects of Certain Types of Regulation The FASB did not have an equivalent section to 00. to. in its accounting pronouncements, except in FAS that dealt with Oil and Gas producing companies.

13 British Columbia Hydro and Power Authority April, 0 0/0 and 0/0 Revenue Requirement Application Joint Industry Electricity Steering Committee - Evidence of H.W. Johnson Page of The FERC has determined that the difference between the amounts recorded previously, for future site restoration and the amounts recorded under the new rules for AROs should be defined as cumulative effect adjustment. The cumulative effect adjustment should be recorded as balance sheet accounts. The alternative considered was to adjust through the income statement. The FERC also indicated that the amount previously accrued should be recorded in a deferred credit account. This is similar to the account that BC Hydro currently has for FRSR. Q. What do you recommend the Commission do in this case? A. The Commission should require BC Hydro for regulatory purposes to maintain the FRSR reserve and to use it either to charge the costs for FRSR on the assets for which there is no ARO until such time as the FRSR reserve is depleted or to amortize the FRSR on a straight-line basis over a period of years. This will avoid customers paying for the same costs twice. The shorter the period of the amortization or pay-back of the FRSR, such as five years, the more likely that the customers who paid the amounts will receive the benefit of the repayment. An amortization of years would be approximately similar to charging the costs against the FRSR. Q. Does this conclude your evidence? A. Yes. FERC,0, paragraph. Companies have to apply for approval by the FERC to make an adjustment through the income statement. ( FERC,0, paragraph ).

14 CURRICULUM VITAE APPENDIX HUGH W. JOHNSON Residence: Position: Calgary, Alberta Partner of Stephen Johnson, Chartered Accountants, and formerly a partner of Deloitte Haskins & Sells (now Deloitte & Touche), Chartered Accountants. Education: Bachelor of Commerce, University of Calgary, 0. Professional Member of the Institute of Chartered Accountants of Alberta since. Designation: Designated specialist in investigative and forensic accounting (0) Other Member of Canadian Tax Foundation since. Memberships: Experience: Actively engaged in the practice of public accounting as a chartered accountant in the Province of Alberta since. Consultant with respect to an Inquiry respecting the Accounting for Income Tax on Utility Income in and, held by the Public Utilities Board of Alberta. Consultant to certain oil and gas producers in the preparation of responses to the review and rehearing applications of NOVA Corporation of Alberta (formerly Alberta Gas Trunk Line Company Limited) to the Public Utilities Board of Alberta in. Consultant to the Canadian Association of Petroleum Producers (formerly the Canadian Petroleum Association) with respect to the appropriate method of accounting for income taxes for TransCanada PipeLines Limited in, and 0. Consultant to the Canadian Association of Petroleum Producers (formerly the Canadian Petroleum Association) with respect to interventions in hearings held before the National Energy Board on tolls applications of TransCanada PipeLines Limited (,, 0,,,,,,,,,,, and ), Westcoast Energy Inc. (, 0,,,,,,, 0,, and ) and Trans Québec & Maritimes Pipeline Inc. ( and ). Consultant to the Alberta Petroleum Marketing Commission with respect to its intervention in a hearing held before the National Energy Board on an application by Foothills Pipe Lines Ltd. ().

15 Consultant to a group of oil producers in respect to their intervention in a hearing held by the National Energy Board on an application by Inter- Provincial Pipe Line Limited (). Consultant to various groups of industrial and/or municipal intervenors in hearings held by the British Columbia Utilities Commission on applications by Inland Natural Gas Co. Ltd. (, and ), Pacific Northern Gas Ltd. (, and ), West Kootenay Light & Power Company Limited () and Columbia Natural Gas Limited (). Consultant with respect to various interventions by The City of Calgary before the Canadian Radio-television and Telecommunications Commission. Consultant with respect to various interventions by The City of Calgary and the City of Edmonton before the Public Utilities Board of Alberta. Consultant for the Province of New Brunswick with respect to applications by Maritimes and Northeast Pipeline Project for lateral facilities ( and ) and pipeline expansion (0). Consultant for the Province of New Brunswick with respect to an application by Imperial Oil Resources Limited for a gas export license (). Consultant for the Province of New Brunswick with respect to an application by Enbridge Gas New Brunswick Inc. for an order fixing just and reasonable rates and tariff for the distribution of natural gas and for customer services. (00). Witness before the National Energy Board in the matters of an appropriate method of regulation for Westcoast Transmission Company Limited ( and ), TransCanada PipeLines Limited () and Trans Québec & Maritimes Pipeline Inc. (). Witness before the National Energy Board in the matter of an appropriate method of accounting for income taxes by TransCanada PipeLines Limited (), Trans Quebec & Maritimes Pipeline Inc. (), Westcoast Transmission Company Limited () and Trans Mountain Pipe Line Company Ltd. (). Witness before the British Columbia Utilities Commission in the matter of an appropriate method of accounting for income taxes by Inland Natural Gas Co. Ltd. and Columbia Natural Gas Limited (), West Kootenay Light & Power Company Limited () and Pacific Northern Gas Ltd. ().

16 Witness before the Ontario Energy Board in the matter of an appropriate method of accounting for income taxes for Union Gas Limited (). Witness before the Régie de l'electricite et du Gaz in the matter of appropriate methods of cost allocation for gas utilities in Quebec (). Witness before the National Energy Board with respect to matters of toll design for Westcoast Transmission Company Limited (). Witness before the Public Utility Review Commission of Saskatchewan with respect to matters relating to a gas cost adjustment mechanism for Saskatchewan Power Corporation () and on a rate design for Saskatchewan Power Corporation (). Witness before the National Energy Board in the matter of the availability of services on TransCanada PipeLines Limited (), the tolls of TransCanada PipeLines Limited (, /,,, and ) and the tolls of Westcoast Energy Inc. (,, 0,, and ). Witness before the National Energy Board in the matter of facilities applications by TransCanada PipeLines Limited (, 0 and ). Witness before the Public Utilities Board of Alberta with respect to deferred gas accounting (0), cost allocation and rate design matters () for Canadian Western Natural Gas Company Limited. Witness before the Public Utilities Board of Alberta with respect to the appropriate method of accounting for income taxes for Canadian Western Natural Gas Company Limited, Alberta Power Limited and TransAlta Utilities Corporation () and before the Alberta Energy and Utilities Board with respect to Alberta Power Limited and TransAlta Utilities Corporation (). Witness before the National Energy Board in the matter of an appropriate method of accounting for income taxes by Interprovincial Pipe Line Inc. and accounting treatments in respect to the Montreal Extension of Interprovincial Pipe Line Inc. (). Witness before the Canadian Radio-Television and Telecommunications Commission with respect to the appropriate treatment of additional tax deductions arising from the privatization of AGT Limited and the appropriate method of accounting for income taxes (). Witness before the Public Utilities Board of Alberta with respect to an application for interim rates on Peace Pipe Line Ltd. ().

17 Witness before the British Columbia Utilities Commission with respect to the calculation of returns and the treatment of rate stabilization under the special direction to the Commission relating to B.C. Hydro and Power Authority (). Witness before the Natural Resources Conservation Board of Alberta with respect to an application by Chem-Security (Alberta) Ltd. (). Witness before the Alberta Energy and Utilities Board with respect to the tolls of Nova Gas Transmission Ltd. (). Witness before the National Energy Board in the matter of an appropriate method of dealing with the deferred taxes of Foothills Pipe Lines Ltd. (). Witness before the Deputy Comptroller of Water Rights of British Columbia with respect to the determination of rate base, capital structure and return on equity of the Greater Victoria Water District (). Witness before the National Energy Board with respect to an abandonment application by Manito Pipelines Ltd. (). Witness before the Alberta Energy and Utilities Board with respect to a load retention rate application by Nova Gas Transmission Ltd. (). Witness before the Joint Public Review Panel and the National Energy Board with respect to the proposed toll design and treatment of laterals on the Maritimes & Northeast Pipeline Project (). Witness before the National Energy Board with respect to toll design and cost of service for the Interprovincial Pipe Line Inc. Line Reversal Project (). Submitted evidence to the Canadian Radio-Television and Telecommunications Commission in its proceeding on the implementation of price cap regulation with respect to the appropriate treatment of additional tax deductions arising from the privatization of MTS Netcom Inc. and on the appropriateness of changes in accounting policies and procedures by Telus Communications Inc. (). Submitted evidence to the Canadian Radio-Television and Telecommunications Commission in its proceeding respect to MTS Communications Inc. Proposed Mechanism to Recover Future Income Tax () and witness before Canadian Radio-Television and Telecommunications Commission the regarding the Recovery of Income Tax Expense 00 and 0 of MTS Communications Inc. (0)

18 Submitted evidence to the Ontario Energy Board with respect to the transfer of ancillary businesses from Union Gas Limited to an affiliated company. Submitted evidence to the Régie de l=énergie with respect to the Incentive Mechanism proposed by Société en Commandite Gaz Métropolitain. () Witness before the National Energy Board in the facilities application of Alliance Pipeline Limited Partnership. Witness before the Alberta Energy and Utilities Board with respect to an application by Canadian Western Natural Gas Company Limited respecting and revenue requirement and rate design, and an application by TransAlta Utilities Corporation respecting and 00 revenue requirement (). Witness before the National Energy Board with respect to an Application of Maritimes & Northeast Pipeline for final tolls, respecting provincial discounts (00), and the definition of the proposed Northwest Facilities (0). Witness before the Ontario Energy Board with respect to an Application of Union Gas Limited approving rates for the sale, distribution, transmission and storage of gas in accordance with a performance-based rate mechanism, respecting the performance-based rate mechanism (00). Witness before the Alberta Energy and Utilities Board with respect to TransAlta Utilities Limited, ATCO Electric Ltd. and EPCORE Transmission Inc. relating to their transmission revenue requirements for 0 and or 0 (00). Witness before the Alberta Energy and Utilities Board with respect to ATCO Gas and Pipelines Ltd. regarding the appropriate gas cost recovery rate ( GCRR ), GCRR methodology, Natural Gas Rate Unbundling, the appropriate revenue requirement for ATCO Gas(South) and ATCO Pipelines (South) (0),and the ATCO Affiliate Transaction proceeding (0). Witness before the Alberta Energy and Utilities Board with respect to TransAlta Utilities Limited proposed sale of electric transmission facilities to AltaLink Management Ltd (0). Witness before the Alberta Energy and Utilities Board with respect to an application by ATCO Gas and Pipelines Ltd, Carbon Storage Transfer proceeding (0). Witness before the National Energy Board with respect to an Application by the Province of New Brunswick for a review of the procedures for short-term

19 export orders and an application by TransCanada Pipelines Limited to change its rate of return. (0) Witness before the Alberta Energy and Utilities Board with respect to ATCO Gas and Pipelines Ltd. regarding the appropriate revenue requirement for AltaLink L.P., ATCO Gas, ATCO Pipelines and the ATCO Electric proceeding (0). Witness before the Alberta Energy and Utilities Board with respect to a request by ATCO Gas and Pipelines Ltd. and ATCO Electric Ltd. to transfer their default and regulated rate supply functions to Direct Energy Marketing Limited, a request by Direct Energy Marketing Limited for regulated rates, and a request by ATCO Gas for unbundled rates (0). Witness before the Alberta Energy and Utilities Board with respect to generic cost of capital for gas and electric utilities (0).