Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 01/01/2002, Docket: RP02- 57-000, Status: Effective

Second Revised Sheet No. 1117 Second Revised Sheet No. 1117 : Effective

Superseding: First Revised Sheet No. 1117

GENERAL TERMS AND CONDITIONS

TCRA

15.5 Unrecovered Transportation Cost Surcharges.

A. Each November 1, Pipeline shall adjust its rates

either positively or negatively to include a surcharge

to recover or return the balance in the Transportation

Cost Account, a Subaccount of Account Nos. 186 and 254

as of the preceding June 30. Separate surcharges shall

be determined for each service and rate component.

Subject to the adjustment described below in this

Section 15.5, such surcharges shall be determined for

each rate component of each of the Applicable Rate

Schedules by dividing the balance in the applicable

Account Nos. 186 and 254 subaccounts as of the

preceding June 30 by the Rate Determinants.

B. Pipeline will calculate the

difference between "Actual Transportation Costs" and "Current

Transportation Costs." "Actual Transportation Costs" shall

include: [i] all costs of transactions identified in General

Terms and Conditions Section 15.7 or successor transactions;

[ii] reduced by any refunds of Account No. 858 costs received

for services rendered after January 31, 2000 consistent with the

cost responsibility of DTI and its customers during the refund

period; and [iii] further reduced by revenues received as a

result of Account No. 858 transportation capacity released. For

the purposes of determining Pipeline's costs incurred pursuant

to its Account No. 858 transactions with Tennessee Gas Pipeline

Company ("Tennessee") that are described in the RP00-15

Settlement, the monthly fuel retained by Tennessee shall

be valued using the Valuation Method defined in Section

15.5.E below.

C. If Actual Transportation Costs are less than Current

Transportation Costs, then fifty percent of any amount by

which Actual Transportation Costs are less than Current

Transportation Costs shall be returned to customers as

an adjustment to the Pipeline's Unrecovered Transportation

Cost Surcharge.

D. If Actual Transportation Costs exceed Current Transportation

Costs, Pipeline shall not include any amount by which Actual

Transportation Costs exceed Current Transportation Costs in

Pipeline's Unrecovered Transportation Cost Surcharge.

E. As used herein, the "Valuation Method" shall mean the arithmetic

average of the prices for Dominion North and South published in

Natural Gas Week on the table entitled "Spot Prices on Interstate

Pipeline Systems" in the column containing bid-week pricing for

the applicable month, or if this published price is not available,

an equivalent measure.

F. Revenue credits as valued pursuant to Sections 29.2 and 35.3.D.2

of these General Terms and Section 10.1.C. of Rate Schedule MCS

shall be returned to customers as an adjustment to the Pipeline's

Unrecovered Transportation Cost Surcharge.