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Frequently Asked Questions

1. Who is CEG Energy Options Inc.?
CEG Energy Options Inc. is an independent natural gas supplier licensed in the provinces of British Columbia, Saskatchewan and Alberta. Since 1987 CEG has been providing natural gas through fixed price contracts to thousands of businesses and institutions.

2. With Commercial Unbundling are there any physical changes required before I can purchase natural gas from CEG?
No. You continue to receive natural gas through the pipelines of Terasen, but you have a choice of who supplies the natural gas commodity to Terasen's Midstream and Distribution systems.

3. Who do I call if I experience a gas leak or disruption of service?
Terasen will continue to be responsible for repairs and maintenance. The costs of these services are included in the rates charged by Terasen for distributing the gas.

4. When did natural gas deregulation happen?
Deregulation has been occurring in British Columbia since 1986. Large commercial and Industrial customers have had the option to source natural gas from providers other than Terasen for a number of years, and small commercial customers have had retail choice since 2004. This option will also be available to residential customers beginning May 2007.

5. Should I be worried about the security of my gas supply?
No. Terasen will deliver gas to your business, even if your broker's supply fails. However, in some circumstances extra costs incurred by Terasen may be charged to you. CEG has never failed to deliver to customers.

6. How does the fixed price program work?
CEG enters into long-term fixed pricing arrangements with financial institutions and others and purchases large quantities of natural gas from Western Canadian gas producers. CEG arranges to deliver that supply to Terasen for distribution to customers at a fixed price for the selected term length.

7. When will my contract take effect?
In British Columbia, the effective date depends on the timing of enrollment with Terasen. Commercial unbundling contracts take effect quarterly - February, May, August, and November.

8. How will I be billed under the Commercial Unbundling program?
Terasen will continue to bill you directly for commodity, transportation and distribution costs. The difference is that Terasen will bill you at your contracted CEG rate and CEG will be identified on the bill as your commodity provider.

9. How will I be billed on a Terasen Transportation Rate, if CEG is my commodity provider.
In British Columbia you will receive an invoice from CEG for the gas commodity. You will still receive a bill from Terasen for the transportation of the gas.

10. On which portion of my gas bill can savings be achieved if I buy my natural gas from CEG?
Approximately 2/3 to 3/4 of your bill is the cost of the natural gas. This is the portion in which there is potential for CEG to save you money. The remainder of your bill covers regulated costs, such as delivery and administration, and is regulated by the BC Utilities Commission.

11. Who is eligible for CEG service?
All Industrial, Commercial, Institutional and Multi-unit residential customers are eligible for CEG's gas supply plans. The remaining Residential customer class will be open for competition beginning May 1, 2007 for gas flow beginning November 1, 2007. Visit the CEG British Columbia Residential website for more information on residential service.

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Customer Testimonial

''The bottom line is that CEG Energy has provided us with an economically attractive alternative for the purchase of natural gas. We were able to ride out last year's volatile prices because we had a 3-year fixed price contract.''

-- Darrell Solie, Energy Manager, Saskatoon District Health

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