Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 09/23/2000, Docket: RP00-555-000, Status: Effective

Original Sheet No. 1188 Original Sheet No. 1188 : Effective







Construction of Delivery Tap Facilities


Related Costs incurred prior to the in-

service date of the Requested Facilities, which

shall be defined to include, but are not limited to,

operating and maintenance expenses, administrative

and general expenses, employee salaries on a time-

devoted basis and related expenses, taxes other than

income taxes, depreciation costs and the time value

of money, as set forth in a facilities agreement,

and (3) a gross-up for state and federal income

taxes, if applicable. Unless the Pipeline agrees to

allow the Requesting Customer to pay such costs at

some other time or in installments, any agreement

for Construction of Requested Facilities shall

provide that the Requesting Customer shall pay

Pipeline the costs of Construction and Related Costs

prior to the commencement of Construction. If

actual costs are not known, Pipeline shall be

entitled to bill the Requesting Customer based upon

estimated costs and the Requesting Customer shall be

required to pay such estimated costs, provided

however, upon determining its actual costs, Pipeline

shall have thirty days to either refund any excess

collections or bill for any under-collections, as

appropriate, to provide for the Pipeline's

collection of its actual costs, including the time

value of money. If DTI fails to use due diligence

in pursuing the construction of Requested Facilities

or the filing of the necessary governmental permits

and such failure delays the commencement of service

beyond 60 days of the agreed in-service date, DTI

will reimburse Requesting Customer the time value of

money advanced for each day beyond the agreed in-

service date at the FERC approved interest rate.


37.5 Pipeline may agree to pay all or part of the costs

of the Requested Facilities and their Construction,

Related Costs and tax gross up if the Construction

is economically or operationally beneficial to

Pipeline. In determining economic or operational

benefit, Pipeline may consider the following

factors, among others: costs of the Requested

Facilities and their Construction; the estimated

incremental throughput and/or revenues attributable

to the Requested Facilities; the Related Costs and

tax gross up attributable to the Requested

Facilities; the marketability of the capacity

associated with the Requested Facilities; the

location of the markets associated with the

Requested Facilities; the interruptible or firm

nature of the transportation service; the

availability of capital funds on terms and

conditions acceptable to Pipeline; the time value of

money; increased system or operational reliability

or flexibility; and increased access to new supplies

or markets.