Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 09/01/2004, Docket: RP04-433-000, Status: Effective

Second Revised Sheet No. 1502 Second Revised Sheet No. 1502 : Effective

Superseding: First Revised Sheet No. 1502

GENERAL TERMS AND CONDITIONS

Crediting of Unauthorized Overrun Charge and Penalty Revenues

41. Crediting of Unauthorized Overrun Charge and Penalty Revenues

A. Pipeline shall credit each month a subaccount of Account No.

254 by the unauthorized overrun charges and penalty revenues, net

of Related Costs, received by Pipeline from its Customers. The

monthly unauthorized overrun charge and penalty revenues booked

into the subaccount shall be identified by Customer so that

Pipeline can determine the identity of Offending and Non-

Offending Customers. On June 30 of each year, Pipeline shall

credit the March 31 balance of the subaccount, including

Interest, to the appropriate Customers by means of a cash payment

via check or wire transfer. Where a credit amount due to any

Customer is less than $10,000, Pipeline shall have the option to

provide the amount by means of a credit to Customer's bill, which

shall be separately identified as such a credit.

B. Pipeline shall allocate unauthorized overrun and penalty

revenues received each month from transportation customers among

eligible Non-Offending Customers in proportion to transportation

reservation revenues received. Pipeline shall allocate the

unauthorized overrun and penalty revenues received each month

from storage customers attributable to capacity or inventory

overruns among eligible Non-Offending Customers in proportion to

storage capacity revenues received. Pipeline shall allocate the

unauthorized overrun and penalty revenues received each month

from storage customers attributable to withdrawal overruns among

eligible Non-Offending Customers in proportion to storage demand.

C. Within 30 days of the annual crediting of the amounts

required under this section, Pipeline shall file a report with

the Commission setting forth, by month, the amount of

unauthorized overrun and penalty revenues received from Offending

Customers, Related Costs that Pipeline netted against such

revenues and the unauthorized overrun and penalty revenues

allocated to each Non-Offending Customer. The report shall

detail the nature of Related Costs and the nexus between the

incurrence of Related Costs and the unauthorized overrun or

action that resulted in a penalty. To the extent that the

Commission finds that Pipeline has not demonstrated that the

"Related Costs" reported by Pipeline qualify as such under the

definition set forth in Section 41.E.1. below or that Pipeline

has not demonstrated that such costs were reasonably incurred

under the circumstances, Pipeline shall return any such amounts

to the relevant subaccount with interest.

D. Nothing in this Section 41 shall require Pipeline to refund

or credit either (1) the amounts identified as "To Be Retained By

DTI" on Sheet No. 39 of this Tariff or (2) the fuel gas retained

"in kind," in connection with an unauthorized overrun or penalty.

E. The following definitions shall apply to this Section 41:

1. "Related Costs" are all out-of-pocket costs incurred as a

direct result of an Offending Customer's unauthorized overrun,

failure to abide by an OFO, or other misconduct, to the extent

that Pipeline demonstrates that the costs are not already

recovered in rates.

2. "Non-Offending Customers" are Customers under firm service

Rate Schedules that were not assessed an Unauthorized Overrun

Service Charge or penalty by Pipeline in the applicable month.

3. "Offending Customers" are Customers that were assessed an

Unauthorized Overrun Service Charge or penalty by Pipeline in the

applicable month.