Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 09/23/2000, Docket: RP00-555-000, Status: Effective

Original Sheet No. 1128 Original Sheet No. 1128 : Effective

GENERAL TERMS AND CONDITIONS

Transition Cost Adjustments

18. TRANSITION COST ADJUSTMENTS

This Section provides Pipeline with authorization to

recover from its Customers all prudently incurred costs

resulting from Pipeline's restructuring of services in

accordance with Order Nos. 636 et seq. "Transition costs,"

as defined herein, include (1) the balance of and

out-of-period adjustments to Pipeline's Account No. 191,

Unrecovered Purchased Gas Costs and certain amounts in

Pipeline's Account No. 186; (2) stranded costs under Order

No. 636 et seq. or their progeny; (3) the cost of any new

facilities required to be installed or contracts undertaken

in response to Order Nos. 636 et seq.; and (4) transition

costs incurred by the Pipeline from upstream pipeline

suppliers.

18.1 Unrecovered Purchased Gas and Transportation Costs. Upon

the implementation of its restructuring plan in Docket No.

RS92-14, Pipeline shall be entitled to direct bill and

receive from certain of its Customers its Unrecovered

Purchased Gas Cost balance then included in its Account No.

191, and its Unrecovered Transportation Cost sub-account

balance of Account No. 186 attributable to the sales

portion of Pipeline's Transportation Cost Rate Adjustment,

as well as any out-of-period adjustments to these accounts

made thereafter. The allocation factors for the

reservation billing units are set forth on Sheet No. 58.

A. Implementation. Pipeline shall be entitled to file

with the FERC Sheet No. 58 of Volume No. 1 of its FERC

Gas Tariff, setting forth the amount to be direct

billed in accordance with this Section 18.1 and the

allocation of the amount to each Customer. The filing

will be a limited Section 4 rate change filing. The

filing shall be accompanied by supporting workpapers

showing the Account No. 191 balance and Account No.

186 subaccount balance, any out-of-period adjustments,

and the allocation of costs among Customers.

Pipeline, from time to time, may make additional

limited Section 4 rate change filings to adjust its

direct bills as necessary to fully amortize the

balance in Account No. 191 and the subaccount balance

in Account No. 186. Any adjustments that Pipeline

makes to the filed level of its direct bills will be

based upon Commission acceptance of a notice of rate

change.

B. Subsequent filings. Pipeline shall file Reports,

together with workpapers, documenting the billing and

recovery of amounts accrued in Account 191 and the

subaccount balance in Account No. 186. Such reports

shall be made at least once each year and within 90

days of the end of all Account Nos. 191 and 186

billings.

C. Amortization Period. Customer shall, at its option:

(1) remit its allocated amount to Pipeline within 10

days of the day the bill is rendered; or (2) pay the

amount, including interest, over an amortization

period. If Customer elects option (2), Customer shall

execute a promissory note and tender it to Pipeline on

the date its full payment is due. The amortization