Dominion Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 09/01/2001, Docket: RP00-344-001, Status: Effective

Second Revised Sheet No. 1500 Second Revised Sheet No. 1500 : Effective

Superseding: Substitute First Revised Sheet No. 1500

GENERAL TERMS AND CONDITIONS

Imbalance Netting and Trading

40. Imbalance Netting and Trading.

A. Imbalance trading as described herein is

available to any Customer receiving service pursuant

to 18 C.F.R. Part 284 under Rate Schedules FT or IT

(excluding ITAGG). Customer may designate an agent to

trade imbalances on its behalf.

B. Pipeline will provide each Customer its best

available monthly imbalance data no later than the

ninth (9th) Business Day of the succeeding month.

Monthly imbalance quantities shall be netted across

all Part 284 Rate Schedule FT and IT contracts held by

Customer related to each Operational Impact Area

("Monthly Imbalance").

C. Pipeline shall allow Customers to trade their Monthly

Imbalances within the same Operational Impact Area if

the trade is an offsetting transaction between two

parties and results in a Monthly Imbalance quantity for

both parties closer to zero. During the Summer Period,

the Operational Impact Area shall be defined as

Pipeline's entire transmission system. During the

Winter Period, Pipeline's entire transmission system

shall be divided into two operational impact areas,

based on whether deliveries are made to points upstream

or downstream of Valley Gate Junction. Winter Period

Operational Impact Areas are necessary to ensure system

integrity, to preserve system reliability, and to

maintain adequate supplies and pressures to serve

Customers in accordance with this tariff and shall

remain in effect for the entire Winter Period; provided

however, Pipeline will monitor storage inventory levels

and weather throughout the Winter Period and if

conditions warrant, Pipeline shall post the return of

the system-wide Operational Impact Area on its EBB by

the 20th of the month preceding the month in which the

change will become effective.

D. To the extent authorized by Customer, Pipeline

shall post Customer's Monthly Imbalance(s) on its EBB,

which shall include quantities and, if applicable, any

relevant Operational Impact Area information.

Pipeline shall not be required to post zero

imbalances. Customer authorizations to post