Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 05/27/2005, Docket: RP05- 51-001, Status: Effective

Sub Original Sheet No. 1506 Sub Original Sheet No. 1506 : Effective

GENERAL TERMS AND CONDITIONS

Allocation of Unsubscribed Firm Capacity

43.5 Evaluation Criteria and Award of Capacity (continued)

validation purposes. In the event that a participating bidder

challenges in writing Pipeline's failure to award the capacity to it,

Pipeline will reveal the reserve rate to the FERC Office of

Administrative Dispute Resolution, or another mutually agreeable

neutral third party, on a confidential basis to confirm that the

capacity was awarded in accordance with the Tariff.

B. Pipeline may establish objective and non-discriminatory factors

determined by Pipeline to be relevant to the granting of the request,

including the treatment of contingent bids, which shall be considered

in evaluating bids for capacity. Notice of any such factors to be

considered, and the methodology for applying or weighing those

factors, shall be posted on the EBB at the time Pipeline posts the

notice of available capacity under this Section 43.

C. Pipeline shall reject any bid that: (1) if accepted, would

detrimentally impact the operational integrity of Pipeline's system,

(2) contains terms and conditions inconsistent with those contained in

Pipeline's FERC Gas Tariff, (3) does not meet the minimum requirements

or conditions specified in the posting, or (4) if applicable, is for

less than the reserve rate established in accordance with Section

43.5.A. In addition, Pipeline shall have the right to reject any bid,

on a not unduly discriminatory manner, that: (5) is for less than the

Pipeline's maximum Commission-authorized rate applicable to the

service, (6) is made by a bidder not on Pipeline's approved bidder

list, (7) includes conditions or contingencies not specifically

allowed in the posting, or (8) purports to alter the bidder's

obligation to pay all applicable usage charges, surcharges, and any

other applicable charges and penalties.

D. To the extent that a bidder offers to pay rates in excess of any then-

applicable maximum rate component, Pipeline shall consider that bid to

be equivalent to the applicable maximum rate component for purposes of

awarding capacity. Pipeline shall evaluate valid bids based on one of

the following methods, as identified in the posted notice:

1. The highest net present value of the reservation charges or other

source of guaranteed revenue to be received by Pipeline over the

term of service; or,

2. The highest reservation charge bid, or other source of guaranteed

revenue, provided that such bid meets the Pipeline's stated terms.

A bid may be higher than the maximum tariff rate, but Pipeline

shall not consider that portion of such bid in its bid evaluation

process. In addition, to the extent other sources of guaranteed

revenue are considered in calculating the net present value, such

revenue shall be capped at the maximum recourse reservation rates.

3. An alternate objective method chosen by Pipeline, posted three days

prior to the date that capacity is posted for bid. Such method

must be applicable to all bidders, and not unduly discriminatory.

The method shall be objectively stated, with sufficient

specificity to reasonably determine and apply the method or

formula to be used and to rank all bids received, utilizing the

elements contained in the bid.