Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 11/01/2002, Docket: RP02-551-000, Status: Effective

Third Revised Sheet No. 1119 Third Revised Sheet No. 1119 : Effective

Superseding: Second Revised Sheet No. 1119

GENERAL TERMS AND CONDITIONS

Fuel Retention Percentages

16. Fuel Retention Percentages

16.1 Purpose. Pipeline shall collect its System Gas Requirements, as

that term is defined in Section 16.6, below, pursuant to the

"Stipulation and Agreement" approved by the Commission in Pipeline's

Docket No. RP00-632,96FERC ¶61,288 (2001) ("RP00-632 Settlement").

16.2 Notice and Publication. Pipeline shall publish the effective fuel

retention percentages on Sheet Nos. 31 through 99 in Volume No. 1

of its FERC Gas Tariff and other applicable tariff sheets.

Except for the changes in fuel retention percentages described in

Article VI of the RP00-632 Settlement and required to implement

the terms of that settlement, Pipeline's fuel retention percentages

and its fuel retention mechanism, including the allocation percentages

and methodologies that underlie the fuel retention percentages, shall

remain in effect unchanged until modified in accordance with the

provisions of Article XI of the RP00-632 Settlement.

16.3 The RP00-632 Settlement allows Pipeline to collect 7.1 MMDt as an

Amortization Adder from its customers to be allocated 1.8105 MMDt

to Rate Schedule GSS, ISS, and MCS(balancing) ("storage

customers") and 5.2895 MMDt to Rate Schedule FT, FTNN, IT, and

MCS (wheeling) ("transportation customers"). Pipeline shall be

permitted to collect the Amortization Adder set forth on

Appendix D to the RP00-632 Settlement from the Effective Date

of the RP00-632 Settlement through the month that Pipeline has

completed the collection of the allocated portion of the Amortization

Adder from its storage customers and/or transportation customers.

Within 60 days of completing collection of the Amortization Adder

from Pipeline's storage customers and/or transportation customers,

in accordance with the terms of the RP00-632 Settlement, Pipeline shall

file a report detailing the actual quantities collected under the

Amortization Adder and any difference between the actual quantities

retained and the quantities allocated for collection from storage

customers and/or transportation customers, as appropriate. If the

report shows that Pipeline over collected the Amortization Adder

quantities, Pipeline shall make refunds to the affected customers by

crediting their invoices within 30 days of the filing of the report by

valuing the excess quantity collected using the Valuation Method

defined in Section 15.5.E of these General Terms.

16.4 On or before July 1, 2002, Pipeline shall submit to the parties

to the RP00-632 Settlement an interim status report for the 12 months

ending March 31, 2002, setting forth, by month, all actual system

natural gas receipts, deliveries and System Gas Requirements data by

month, in a form that would enable the parties to compare these data to

each of the system fuel retention percentages fixed by the RP00-632

Settlement.