Dominion Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 08/20/2007, Docket: RP07-534-000, Status: Effective

Second Revised Sheet No. 1131 Second Revised Sheet No. 1131 : Effective

Superseding: First Revised Sheet No. 1131

GENERAL TERMS AND CONDITIONS

Transition Cost Adjustments

18.2 Stranded Costs. Pipeline shall recover from its Firm

Customers two types of Stranded Costs: Stranded Costs and

Stranded Account No. 858 Costs.

A. Stranded Costs.

1. Pipeline shall recover Stranded Costs from its

Customers by filing general rate change

applications with the Commission, in accordance

with the requirements of Section 4 of the Natural

Gas Act and 18 C.F.R. Section 154. The

eligibility and prudence of any claimed costs

shall be issues to be resolved in the Section 4

proceedings.

2. The Commission's test period regulations, 18

C.F.R. Section 154.303 shall be waived to permit

Pipeline to recover Stranded Costs incurred

outside the test period of the Section 4 filings.

Pipeline shall be permitted to defer recognition

of any Stranded Cost on its books of account

pending the resolution of the general Section 4

filings described in Section 18.2.A.1. In

instances involving Pipeline's sale of gathering

facilities to non-affiliated parties at a net

loss, Pipeline shall seek to recover such net

losses in the next general rate proceeding after

the incurrence or deferral of such costs, without

the requirement that Pipeline further unbundle

its gathering system. Pipeline shall seek to

recover other Stranded costs related to the

gathering system in the next general rate

proceeding after the incurrence or deferral of

such costs in which Pipeline seeks to further

unbundle its gathering rates. Pipeline shall

seek to recover other Stranded costs in the next

general rate proceeding after the incurrence or

deferral of such costs. Nothing in this Tariff

shall be deemed to prohibit Pipeline's recovery

of Stranded Costs in any Section 4 rate filing

after July 1, 1997.