Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 08/10/2002, Docket: RP02-388-000, Status: Effective

Second Revised Sheet No. 1125 Second Revised Sheet No. 1125 : Effective

Superseding: First Revised Sheet No. 1125

GENERAL TERMS AND CONDITIONS

Electric Power Cost Adjustment

C. The "Effective Period" is the twelve-month period commencing

with the effective date of any rate change made under this

Section 17.

D. The "Rate Determinants" are the projected Reservation and

Usage billing units for each of the Applicable Rate

Schedules for the Effective Period.

17.3 Filing and Effective Date. The effective EPCA under the

Applicable Rate Schedules is set forth on Sheet Nos. 31 through

99 in this Volume No. 1, and other applicable sheets in

Pipeline's FERC Gas Tariff. The effective date of each EPCA and

EPCA surcharge shall be November 1 of each year. Pipeline shall

also be entitled to make additional filings, as necessary, to

reflect periodic changes in Electric Power Costs. All filings

made by Pipeline pursuant to this Section 17 shall be made at

least 30 days prior to the effective date, and shall contain

detailed supporting workpapers to explain and justify the prior

year's actual costs and usage,projected costs and usage, and any

proposed adjustments to the rates, including the following

information by month and by function, as applicable: (1)

projected electric power utilization; (2) Projected Electric

Power Costs; and (3) the source(s) from which Pipeline expects to

purchase electric power or incur EPCs. Pipeline shall also

include, in each EPCA filing, computations showing the

derivation of such Adjustment.

17.4 Determination of EPCA.

A. The Current EPCA rate for each rate component of each Rate

Schedule shall be determined by dividing the Projected

Electric Power Costs by the applicable Rate Determinants.

Cost allocation and rate design will be done in a manner that

maintains the cost allocation and rate design that underlies

Pipeline's then-effective rates, which have been either

approved by the Commission or accepted by the Commission to

be effective subject to refund.

B. Pipeline will file and make effective new Current EPCA Base

Rates as part of Pipeline's annual filing made each November

1 and as part of Pipeline's future general rate filings made

under Section 4 of the Natural Gas Act and shall bear the

burden of proof on the reasonableness of such EPCA Base

Rates.

C. The EPCA Surcharge shall be the rates derived from the

Unrecovered EPC Reimbursement Subaccount balances pursuant to

Section 17.5.

17.5 Unrecovered EPC Reimbursement Subaccount. Pipeline shall

maintain as a subaccount of Account No. 186 the Unrecovered EPC

Reimbursement Subaccount, for the sole purpose of determining EPC

adjustments pursuant to this Section 17. The Unrecovered EPC

Reimbursement Subaccount will be debited or credited, as

appropriate, each month for the following:

A. the difference between collections under the EPCA and

Pipeline's actual Electric Power Costs; and

B. prior period adjustments to the Electric Power Costs

incurred by Pipeline; and