Dominion Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 06/27/2001, Docket: RP01-349-002, Status: Effective

First Revised Sheet No. 1132 First Revised Sheet No. 1132 : Effective

Superseding: Original Sheet No. 1132

GENERAL TERMS AND CONDITIONS

Transition Cost Adjustments

3. Pipeline shall recover these Stranded Costs, less

1.38 percent allocated to Rate Schedule IT

customers in Pipeline's base rates, through a

surcharge on all Part 284 transportation

determined by averaging the following two

surcharges: (1) a surcharge determined by using

billing determinants that include 100 percent of

Part 284 FT and FTNN billing determinants,

excluding FT-GSS and FTNN-GSS billing

determinants; and (2) a surcharge determined by

using billing determinants that include 100

percent of Part 284 FT and FTNN billing

determinants, including FT-GSS and FTNN-GSS

billing determinants. The surcharge shall be

collected from Pipeline's Part 284 customers over

100 percent of the FT and FTNN reservation

billing units and 42 percent of the FT-GSS and

FTNN-GSS reservation billing units.

4. Pipeline shall be entitled to file revised tariff

sheets to become effective on August 1 of each

year, in accordance with this Section 18.2.A., to

revise the Stranded Cost surcharge set forth in

Appendices A and B of the Stipulation and

Agreement in Docket Nos. RP97-406, et al. Such

filings will be limited Section 4 rate changes

that will be made no less than 30 days prior to

the proposed effective date. Each annual filing

shall be accompanied by supporting workpapers

showing the principal amount of the Stranded

Costs, the estimated and actual interest accrued

on this principal at the FERC interest rate, any

adjustments thereto, the billing determinants and

the calculation of the unit surcharges to be

applied to the reservation charges. The

surcharges shall be designed to collect the

principal amount of stranded facility costs, plus

actual interest at the FERC rate, over the

reservation charge billing units that will be in

effect during the amortization period established

in Docket Nos. RP97-406, et al.