Exhibit 10.1

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

   

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Operating and Power Sales Agreement

 

Among

 

Virginia Electric and Power Company,

 

New Dominion Energy Cooperative

 

And

 

Old Dominion Electric Cooperative

 

Dated: As of October 12, 2004

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 1

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TABLE OF CONTENTS

 

ARTICLE I    DEFINITIONS    9      1.01      Agreement    9      1.02     
Alternate Power Source    9      1.03      Auction Revenue Rights    9      1.04
     Buyer    9      1.05      Capability    9      1.06      Clover Facilities
   9      1.07      Clover Operating Agreement    10      1.08      Clover
Ownership Interest    10      1.09      Clover Purchase, Construction and
Ownership Agreement    10      1.10      Clover Unit(s)    10      1.11     
Common Facilities    10      1.12      Competitive Service Provider    10     
1.13      Congestion Relief Rights    10      1.14      Cooperative(s)    11  
   1.15      Cooperative System    11      1.16      Delivery Points    11     
1.17      Displacement Reserve Energy    11      1.18      Dominion Virginia
Power    11      1.19      Dominion Virginia Power Control Zone    11      1.20
     Dominion Virginia Power System    11      1.21      Economy Energy    11  
   1.22      Effective Date    12      1.23      EPT    12      1.24      Events
of Default    12      1.25      Executive Committee    12      1.26      FERC   
12      1.27      Financial Transmission Rights    12      1.28      Fixed
Monthly A&G Fee    12      1.29      Generator Interconnection Points    12     
1.30      Interest Rates.    12      1.31      Major Spare Parts    13      1.32
     Members    13      1.33      Monthly Reserve Energy Charge    13      1.34
     New Dominion    13      1.35      North Anna A&G Costs    13      1.36     
North Anna Facilities    13      1.37      North Anna Operating Committee    13
     1.38      North Anna Unit(s)    13      1.39      Nuclear Fuel    14     
1.40      Nuclear Fuel Agreement    14      1.41      Off-Peak Period    14     
1.42      Old Dominion    14      1.43      Old Dominion Accredited Non-firm
Energy    14      1.44      Old Dominion Delivered SEPA Energy    14      1.45
     Old Dominion Energy    14

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 2

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     1.46      Old Dominion Monthly Accredited Firm Capacity    15      1.47
     Old Dominion Monthly Accredited Non-firm Capacity    15      1.48      Old
Dominion Monthly Clover Capacity    15      1.49      Old Dominion Delivered
SEPA Capacity    15      1.50      Old Dominion Monthly North Anna Capacity   
15      1.51      Old Dominion North Anna Energy    15      1.52      Old
Dominion’s North Anna Percentage Ownership Interest    15      1.53      Old
Dominion Peaking Generation    16      1.54      Old Dominion Reserve Capacity
   16      1.55      Old Dominion Reserve Energy    16      1.56      On-Peak
Period    16      1.57      Open Access Transmission Tariff    16      1.58     
Operating Inventory    16      1.59      Parties    17      1.60      PJM    17
     1.61      PJM South    17      1.62      Planning and Administration
Committee    17      1.63      Prudent Utility Practices    17      1.64     
Purchase, Construction and Ownership Agreement    17      1.65      Replacement
Energy    17      1.66      Reserve Capacity Charge    18      1.67      SEPA   
18      1.68      Supplemental Energy    18      1.69      Support Facilities   
18      1.70      System Loss Percentage    18      1.71      System Reserve
Margin    18      1.72      Wholesale Power Contracts    18 ARTICLE II    NORTH
ANNA OPERATING COMMITTEE    19      2.01      North Anna Operating Committee   
19      2.02      Meetings and Voting Rights    19      2.03      Duties of
Operating Committee    19      2.04      Expenses of Operating Committee    20  
   2.05      Resolution of Disputes    20 ARTICLE III    PLANNING AND
ADMINISTRATION    21      3.01      Planning and Administration Committee    21
     3.02      Meetings    21      3.03      Duties of the Planning and
Administration Committee    21      3.04      Exchange of Information    22     
3.05      Expenses of the Planning and Administration Committee    22      3.06
     Resolution of Disputes    22      3.07      SEPA Contract    23 ARTICLE IV
   INTERCONNECTION AND PROTECTION OF SYSTEMS    24      4.01      Obligation for
Adequate Facilities    24      4.02      Protection of Systems    24

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 3

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ARTICLE V    DOMINION VIRGINIA POWER’S AUTHORITY AND RESPONSIBILITY WITH RESPECT
TO OLD DOMINION’S NORTH ANNA GENERATION    25      5.01      Dominion Virginia
Power as Agent of Old Dominion    25 ARTICLE VI    TRANSMISSION SERVICES    28  
   6.01      Responsibility for Network Integration Transmission Service and
Ancillary Services    28      6.02      Settlement for Ancillary Services    28
     6.03      Congestion Relief Rights    29      6.04      SEPA Capacity
Transmission Service    31 ARTICLE VII    ENTITLEMENTS TO CAPACITY AND ENERGY   
32      7.01      Entitlements of the Parties to Capacity and Energy    32
ARTICLE VIII    SUPPLEMENTAL ENERGY    33      8.00      Supplemental Energy
Transactions    33      8.01      Offer and Acceptance of Supplemental Energy.
   33      8.02      Quantity of Energy Sold    35      8.03      Settlement
with Dominion Virginia Power    35      8.04      Quantity of Supplemental
Energy Sold.    36      8.05      Bidding, Scheduling and Dispatch of Old
Dominion Resources Other Than Old Dominion Peaking Generation.    38      8.06
     Bidding, Scheduling and Dispatch of Old Dominion Peaking Generation.    38
     8.07      Additional Cooperative Responsibilities.    40      8.08     
Metering and Telemetry Requirements    40      8.09      Generation Costs    40
     8.10      Load Gain/Loss Notification    41      8.11      PJM Billing.   
41      8.12      Provision of Information.    41 ARTICLE IX    RESERVE CAPACITY
AND ENERGY    43      9.00      Sales of Reserve Capacity and Energy    43     
9.01      Reserve Capacity and Energy and Charges Therefor Related to the North
Anna Facilities and Clover Facilities    43      9.02      Reserve Capacity and
Reserve Capacity Charges for Jointly Planned Generation Resources    46 ARTICLE
X    BILLING    47      10.01      Billing Methods    47      10.02     
Rendering Bill    47      10.03      Payment    47      10.04      Methods of
Payment    47      10.05      No Arbitration; Resolution of Disputes    48     
10.06      Billing Adjustments    49      10.07      Credit Requirements    49

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 4

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ARTICLE XI    OPERATING COSTS    51      11.01      Operating Costs.    51     
11.02      Nuclear Fuel Costs    53 ARTICLE XII    ACCOUNTING MATTERS AND ACCESS
TO BOOKS AND RECORDS    54      12.01      Responsibility and Method of
Accounting    54      12.02      Right to Inspect Records, Etc.    54      12.03
     Confidentiality    56 ARTICLE XIII    LIABILITY, SERVICE INTERRUPTIONS AND
FORCE MAJEURE    58      13.01      Liability.    58      13.02     
Responsibility on Either Side of Generator Interconnection Points and Delivery
Points    59      13.03      Force Majeure    60      13.04      Remedy    61
ARTICLE XIV    REPRESENTATIONS AND WARRANTIES    62      14.01     
Representations and Warranties of Dominion Virginia Power    62      14.02     
Representations and Warranties of the Cooperatives.    63      14.03     
Conditions Precedent    64 ARTICLE XV    TERM OF AGREEMENT    65      15.01     
Term    65      15.02      Early Termination of Specified Provisions    65
ARTICLE XVI    FILING WITH FERC    67 ARTICLE XVII    DEFAULT    68      17.01
     Event of Default    68      17.02      Dominion Virginia Power’s Rights on
Default of a Cooperative    69      17.03      The Cooperatives’ Rights on
Default of Dominion Virginia Power    71      17.04      Disputes Concerning
Default    72      17.05      Additional Obligations    72      17.06     
Injunctive Relief    72      17.07      No Remedy Exclusive    73      17.08
     Agreement to Pay All Costs to Cure Default.    73      17.09      General
Covenant by the Parties    73 ARTICLE XVIII    MISCELLANEOUS    74      18.01
     No Delay    74      18.02      Further Documentation    74      18.03     
Notice    74      18.04      Headings Not to Affect Meaning    75      18.05
     No Association, Trust, Joint Venture or Partnership; Tax Matters    75     
18.06      Assignment    76      18.07      Counterparts    77

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 5

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     18.08      Severability    78      18.09      Applicable Law    78     
18.10      No Waiver    78      18.11      Computation of Time    78      18.12
     Survivorship of Obligations    78      18.13      Executive Committee    79
     18.14      Entire Agreement    79      18.15      Non-Exclusive Agreement
   79      18.16      Relationship of the Parties    79      18.17      Singular
and Plural    80      18.18      Good Faith    80      18.19      Merger of
Documents    80      18.20      Limitations of Parties’ Rights to Seek
Regulatory Review    80 ARTICLE XIX    AMENDMENT    81 APPENDIX A    COMMON
FACILITIES    83 APPENDIX B    MAJOR SPARE PARTS    86 APPENDIX C    NORTH ANNA
UNIT 1    92 APPENDIX D    NORTH ANNA UNIT 2    93 APPENDIX E    MEMBERS    94
APPENDIX F    SUPPORT FACILITIES    95 APPENDIX G    MONTHLY RESERVE ENERGY
CHARGES    98 APPENDIX H    DETERMINATION OF OLD DOMINION RESERVE ENERGY    100
APPENDIX I    CHARGES FOR RESERVE CAPACITY    101 APPENDIX J    CAPABILITY TABLE
FOR MARSH RUN AND LOUISA FACILITIES    102 APPENDIX K    DOMINION VIRGINIA POWER
MONTHLY STATEMENT TO THE COOPERATIVES    103 APPENDIX L    VIRGINIA POWER NORTH
ANNA NUCLEAR STATION NUCLEAR PRODUCTION AND
MAINTENANCE EXPENSES    104

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 6

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This OPERATING AND POWER SALES AGREEMENT, dated as of October 12, 2004, and
amending, restating, and superseding the Interconnection and Operating Agreement
Between Virginia Electric and Power Company and Old Dominion Electric
Cooperative Dated: As of December 28, 1982, Amended and Restated October 17,
1983, as amended on July 29, 1997 and October 10, 2002, among VIRGINIA ELECTRIC
AND POWER COMPANY (“Dominion Virginia Power”), a Virginia public service
corporation with its principal office at One James River Plaza, Richmond,
Virginia, and OLD DOMINION ELECTRIC COOPERATIVE (“Old Dominion”), a Virginia
utility aggregation cooperative with its principal office at 4201 Dominion
Boulevard, Glen Allen, Virginia, and NEW DOMINION ENERGY COOPERATIVE (“New
Dominion”), a Virginia utility aggregation cooperative with its principal office
at 4201 Dominion Boulevard, Glen Allen, Virginia (each, individually, a “Party,”
together, the “Parties”), provides as follows:

 

WHEREAS, Dominion Virginia Power is a public service corporation engaged in
furnishing electric utility service in portions of Virginia and North Carolina,
and as such owns and operates facilities for the generation, transmission and
distribution of electricity within those states; and

 

WHEREAS, Old Dominion, a utility aggregation cooperative organized and existing
under the laws of the Commonwealth of Virginia and comprising, of among others,
the Members, is charged with the responsibility of providing power and energy to
its Members either through generation facilities owned by it or by the purchase
of power and energy from others; and

 

WHEREAS, Dominion Virginia Power has sold and Old Dominion has purchased an
ownership interest in the North Anna Facilities and the Nuclear Fuel used or to
be used for the North Anna Facilities; and

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 7

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WHEREAS, Dominion Virginia Power, through the Interconnection and Operating
Agreement Between Dominion Virginia Power and Old Dominion Dated: December 28,
1982, as amended and restated October 17, 1983, July 29, 1997 and October 10,
2002 (“Interconnection and Operating Agreement”), agreed to operate Old
Dominion’s portion of such generation, supplying to it at the Generator
Interconnection Points such electricity as is generated from Old Dominion’s
portion of these facilities; and

 

WHEREAS, pursuant to this Agreement, Dominion Virginia Power will continue to
operate Old Dominion’s portion of the North Anna Facilities and supply such
electricity as is generated from Old Dominion’s portion of these facilities at
the interconnection between the North Anna Nuclear Power Station and the
Dominion Virginia Power transmission system; and

 

WHEREAS, Dominion Virginia Power and Old Dominion each hold a fifty-percent
undivided interest in the two unit, coal-fired Clover Power Station, and
Dominion Virginia Power has agreed to operate and supply to Old Dominion such
electricity that is generated from Old Dominion’s portion of that facility at
the interconnection between the Clover Power Station and the Dominion Virginia
Power transmission system; and

 

WHEREAS, the Members and the other members of Old Dominion have formed, and are
in the process of organizing and implementing, New Dominion to, among other
things, assume their ownership of and become the sole member of Old Dominion and
to assume Old Dominion’s all-requirements wholesale power sales contracts with
the Members and also to assume purchase contracts necessary to supply the loads
of the Members; and

 

WHEREAS, the Cooperatives will require capacity and energy in an amount
exceeding that available from Old Dominion’s portion of generation at North Anna
and Clover and may desire to purchase supplemental electric service from
Dominion Virginia Power, or from others, or to construct and operate additional
generation facilities of their own pursuant to the terms and conditions of this
Agreement; and

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 8

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WHEREAS, Dominion Virginia Power has filed with the Virginia State Corporation
Commission an application for permission to join PJM, and PJM’s rules will apply
to both Dominion Virginia Power and the Cooperatives as of the date on which
Dominion Virginia Power joins PJM; and

 

WHEREAS, Dominion Virginia Power and the Cooperatives desire to enter into this
Agreement which supersedes the Interconnection and Operating Agreement and
includes revised terms, conditions, and pricing under which Dominion Virginia
Power will provide, among other things, the Cooperatives supplemental energy and
reserve capacity and energy.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 9

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NOW, THEREFORE, in consideration of the premises and the mutual obligations
hereafter stated, the Parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

The following definitions shall be included as part of this Agreement. Other
terms used herein shall have the respective meanings set forth in the Purchase,
Construction and Ownership Agreement, the Nuclear Fuel Agreement, the Clover
Agreements and the Open Access Transmission Tariff.

 

1.01 Agreement. This Operating and Power Sales Agreement dated as of October 12,
2004, among Dominion Virginia Power and the Cooperatives.

 

1.02 Alternate Power Source. Any source of energy that provides Displacement
Reserve Energy. Dominion Virginia Power shall be an Alternate Power Source to
the extent it supplies such energy on terms and conditions other than those set
forth in this Agreement.

 

1.03 Auction Revenue Rights. The right to receive the revenue from the Financial
Transmission Rights auction provided for in the FERC Electric Tariff, Sixth
Revised Volume No. 1 of the PJM Interconnection, L.L.C, or any successor tariff.

 

1.04 Buyer. Prior to the date New Dominion gives notice that it has undertaken
the power purchase rights and obligations under this Agreement, the term “Buyer”
shall mean Old Dominion. On and after that date, the term “Buyer” shall mean New
Dominion.

 

1.05 Capability. The net summer or winter (as applicable) rating of a generating
unit or other power supply resource, measured in megawatts, as determined in
accordance with PJM criteria, provided that the Capability shall be no greater
than the amount of Network Integration Transmission Service that is available
from each generating plant.

 

1.06 Clover Facilities. The coal-fired generating units located in Halifax
County, Virginia (“Clover”) designed as Clover Unit 1 and Clover Unit 2, and the
related real property, equipment and facilities, as more specifically defined in
the Clover Purchase, Construction and Ownership Agreement, wherever located,
that are properly chargeable to Clover Unit 1 or Clover Unit 2 under the Uniform
System of Accounts.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 10

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1.07 Clover Operating Agreement. The Clover Operating Agreement Between Virginia
Electric and Power Company and Old Dominion Electric Cooperative Dated as of May
31, 1990.

 

1.08 Clover Ownership Interest. The respective fee simple undivided ownership
interest, expressed as a percentage, in the Clover Facilities owned by each
Party, as may be modified from time to time pursuant to the Clover Agreements.

 

1.09 Clover Purchase, Construction and Ownership Agreement. The Clover Purchase,
Construction and Ownership Agreement Between Old Dominion Electric Cooperative
and Virginia Electric and Power Company Dated as of May 31, 1990.

 

1.10 Clover Unit(s). Either or both of Unit 1 or Unit 2 at the Clover
Facilities.

 

1.11 Common Facilities. All those facilities, including but not limited to both
real and personal property, exclusive of North Anna Unit 1, North Anna Unit 2,
Support Facilities, Nuclear Fuel, Operating Inventory and Major Spare Parts
which are purchased, leased or otherwise obtained only in connection with the
construction, operation and maintenance of more than one nuclear unit located at
North Anna Nuclear Power Station. Common Facilities are more specifically
described in Appendix A.

 

1.12 Competitive Service Provider. A person licensed by the Virginia State
Corporation Commission to sell or offer to sell a competitive energy service
within the Commonwealth of Virginia.

 

1.13 Congestion Relief Rights. Financial Transmission Rights and Auction Revenue
Rights as defined by the PJM Agreements or any successor rights which are
intended to serve as a hedge against congestion costs.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 11

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1.14 Cooperative(s). Either or both of Old Dominion Electric Cooperative and New
Dominion Energy Cooperative.

 

1.15 Cooperative System. The generation, transmission, distribution and other
facilities owned or leased by the Cooperatives or the Members in Dominion
Virginia Power Control Zone as shown on their books of account from time to time
and located in the area in which Dominion Virginia Power provides requirements
service at wholesale or retail as of the Effective Date.

 

1.16 Delivery Points. The points at which power is delivered from the Dominion
Virginia Power System to the Cooperative System.

 

1.17 Displacement Reserve Energy. The amount of energy, at generation level, by
which Buyer’s purchase of Old Dominion Reserve Energy from Dominion Virginia
Power is reduced pursuant to Section 9.01(c).

 

1.18 Dominion Virginia Power. Virginia Electric and Power Company, a Virginia
public service corporation, and its successors and assigns.

 

1.19 Dominion Virginia Power Control Zone. The geographic area within which
Dominion Virginia Power maintained its own control area prior to joining PJM.

 

1.20 Dominion Virginia Power System. The generation, transmission, distribution
and other facilities owned by Dominion Virginia Power within the Dominion
Virginia Power Control Zone as shown on its books of accounts from time to time
or facilities leased by Dominion Virginia Power within the Dominion Virginia
Power Control Zone.

 

1.21 Economy Energy. Energy that Buyer has the right to purchase from Dominion
Virginia Power pursuant to Article VIII that Buyer instead purchases from
sources other than Dominion Virginia Power.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 12

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1.22 Effective Date. The latest of (1) November 1, 2004, (2) the date on which
FERC permits this Agreement to become effective, if this Agreement is filed at
FERC; or (3) the date on which Dominion Virginia Power becomes a member of PJM.

 

1.23 EPT. Eastern prevailing time.

 

1.24 Events of Default. The events of default pursuant to Section 17.01 hereof.

 

1.25 Executive Committee. The committee as provided in Section 18.13 hereof.

 

1.26 FERC. The Federal Energy Regulatory Commission, including any successor
governmental agency.

 

1.27 Financial Transmission Rights. The right to receive transmission congestion
credits pursuant to the FERC Electric Tariff Sixth Revised Volume No. 1 of the
PJM Interconnection, LLC or any successor tariff.

 

1.28 Fixed Monthly A&G Fee. The fixed amount of monthly North Anna A&G Costs to
be paid by Old Dominion for administration and general services performed by
Dominion Virginia Power on behalf of the North Anna plant and its employees, as
described in Section 11.01(b) and Appendix L.

 

1.29 Generator Interconnection Points. The points at which the Old Dominion
generation resources are connected to the Dominion Virginia Power System.

 

1.30 Interest Rates.

 

(a) Special Interest Rate. A rate per annum equal to the prime rate of J.P.
Morgan Chase & Co., New York, New York, or its successor, in effect from time to
time plus three percentage points (3%).

 

(b) Regular Interest Rate. In the case of interest payments owing to Dominion
Virginia Power or a Cooperative pursuant to this Agreement, an interest rate per
annum equal to the prime rate of J.P. Morgan Chase & Co., or its successor, as
in effect from time to time.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 13

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1.31 Major Spare Parts. Those major items designated by the Parties that the
Parties keep in inventory for possible use in replacing similar items in units
located not only at the North Anna Nuclear Power Station but also at other power
stations. The parts that shall be designated as Major Spare Parts for purposes
of this Agreement shall be designated by the Parties in Appendix B. Thereafter,
Major Spare Parts shall be designated by the North Anna Operating Committee
established under Article II of this Agreement. The Major Spare Parts are
further described, and the methods of calculating the percentage ownership and
cost responsibilities of the Parties in the Major Spare Parts are also included
in Appendix B.

 

1.32 Members. Those cooperatives listed in Appendix E including their successors
and assigns.

 

1.33 Monthly Reserve Energy Charge. The monthly charge for Old Dominion Reserve
Energy as calculated pursuant to Article IX and Appendix G hereof.

 

1.34 New Dominion. New Dominion Energy Cooperative, a Virginia utility
aggregation cooperative, and its successors and assigns.

 

1.35 North Anna A&G Costs. Any administrative and general costs directly
attributable to North Anna pursuant to Article XI.

 

1.36 North Anna Facilities. North Anna Unit 1, North Anna Unit 2, at the nuclear
generating plant located in Louisa, Orange and Spotsylvania Counties, Virginia,
and the associated Common Facilities, the Support Facilities, the Operating
Inventory, and the Major Spare Parts, but excluding nuclear fuel, which is the
subject of the Nuclear Fuel Agreement.

 

1.37 North Anna Operating Committee. The committee (“Operating Committee”) as
provided in Article II hereof.

 

1.38 North Anna Unit(s). Either or both of Unit 1 or Unit 2 at the North Anna
Facilities(more specifically described in Appendix C hereto), representing the
cost of all additions, improvements, betterments and replacements thereto, but
excluding the Common Facilities, the Support Facilities, the Nuclear Fuel, the
Operating Inventory and the Major Spare Parts.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 14

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1.39 Nuclear Fuel. For the purpose of this Agreement, Nuclear Fuel shall have
the meaning as defined in the Nuclear Fuel Agreement.

 

1.40 Nuclear Fuel Agreement. The Nuclear Fuel Agreement Between Virginia
Electric and Power Company and Old Dominion Electric Cooperative Dated: As of
December 28, 1982, Amended and Restated October 17, 1983.

 

1.41 Off-Peak Period. The hours that the Buyer does not designate as the On-Peak
Period pursuant to Section 8.01(e)(i) and (ii).

 

1.42 Old Dominion. Old Dominion Electric Cooperative, a Virginia utility
aggregation cooperative, and its successors and assigns.

 

1.43 Old Dominion Accredited Non-firm Energy. The energy associated with the Old
Dominion Monthly Accredited Non-firm Capacity.

 

1.44 Old Dominion Delivered SEPA Energy. The energy associated with the Old
Dominion Delivered SEPA Capacity.

 

1.45 Old Dominion Energy. The combined Members’ energy requirements measured at
the Delivery Points less Old Dominion Delivered SEPA Energy, as such energy may
be available from time to time, less energy supplied by Competitive Service
Providers, at the Delivery Points with such difference being adjusted for losses
to reflect energy at the generation level by multiplying by the factor of 100
divided by 100 minus the System Loss Percentage. If PJM adopts a loss
methodology different from the methodology that was in effect when the Parties
executed this Agreement, the Parties shall make appropriate modifications to
this Agreement to reflect the new methodology.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 15

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1.46 Old Dominion Monthly Accredited Firm Capacity. Monthly firm capacity owned
or obtained by the Cooperatives and that is determined by the Planning and
Administration Committee in accordance with Prudent Utility Practice as not
requiring reserves.

 

1.47 Old Dominion Monthly Accredited Non-firm Capacity. Monthly non-firm
capacity owned or obtained by the Cooperatives and that is determined by the
Planning and Administration Committee in accordance with Prudent Utility
Practice as requiring reserves.

 

1.48 Old Dominion Monthly Clover Capacity. For each Clover Unit, the Capability
of such unit multiplied by Old Dominion’s Clover Ownership Interest. The total
Old Dominion Monthly Clover Capacity shall be the sum of such capacity for
Clover Unit 1 and Clover Unit 2. Such capacity shall be treated as Old Dominion
Monthly Accredited Non-Firm Capacity.

 

1.49 Old Dominion Delivered SEPA Capacity. The total megawatts of monthly
capacity delivered at the Delivery Points in accordance with contract(s) between
SEPA and Members.

 

1.50 Old Dominion Monthly North Anna Capacity. For each generating unit at the
North Anna Nuclear Power Station, the Capability of such unit multiplied by Old
Dominion’s North Anna Percentage Ownership Interest. The total Old Dominion
Monthly North Anna Capacity shall be the sum of such capacity for North Anna
Units 1 and 2.

 

1.51 Old Dominion North Anna Energy. The energy associated with Old Dominion
Monthly North Anna Capacity.

 

1.52 Old Dominion’s North Anna Percentage Ownership Interest. Except as
otherwise modified by the operation of Sections 15.03, 16.01 or 16.02 of the
Purchase, Construction and Ownership Agreement, an undivided ownership interest
in the North Anna Facilities equal to 11.6% in each of North Anna Unit 1, North
Anna Unit 2, the Common Facilities, the Operating Inventory and the Major Spare
Parts, and a percentage in the Support Facilities as determined in accordance
with Appendix F.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 16

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1.53 Old Dominion Peaking Generation. The five-unit peaking generation
facilities of Old Dominion with an initial maximum summer generating capability
of 459 MW and an initial maximum winter generating capability of 541 MW, located
in Louisa County, Virginia and the three-unit peaking generation facilities of
Old Dominion with an initial maximum summer generating capability of 465 MW and
an initial maximum winter generating capability of 567 MW, located at Marsh Run,
Virginia.

 

1.54 Old Dominion Reserve Capacity. An amount in kilowatts equal to: the sum of
(a) the actual Old Dominion Monthly North Anna Capacity and (b) the actual Old
Dominion Monthly Accredited Non-firm Capacity, such sum multiplied by the System
Reserve Margin.

 

1.55 Old Dominion Reserve Energy. The total amount of energy at 100% capacity
factor that could have been provided by Old Dominion Monthly North Anna Capacity
and any other Old Dominion Monthly Accredited Non-firm Capacity for which
Dominion Virginia Power provides reserves when the resource is subject to full
or partial outage conditions (planned, unplanned, scheduled or unscheduled
outages and including any deration of generation units), less Old Dominion
Accredited Non-firm Energy that could have been produced but was not produced
for economic dispatch reasons, less Old Dominion North Anna Energy, less Old
Dominion Accredited Non-firm Energy, less Displacement Reserve Energy.

 

1.56 On-Peak Period: The hours designated by Buyer pursuant to Section
8.01(e)(i) and (ii).

 

1.57 Open Access Transmission Tariff. Dominion Virginia Power’s Open Access
Transmission Tariff, and any successors thereto, including the transmission
tariff of PJM Interconnection, LLC, filed with, accepted, and permitted to go
into effect by FERC.

 

1.58 Operating Inventory. Equipment, spare parts, tools, goods and supplies
(excluding Nuclear Fuel and Major Spare Parts) to be used solely for the
operation, maintenance or modification of the North Anna Units and recorded on
Dominion Virginia Power’s books of accounts in accordance with the Uniform
System of Accounts.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 17

--------------------------------------------------------------------------------

 

1.59 Parties. Dominion Virginia Power, Old Dominion and New Dominion.

 

1.60 PJM. The Pennsylvania-New Jersey-Maryland Interconnection, LLC.

 

1.61 PJM South. The control area of Dominion Virginia Power as recognized by the
North American Electric Reliability Council prior to the date on which Dominion
Virginia Power joined PJM.

 

1.62 Planning and Administration Committee. The committee as provided in Article
III hereof.

 

1.63 Prudent Utility Practices. Any of the practices, methods, and acts engaged
in or accepted by a significant portion of the electric utility industry at the
time the decision was made, or any of the practices, methods, and acts that, in
the exercise of reasonable judgment in light of the facts known at the time the
decision was made, would have been expected to accomplish the desired result at
a reasonable cost consistent with reasonable reliability, safety, expedition and
protection of the environment. Prudent Utility Practices are not intended to be
limited to the optimum practices, methods, or acts to the exclusion of all
others, but rather to a spectrum of possible practices, methods, or acts engaged
in or accepted by a significant portion of the electric utility industry at the
time the decision was made.

 

1.64 Purchase, Construction and Ownership Agreement. The Purchase, Construction
and Ownership Agreement Between Virginia Electric and Power Company and Old
Dominion Electric Cooperative Dated: As of December 28, 1982 Amended and
Restated October 17, 1983.

 

1.65 Replacement Energy. Energy supplied by Buyer that replaces energy that
would have been supplied by Old Dominion Peaking Generation but for the
circumstances specified in Section 8.04(b)(ii)(C) of this Agreement.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 18

--------------------------------------------------------------------------------

 

1.66 Reserve Capacity Charge. The monthly charge for Old Dominion Reserve
Capacity as determined pursuant to Appendix I hereof.

 

1.67 SEPA. The Southeastern Power Administration, including any successor
governmental agency.

 

1.68 Supplemental Energy. Energy that Dominion Virginia Power supplies to meet
the loads of the Members pursuant to Article VIII.

 

1.69 Support Facilities. All those facilities, wherever situated, including, but
not limited to, both real and personal property, exclusive of Common Facilities,
Nuclear Fuel, Operating Inventory and Major Spare Parts, which are purchased,
leased or otherwise obtained for the construction, operation and maintenance of
one or more nuclear unit(s) located at the North Anna Nuclear Power Station and
one or more nuclear unit(s) located at Dominion Virginia Power’s Surry Nuclear
Power Station or at such other location as Dominion Virginia Power may have an
interest in any nuclear facility. Support Facilities, and investment and cost
responsibilities of the Parties therefore, are more specifically described in
Appendix F hereto.

 

1.70 System Loss Percentage. The losses, expressed as a percentage, incurred on
the Dominion Virginia Power System, calculated in accordance with the procedures
of PJM in delivering capacity and energy from the generation level to the
Delivery Points.

 

1.71 System Reserve Margin. The percent reserve margin used in determining the
Forecast Pool Requirement in accordance with the PJM South Reliability Assurance
Agreement, as it may change from time to time, adjusted for PJM South zonal
diversity.

 

1.72 Wholesale Power Contracts. The several wholesale power contracts between
Buyer and the Members for the purchase of electric energy and capacity by the
Members from Buyer, as in effect from time to time.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 19

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ARTICLE II

NORTH ANNA OPERATING COMMITTEE

 

2.01 North Anna Operating Committee. To coordinate operations in carrying out
the terms of this Agreement associated with the North Anna Facilities, Dominion
Virginia Power will appoint four members and Old Dominion will appoint two
members to the North Anna Operating Committee (“Operating Committee”). Each
member of the Operating Committee shall be fully authorized to act on behalf of
its Party with respect to all matters contemplated by this Agreement but will
not be authorized to alter or amend this Agreement. Each Party shall notify the
other in writing of the names of the persons who will serve as the members of
the Operating Committee and, if desired, the names of any persons who may serve
as alternates when the members are unable to act. Dominion Virginia Power’s
members may be changed, in Dominion Virginia Power’s sole discretion and from
time to time, by at least ten (10) days’ prior written notice to Old Dominion.
Old Dominion’s members may be changed, in Old Dominion’s sole discretion and
from time to time, by at least ten (10) days’ prior written notice to Dominion
Virginia Power.

 

2.02 Meetings and Voting Rights. Meetings shall be held at the discretion of the
Operating Committee but at least shall be held semi-annually. Minutes of each
meeting shall be kept and shall be approved by the Operating Committee at its
next meeting. Decisions of the Operating Committee shall be made upon vote by
the Operating Committee with the voting power of each Party determined by its
entitlement to the capability of North Anna Units 1 and 2 as provided in Section
2.03 of the Purchase, Construction and Ownership Agreement.

 

2.03 Duties of Operating Committee. The Operating Committee shall, subject to
Dominion Virginia Power’s authority and obligations under Article V and any
other limitations in this Agreement, act upon those matters relating to the
coordination of the operation of the North Anna Facilities necessary for the
implementation of this Agreement.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 20

--------------------------------------------------------------------------------

 

2.04 Expenses of Operating Committee. The expenses of each member of the
Operating Committee, and his alternative and associates, shall be borne by the
Party he represents. Other expenses of the Operating Committee will be shared as
agreed upon by the Operating Committee. Any expense not agreed to unanimously by
the Operating Committee shall be borne by the Party incurring it.

 

2.05 Resolution of Disputes. If any disputes should arise regarding the
operating function that cannot be resolved by the Operating Committee, the
dispute and the circumstances surrounding such dispute shall be presented to the
Executive Committee, which is empowered in Section 18.13 to resolve such
disputes.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 21

--------------------------------------------------------------------------------

 

ARTICLE III

PLANNING AND ADMINISTRATION

 

3.01 Planning and Administration Committee. In order to carry out the terms of
this Agreement, Dominion Virginia Power will appoint three members and the
Cooperatives will appoint three members to the Planning and Administration
Committee. Each member of the Planning and Administration Committee shall be
fully authorized to act on behalf of its Party with respect to all matters
contemplated by this Agreement but will not be authorized to alter or amend the
Agreement. Each Party shall notify the other Parties in writing of the names of
the persons who will serve as the members of the Planning and Administration
Committee and, if desired, the names of any persons who may serve as alternates
when the members are unable to act. Dominion Virginia Power’s members may be
changed in Dominion Virginia Power’s sole discretion and from time to time, by
at least ten (10) days’ prior written notice to the Cooperatives. The
Cooperatives’ members may be changed, in the Cooperatives’ sole discretion and
from time to time, by at least ten (10) days’ prior written notice to Dominion
Virginia Power.

 

3.02 Meetings. Meetings shall be held at the discretion of the Planning and
Administration Committee but at least shall be held semi-annually.

 

3.03 Duties of the Planning and Administration Committee.

 

(a) The Planning and Administration Committee shall be responsible for the
general administration of this Agreement in accordance with Prudent Utility
Practices. In addition, the Planning and Administration Committee may, but is
not obligated to, consider joint planning of future generation facilities. The
Planning and Administration Committee will also discuss new governmental
regulations, issues and changes in the industry in which the Parties have a
mutual interest, establish committees required for the orderly administration of
the Agreement but not specifically provided for in the Agreement, and address
any other matter in which cooperation, coordination or agreement is necessary.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 22

--------------------------------------------------------------------------------

 

(b) For the purposes of joint planning, the Cooperatives shall furnish Dominion
Virginia Power annually, prior to January 1, a forecast of their system loads
for at least the succeeding ten (10) year period. Dominion Virginia Power shall
furnish the Cooperatives annually, prior to January 1, a forecast of its system
loads for at least the succeeding ten (10) year period and its target reserve
level. If either the Cooperatives or Dominion Virginia Power makes an official
revision to the forecasts during the year, notification of such revision shall
be given in writing to the other Parties in a timely fashion. Each Party shall
provide an explanation of any significant deviation from historic trends in its
forecast.

 

(c) The Planning and Administration Committee shall establish bidding,
scheduling, forecasting, administrative and operational practices related to the
matters set out in Article VIII and shall resolve any disputes that may arise
related to those matters and other operational issues.

 

3.04 Exchange of Information. Each Party will make available to the other
Parties, upon request, information used in, or useful to, the administration of
this Agreement. Other specific rights for information are covered in other parts
of this Agreement.

 

3.05 Expenses of the Planning and Administration Committee. Each Party shall pay
all expenses of its representatives. Other expenses incurred by the committee
will be shared as agreed upon by the Planning and Administration Committee. Any
expense not agreed to unanimously by the Planning and Administration Committee
shall be borne by the Party incurring it.

 

3.06 Resolution of Disputes. If any disputes relating to the duties of the
Planning and Administration Committee should arise that cannot be resolved by
the Planning and Administration Committee, the dispute and the circumstances
surrounding such dispute shall be presented to the Executive Committee, which is
empowered in Section 18.13 to resolve such disputes.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 23

--------------------------------------------------------------------------------

 

3.07 SEPA Contract. The Parties agree that if and when Dominion Virginia Power’s
contract with SEPA is changed from time to time, the Planning and Administration
Committee shall recommend to the Parties such modifications in this Agreement as
are necessary to conform with any such changes.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 24

--------------------------------------------------------------------------------

 

ARTICLE IV

INTERCONNECTION AND PROTECTION OF SYSTEMS

 

4.01 Obligation for Adequate Facilities. Dominion Virginia Power and the
Cooperatives are each obligated to provide, on its own system or through this
Agreement and other arrangements, generation adequate to serve expected loads
and to maintain all such facilities in a suitable condition of repair so that
they may be operated in accordance with Prudent Utility Practices and not impose
a burden on any other system.

 

4.02 Protection of Systems. The Cooperatives shall refrain from, and shall
require the Members to refrain from, any acts, transactions, and uses of
equipment, appliances or devices which may have a significant adverse effect
upon the reliability or characteristics of the Dominion Virginia Power System.
Dominion Virginia Power shall refrain and shall require its customers to refrain
from any acts, transactions, and uses of equipment, appliances or devices which
may have a significant adverse effect upon the reliability or characteristics of
the Cooperative System.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 25

--------------------------------------------------------------------------------

 

ARTICLE V

DOMINION VIRGINIA POWER’S AUTHORITY AND RESPONSIBILITY WITH

RESPECT TO

OLD DOMINION’S NORTH ANNA GENERATION

 

5.01 Dominion Virginia Power as Agent of Old Dominion.

 

(a) Old Dominion hereby appoints Dominion Virginia Power (such appointment shall
be irrevocable for the term of this Agreement and coupled with an interest) its
sole agent, subject, however, to Old Dominion’s right of reasonable inspection
through authorized representatives, to act on its behalf for the operation,
maintenance, modifications and fueling (including the procurement of Nuclear
Fuel), of the North Anna Facilities and authorizes Dominion Virginia Power in
the name of and on behalf of Old Dominion to take all reasonable actions which,
in the discretion and judgment of Dominion Virginia Power, are deemed necessary
or advisable to effect the operation, maintenance, modifications and fueling
(including the procurement of Nuclear Fuel) of the North Anna Facilities,
including, without limitation, the following:

 

(i) the making of such agreements and modifications of existing agreements and
the taking of such other action as Dominion Virginia Power deems necessary or
appropriate, in its sole discretion, or as may be required under the regulations
or directives of such governmental bodies and regulatory agencies having
jurisdiction, with respect to the operation, maintenance, modifications and
fueling (including the procurement of Nuclear Fuel) of the North Anna
Facilities;

 

(ii) the execution and filing with such governmental bodies and regulatory
agencies having jurisdiction over applications, amendments, reports and other
documents and filings for or in connection with licensing, operation and other
regulatory matters with respect to the North Anna Facilities; and

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 26

--------------------------------------------------------------------------------

 

(iii) the receipt on Old Dominion’s behalf of any notice or other communication
from any governmental body or regulatory agency having jurisdiction as to any
licensing, operation or other regulatory matter with respect to the North Anna
Facilities.

 

(b) As relates to all third parties, this agency designation shall be binding on
Old Dominion, and such appointment shall be deemed in effect by each third party
until termination of this Agreement pursuant to the terms hereof and until such
third party receives written notification from Dominion Virginia Power of any
termination thereof.

 

(c) Dominion Virginia Power accepts such appointment. In discharging all of its
duties and responsibilities hereunder, Dominion Virginia Power will act in good
faith and in accordance with Prudent Utility Practices. Dominion Virginia
Power’s duties and responsibilities shall include, but not be limited to,
establishing organizational structure and manpower requirements, maintaining an
adequate work force through Dominion Virginia Power’s personnel administration
policies, arranging and procuring necessary or desirable materials and services
for operation of the North Anna Facilities, determining scheduled outages for
routine inspections, refueling and general maintenance, scheduling, dispatching
and loading of the North Anna Facilities, preparing and filing applications,
reports and other documents relating to operation of the North Anna Facilities,
establishing reasonable rules for visits to the North Anna Facilities, and
determining the need for, and subsequently constructing, any capital additions
or modifications to the North Anna Facilities.

 

Dominion Virginia Power shall not, solely because of Old Dominion’s ownership
interest in the North Anna Facilities, make any adverse distinctions in
operation, maintenance, modifications, fueling, scheduling, or dispatching as
between the North Anna Facilities and any other generating unit or facilities in
which Dominion Virginia Power has an ownership interest. Nothing herein shall
interfere with Dominion Virginia Power’s authority and responsibility for the

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 27

--------------------------------------------------------------------------------

 

operation of, maintenance of, modifications to, fueling of, and improvements to
all of its other generation facilities. Dominion Virginia Power shall make
available upon request by Old Dominion regularly prepared monthly reports which
contain specific information on all generating facilities including, but not
limited to, operating expenses, maintenance expenses, fuel expenses, generating
statistics, fuel reports, operating statistics and other information reasonably
available. Dominion Virginia Power will also have the right to submit data
relating to operation of the North Anna Facilities to any other entity. Old
Dominion will make available all information or data necessary for Dominion
Virginia Power to schedule and dispatch generation.

 

(d) Old Dominion agrees that it will take all necessary action in a prompt
manner to execute any agreements for the operation, maintenance, modifications
and fueling of the North Anna Facilities as and when requested by Dominion
Virginia Power to permit Dominion Virginia Power to carry out its authority and
responsibilities pursuant to this Section 5.01.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 28

--------------------------------------------------------------------------------

 

ARTICLE VI

TRANSMISSION SERVICES

 

6.01 Responsibility for Network Integration Transmission Service and Ancillary
Services. Buyer shall be the Transmission Customer under the Open Access
Transmission Tariff for this Agreement, and shall pay for all its costs
associated with Network Integration Transmission Service and Ancillary Services
under the Open Access Transmission Tariff, other than any Transmission Service
and Ancillary Services that SEPA self-supplies or pays for and supplies to the
Members.

 

6.02 Settlement for Ancillary Services.

 

(a) During the period in which Article VIII is in effect, the Cooperatives and
Dominion Virginia Power will settle, through monthly billing, credits and
charges by PJM associated with the provision of Regulation Service and Spinning
Reserves Service by North Anna and Clover. Dominion Virginia Power will receive
all credits and charges from PJM associated with the supply of Regulation
Service and Spinning Reserves Service by the Old Dominion Monthly Clover
Capacity and the Old Dominion Monthly North Anna Capacity. Dominion Virginia
Power will credit to Buyer a portion of PJM’s charges to the Cooperatives for
Regulation Service and Spinning Reserves Service for the Old Dominion Energy.
Buyer’s share of such credits in each hour shall equal the ratio of the output
of energy in the hour from the Old Dominion Monthly Clover Capacity, the Old
Dominion Monthly North Anna Capacity and the Old Dominion Reserve Energy
purchased from Dominion Virginia Power to the Old Dominion Energy multiplied by
the hourly charge for Regulation Service and Spinning Reserves Service paid by
the Cooperatives to PJM for the Old Dominion Energy.

 

(b) During the period in which Article VIII is in effect, settlement for
Operating Reserves for the Old Dominion Monthly Clover Capacity and the Old
Dominion Monthly North Anna Capacity shall be as follows: (i) Dominion Virginia
Power shall receive all generator Operating

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 29

--------------------------------------------------------------------------------

 

Reserve Service credits and charges from PJM associated with the Old Dominion
Monthly Clover Capacity and the Old Dominion Monthly North Anna Capacity; and
(ii) Dominion Virginia Power shall credit to Buyer a share of PJM’s charges to
the Cooperatives for day-ahead Operating Reserve Service for the load of the
Members. This credit shall be equal to the ratio of the day ahead hourly
scheduled energy from the Old Dominion Monthly Clover Capacity and the Old
Dominion Monthly North Anna Capacity and the Old Dominion Reserve Energy
purchased from Dominion Virginia Power to the hourly Old Dominion Energy
multiplied by the hourly charges to the Cooperatives for day-ahead Operating
Reserve Service. Dominion Virginia Power shall bid energy from the Clover
Facilities and the North Anna Facilities in the PJM day-ahead market.
Alternatively, if both Parties agree, the Cooperatives may transfer to Dominion
Virginia Power through bilateral contracts the obligation for the supply of
Regulation Service and Spinning Reserve Service and Operating Reserve Service
for the portion of the load of the Members that is served by Old Dominion’s
ownership interests in North Anna and Clover and the purchase of Old Dominion
Reserve Energy.

 

6.03 Congestion Relief Rights. This Article 6.03 shall be effective during the
period in which Article VIII is in effect.

 

(a) Dominion Virginia Power shall assume all congestion risk and cost exposure,
both positive and negative, in connection with the transmission of energy from
the Old Dominion Monthly North Anna Capacity, the Old Dominion Monthly Clover
Capacity and the Old Dominion Peaking Generation, including all Replacement
Energy priced at the respective generator LMP, to the loads of the Members and
in connection with the supply of Old Dominion Reserve Energy and Supplemental
Energy purchased from Dominion Virginia Power, in exchange for receiving the
monetary value of the Cooperatives’ Congestion Relief Rights for the Members
other than Congestion Relief Rights related to the SEPA allocations of the
Members.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 30

--------------------------------------------------------------------------------

 

(b) The Cooperatives will request Congestion Relief Rights that are associated
with the loads of the Members (less Congestion Relief Rights associated with
SEPA) that are allocated by PJM at no cost to the Cooperatives for load in the
Dominion Virginia Power Control Zone as directed by Dominion Virginia Power.
Unless the Parties agree otherwise, Dominion Virginia Power will not request
that the Cooperatives bid for Congestion Relief Rights that require the
Cooperatives to allocate credit facilities. Except as provided in this Section
6.03(b) and Section 6.03(c) the Cooperatives will use any such Congestion Relief
Rights as an offset to congestion costs. Buyer will settle with Dominion
Virginia Power any differences between such Congestion Relief Rights and the
congestion costs from Old Dominion generation to the loads of the Members.
Alternatively, if the Parties agree, they may use bilatereal agreements to
achieve this objective.

 

(c) When Buyer purchases Economy Energy to serve the loads of Members, Buyer
shall be responsible for payment of the congestion costs related to such
purchases, but Dominion Virginia Power shall reimburse Buyer for such congestion
costs as follows: (i) Dominion Virginia Power shall pay to Buyer an amount
determined by multiplying the value of the combined Congestion Relief Rights of
Dominion Virginia Power and the Cooperatives in the hour in which Buyer
purchases Economy Energy for the Members by the ratio of such Economy Energy
purchase to the sum of the loads of Dominion Virginia Power and the Members less
loads served by SEPA and Competitive Service Providers in the hour; and (ii) in
any month, the amounts paid by Dominion Virginia Power to the Cooperatives in
connection with transmission congestion associated with purchases of Economy
Energy in bilateral transactions shall not exceed the amount paid by the
Cooperatives for congestion costs in connection with such purchases. If PJM
calculates the congestion component of the load LMP the Parties may agree to
utilize the calculated congestion instead of an allocation of the value of the
Combined Congestion Relief Rights in determining the amount of Dominion Virginia
Power’s reimbursement to Buyer for congestion associated with purchases from the
PJM LMP market.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

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Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 31

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(d) The Cooperatives shall coordinate with Dominion Virginia Power to assist it
in the planning, nomination and allocation process for purposes of mitigating
transmission congestion for the Congestion Relief Rights planning period that
includes the date on which service under this Agreement commences. Dominion
Virginia Power shall coordinate with the Cooperatives to assist them in the
planning, nomination and allocation process for purposes of mitigating
transmission congestion for any portion of a Congestion Relief Rights planning
period that extends beyond the date on which the Supplemental Energy provisions
of Article VIII hereof terminate.

 

(e) Notwithstanding the foregoing: (i) If the Cooperatives purchase any
Congestion Relief Rights in addition to those that Dominion Virginia Power
directs them to obtain, the Cooperatives shall bear all of the risks and enjoy
all the benefits of such additional purchases; and (ii) Any procurement of
Congestion Relief Rights by Dominion Virginia Power, other than the Congestion
Relief Rights that are allocated to Dominion Virginia Power at no cost for the
loads of its customers in the Dominion Virginia Power Control Zone, shall be
excluded from the calculations set out in Section 6.03(b) and (c).

 

6.04 SEPA Capacity Transmission Service. Old Dominion Delivered SEPA Capacity
and Old Dominion Delivered SEPA Energy will be transmitted to the Delivery
Points pursuant to the Open Access Transmission Tariff.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 32

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ARTICLE VII

ENTITLEMENTS TO CAPACITY AND ENERGY

 

7.01 Entitlements of the Parties to Capacity and Energy. Subject to the
provisions of Sections 15.03, 16.01 and 16.02 of the Purchase, Construction and
Ownership Agreement, Old Dominion shall be entitled to 11.6% of the capacity and
energy from North Anna Units 1 and 2. Subject to the provisions of Sections
15.03, 16.01 and 16.02 of the Purchase, Construction and Ownership Agreement,
Dominion Virginia Power shall be entitled to the balance of the capacity and
energy from each unit.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 33

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ARTICLE VIII

SUPPLEMENTAL ENERGY

 

8.00 Supplemental Energy Transactions. Dominion Virginia Power will sell and
deliver and Buyer will purchase and receive Supplemental Energy at the Delivery
Points as more specifically set forth in this Article VIII.

 

8.01 Offer and Acceptance of Supplemental Energy.

 

(a) Day-Ahead Schedule. If Buyer desires to receive an offer from Dominion
Virginia Power for Supplemental Energy, Buyer must provide to Dominion Virginia
Power a schedule of its projected Supplemental Energy requirements and its
designations of the On-Peak Period and the Off-Peak Period not later than 8:00
AM EPT of the day prior to the date for physical delivery of Supplemental
Energy. Buyer may provide schedules for any subsequent days as well, but once it
has provided such advance schedules, it shall not revise them without the
consent of Dominion Virginia Power, which consent will not be unreasonably
withheld. Buyer shall make reasonable efforts to base its schedule on its hourly
load forecast for the day of delivery. If Buyer does not provide Dominion
Virginia Power a schedule by 8:00 AM EPT of the last day before the date for
physical delivery, Dominion Virginia Power shall have no obligation to provide
Supplemental Energy to Buyer for such day.

 

(b) Offer of Supplemental Energy. Not later than 8:45 AM EPT of each day on
which Buyer provides Dominion Virginia Power a schedule pursuant to Section
8.01(a), either Dominion Virginia Power may contact Buyer to offer Supplemental
Energy for delivery on the next day (and any subsequent days as appropriate) or
Buyer may contact Dominion Virginia Power to request an offer price for
Supplemental Energy. If Buyer requests an offer of Supplemental Energy for the
next day (or subsequent days as appropriate), Dominion Virginia Power must make
such an offer. If neither Party contacts the other by 8:45 AM EPT of the day
prior to the date on which power would be delivered, Dominion Virginia Power
shall have no obligation to provide Supplemental Energy to Buyer for such day.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 34

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(c) Dominion Virginia Power’s Offer Price for Supplemental Energy. Any offer by
Dominion Virginia Power to provide Supplemental Energy shall be made at a price
that is stated separately for the On-Peak Period and the Off-Peak Period that is
identified as a fixed price or an indexed price. The price for Supplemental
Energy shall not exceed the Maximum Price for Supplemental Energy derived by the
following formula:

 

Maximum Price for Supplemental Energy = (Heat Rate x Gas Index) +

Variable O&M and Start-up Charge

 

Where:

 

Heat Rate = 7.2 MMBTU/MWH

 

Gas Index = Gas Daily midpoint price for Zone 6 NNY in dollars per MMBTU (or if
Gas Daily does not publish such price, a similar industry-based index price
agreed upon by the Parties) in effect as of 10 a.m. on the day on which the
energy is delivered. For purposes of the indexed price offer, the price offered
shall be an indicative price based on the price at which gas is trading at the
time. The actual sales price with respect to the indexed price offer will be
based on the published Gas Index price for the day on which the energy is
delivered.

 

Variable O&M and Start-up Charge = $4.00/MWH

 

(d) Buyer’s Response to the Offer Price. In any instance in which Dominion
Virginia Power makes an offer to provide Supplemental Energy, Buyer shall
immediately inform Dominion Virginia Power as to whether, for either or both of
the On-Peak Period and the Off-Peak Period, it accepts Dominion Virginia Power’s
offer to provide Supplemental Energy.

 

(e) On-Peak Period and Off-Peak Period.

 

(i) For the months of June, July, August and September, Buyer shall designate,
during each day-ahead call with Dominion Virginia Power, an On-Peak Period that
shall be a minimum period of ten (10) consecutive clock hours during the
calendar day.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 35

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(ii) For the months of January, February, March, April, May, October, November
and December, Buyer shall designate, during each day-ahead call with Dominion
Virginia Power, an On-Peak Period consisting of either (1) any ten (10)
consecutive hours chosen by Buyer; or (2) the sixteen (16) consecutive hours
between the hours of 7:00 A.M. and 11:00 P.M. EPT.

 

(iii) The Off-Peak Period consists of any hours that are not included in the
On-Peak Period.

 

8.02 Quantity of Energy Sold. For each On-Peak Period or Off-Peak Period as to
which Buyer has accepted Dominion Virginia Power’s offer to provide Supplemental
Energy, Dominion Virginia Power will sell to Buyer a quantity of energy equal to
the day-ahead schedule that Buyer provided to Dominion Virginia Power pursuant
to Section 8.01(a). The Parties will schedule this sale with PJM as a bilateral
transaction.

 

8.03 Settlement with Dominion Virginia Power. Dominion Virginia Power and Buyer
shall settle charges and credits for Ancillary Services pursuant to Section 6.02
and shall settle charges and credits for Congestion Relief Rights pursuant to
Section 6.03. In addition, on a monthly basis, Buyer shall pay Dominion Virginia
Power a Supplemental Energy Fee, an Excess Energy Fee, a Reservation Fee, and a
Contract Fee. The fees are as further described below:

 

(a) Supplemental Energy Fee: For each hour, the price for Supplemental Energy,
as calculated pursuant to Section 8.01(c), multiplied by the quantity of
Supplemental Energy sold, as calculated pursuant to Section 8.04.

 

(b) Excess Energy Fee. For each hour, the real-time LMP for the Dominion
Virginia Power load zone (or, if a separate load zone is established for the
points of delivery to the Members, the Cooperatives’ load zone) multiplied by
any energy that Dominion Virginia Power supplies to Buyer pursuant to Section
8.02 that exceeds the Supplemental Energy as calculated pursuant to Section
8.04.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 36

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(c) Reservation Fee. A monthly reservation fee of $1.19/ kW-Month multiplied by
550,000 kW, or $654,500 per month, reduced as follows: In any hour in which Old
Dominion’s bid of Old Dominion Peaking Generation is accepted by PJM in the
day-ahead market or the Old Dominion Peaking Generation is dispatched in real
time, the demand fee shall be reduced by an amount equal to $14.00 multiplied by
the greater of (i) the MWH of energy accepted in the day-ahead market from the
Old Dominion Peaking Generation or (ii) the sum of the MWH of energy dispatched
from the Old Dominion Peaking Generation plus the MWH of any Replacement Energy
supplied to serve the loads of the Members, but in neither case greater than the
lower of 550 MW per hour or the remaining load that otherwise would have been
served using Supplemental Energy. Notwithstanding the foregoing, Dominion
Virginia Power shall not make any net payment to the Cooperatives over the
course of any contract year in connection with this reservation fee.

 

(d) Contract Fee. A monthly contract fee of $41,667.00.

 

8.04 Quantity of Supplemental Energy Sold.

 

(a) Limitation on Supplemental Energy to Buyer Schedule. The quantity of
Supplemental Energy that Dominion Virginia Power sells to Buyer in each hour
shall be the lesser of the amount of Buyer’s schedule submitted to Dominion
Virginia Power pursuant to Section 8.01 or the amount calculated in Section
8.04(b) below.

 

(b) Further Limitation on Hourly Sales of Supplemental Energy. The quantity of
Supplemental Energy that Dominion Virginia Power sells to Buyer in each hour
shall be no greater than the amount derived from the following calculation.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 37

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(i) Calculate the lesser of (A) Old Dominion Energy; or (B) the sum of the
Capability of the Old Dominion Peaking Generation, the Old Dominion Monthly
Clover Capacity and the Old Dominion Monthly North Anna Capacity.

 

(ii) Adjust the amount determined in (b)(i) above as follows:

 

(A) Subtract the total amount of energy that could have been delivered at 100%
capacity factor from Old Dominion Monthly North Anna Capacity and Old Dominion
Monthly Clover Capacity;

 

(B) Subtract the greater of the following for the Old Dominion Peaking
Generation:

 

(1) The amount of energy bid by the Cooperatives that PJM accepted in the
day-ahead market; or

 

(2) The amount of energy that is dispatched in real time by PJM;

 

(C) If (1) the Cooperatives do not submit a bid to PJM for any Old Dominion
Peaking Generation unit or any Old Dominion Peaking Generation unit is not
available for dispatch or is not capable of producing energy at an amount equal
to its maximum seasonal net dependable capacity as set forth in Appendix J, as
may be revised from time to time, and (2) the real-time LMP for the nodal point
for that hour exceeds the price that the Cooperatives would have bid for the
unit based on Section 8.06(c) with start-up costs allocated over the unit’s
minimum run time, subtract the amount of energy that PJM would have dispatched
from the unit if it had been available or, in the case of a partial derate,
subtract the additional amount of energy that PJM would have dispatched from the
unit if it had been fully available. A unit’s minimum run time equals the
minimum run time used by the Cooperatives in bidding such unit into PJM.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 38

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8.05 Bidding, Scheduling and Dispatch of Old Dominion Resources Other Than Old
Dominion Peaking Generation.

 

(a) Bidding and Scheduling of Old Dominion’s Base Load Generation: Dominion
Virginia Power shall bid and dispatch the Old Dominion Monthly Clover Capacity
and the Old Dominion Monthly North Anna Capacity into PJM in the same way as it
bids and dispatches its own shares of those units.

 

(b) SEPA Capacity and Energy. The capacity and energy that SEPA allocates to the
Members will be dispatched pursuant to other existing and future agreements.

 

(c) Cooperatives’ Load Management System. At Dominion Virginia Power’s request,
the Cooperatives shall call on Bear Island Paper Company (“BIPCO”) to reduce its
load pursuant to the BIPCO agreement, if there is a BIPCO agreement in place
that permits the Cooperatives to do so at the time.

 

8.06 Bidding, Scheduling and Dispatch of Old Dominion Peaking Generation.

 

(a) All Old Dominion Peaking Generation must be in commercial operation by the
Effective Date.

 

(b) Bidding and Scheduling Practices. The Cooperatives shall bid and schedule
the Old Dominion Peaking Generation into PJM in compliance with PJM
requirements.

 

(c) Calculation of Bid Price: The Cooperatives shall calculate a bid price for
each unit of the Old Dominion Peaking Generation for each hour, regardless of
whether the unit is available to produce energy. The Cooperatives’ calculation
of the bid price shall be consistent with the PJM bidding rules and Cost
Development Guidelines, excluding above-cost adders. The Cooperatives shall make
commercially reasonable efforts to minimize the bid price

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 39

--------------------------------------------------------------------------------

 

of the Old Dominion Peaking Generation. Appendix J includes some of the
parameters that will be used in determining the bid price. In addition to those
parameters, the cost of fuel is a primary driver and will change the bid price
from day to day. The cost of fuel to be used in the bid price will consist of
three components: (i) the fuel price; (ii) transportation cost of providing that
fuel; and (iii) fuel imbalance risks that either can be predetermined or are
measurable risk components. Fuel imbalance risk incorporates, among other
things, the timing risk in the PJM rules due to gas nominations having to be
made prior to PJM’s determination of unit dispatch. Also, the real-time bid
price may be different than the day-ahead bid price based on fuel supply and
imbalance risk on an intra-day basis.

 

(d) Gas Supply. Dominion Virginia Power or any affiliate may make an offer to
the Cooperatives to supply gas for the Old Dominion Peaking Generation. If
Dominion Virginia Power or any affiliate does so, the Cooperatives shall either
accept the offer from Dominion Virginia Power for gas supply and use such
pricing in their calculation of the bid price pursuant to Section 8.06(c) or
shall secure gas from other sources but submit bids to PJM no higher than bids
based on the price at which Dominion Virginia Power or its affiliates offered to
supply gas to the Cooperatives. Any arrangement for the supply of gas to the Old
Dominion Peaking Generation will be pursuant to a separate contract. No Dominion
Virginia Power offer to supply gas to the Cooperatives will be manipulated to
cause or attempt to cause the Cooperatives to dispatch the Old Dominion Peaking
Generation to serve the Members’ loads in the Dominion Virginia Power Control
Zone differently than if this Agreement did not exist.

 

(e) Sharing of Margins on Dispatch of Old Dominion Peaking Generation. The
Cooperatives shall pay to Dominion Virginia Power an amount equal to (i) the
amount by which the average Locational Marginal Price that the Cooperatives
receive for Old Dominion Peaking Generation exceeds the average of the
incremental operating costs of the Old Dominion Peaking Generation units that
were dispatched in the hour (including start-up costs, if

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 40

--------------------------------------------------------------------------------

 

applicable) multiplied by (ii) the amount, if any, by which the energy that was
dispatched from the first 550 MW of Old Dominion Peaking Generation exceeds the
amount of such energy that was needed to serve the loads of the Members.

 

8.07 Additional Cooperative Responsibilities.

 

(a) Economy Energy: In any hour in which Buyer does not purchase Supplemental
Energy from Dominion Virginia Power, Buyer shall be responsible for the purchase
of Economy Energy in an amount equal to the Supplemental Energy. Dominion
Virginia Power has no obligation to supply such energy to Buyer pursuant to this
Agreement.

 

(b) Each Party shall settle with PJM pursuant to its Operating Agreement with
PJM.

 

(c) Capacity: The Cooperatives shall be responsible for all of their PJM
capacity obligations in the Dominion Virginia Power Control Zone. The
Cooperatives shall designate the Old Dominion Monthly North Anna Capacity, the
Old Dominion Monthly Clover Capacity, SEPA allocations of the Members if
applicable, and the Old Dominion Peaking Generation as Designated Capacity
Resources.

 

8.08 Metering and Telemetry Requirements. The Cooperatives shall provide
Dominion Virginia Power the totalized real-time load data, as it is made
available, for the loads of the Members and for the Old Dominion Peaking
Generation in accordance with the generator interconnection and operation
agreements for the Old Dominion Peaking Generation and in accordance with the
requirements of PJM. The Cooperatives may authorize, in writing, the System
Operations Center to provide such data to Energy Supply. Such consent shall be
consistent with the FERC Order No. 2004 Standards of Conduct.

 

8.09 Generation Costs. Each Party will be responsible for all costs, including
fuel, associated with its own generation resources.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 41

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8.10 Load Gain/Loss Notification. Consistent with Prudent Utility Practices, the
Cooperatives will notify Dominion Virginia Power in advance of any anticipated
event that is expected to result in a material change in the loads of the
Members; provided, however, that weather-related fluctuations in such loads are
exempt from the notice requirement. Such notice applies to large load customers
(in excess of 5 MW) of the Members and any retail choice activity that results
in a difference in load, notwithstanding any further rules and requirements as
may be set forth to accommodate retail access.

 

8.11 PJM Billing.

 

(a) Dominion Virginia Power and the Cooperatives will develop the appropriate
mechanisms to analyze their PJM bills and to settle amounts between them on a
monthly basis as necessary to preserve each Party’s respective costs and
benefits as included in this Article VIII and Article VI. Each Party has the
right to receive the necessary information, including the appropriate PJM
e-suite data, of the other Party in order to calculate and verify the PJM bills
and billing adjustments under this Article VIII and Article VI.

 

(b) The provisions of this Article VIII relating to the charges for services
provided by PJM are based on the Parties’ understanding of the billing practices
of PJM. If any Party notifies the other Parties that its understanding of PJM’s
billing practices as reflected in this Article VIII and Article VI is different
from PJM’s actual practices, and asserts that such difference has an adverse
effect on the notifying Party, the Parties shall address such issues in good
faith to achieve the Parties’ original intent.

 

8.12 Provision of Information.

 

(a) Old Dominion shall provide to Dominion Virginia Power all unit, cost and
performance data for the Old Dominion Peaking Generation relevant to this
Article VIII on an ongoing basis. Dominion Virginia Power shall perform adequate
review and verification of such data.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 42

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(b) The Parties shall provide each other all of the information that is
reasonably needed to implement and administer this Article VIII, including but
not limited to all information that is listed on Appendix J.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 43

--------------------------------------------------------------------------------

 

ARTICLE IX

RESERVE CAPACITY AND ENERGY

 

9.00 Sales of Reserve Capacity and Energy. Dominion Virginia Power will sell and
deliver and Buyer will purchase and receive Reserve Capacity and Energy at the
Generation Interconnection Points as more specifically set forth in this Article
IX.

 

9.01 Reserve Capacity and Energy and Charges Therefor Related to the North Anna
Facilities and Clover Facilities.

 

(a) During the term of this Agreement, Buyer will purchase and Dominion Virginia
Power will provide Old Dominion Reserve Capacity for Old Dominion’s ownership
interest in North Anna Unit 1 and North Anna Unit 2 and Clover Unit 1 and Clover
Unit 2 until each of these units is retired or Old Dominion’s ownership interest
in any of such units is reduced to zero. For Old Dominion Monthly North Anna
Capacity and Old Dominion Monthly Clover Capacity, the Cooperatives shall carry
a percentage of generation reserves equal to the System Reserve Margin. Dominion
Virginia Power agrees to sell and Buyer agrees to purchase Old Dominion Reserve
Capacity at the rates set forth in Appendix I.

 

(b) During the period in which Article VIII is in effect, and except as provided
in Section 9.01(c)(ii), Old Dominion Reserve Energy for the North Anna
Facilities and Clover Facilities shall be sold by Dominion Virginia Power and
purchased by Buyer at the same pricing and for the same On-Peak Periods and
Off-Peak Periods at which Dominion Virginia Power offers to sell Supplemental
Energy to Buyer. For any hour as to which Dominion Virginia Power does not make
an offer to provide Supplemental Energy to Buyer, but for which Buyer purchases
Old Dominion Reserve Energy, the charge for Old Dominion Reserve Energy shall be
established based on an after-the-fact calculation of the price of Supplemental
Energy as calculated in Section 8.01(c). For the period after the termination of
Article VIII, the charge for Old Dominion Reserve Energy shall be calculated
pursuant to Appendix G. The quantity of Old Dominion Reserve Energy shall be
determined pursuant to Appendix H.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 44

--------------------------------------------------------------------------------

 

(c) Buyer may displace all or any portion of its purchases of Old Dominion
Reserve Energy from Dominion Virginia Power by purchasing such energy from an
Alternate Power Source. Such energy shall be deemed Displacement Reserve Energy.
Buyer may provide Displacement Reserve Energy in accordance with the schedules
provided by Buyer or its reserve energy suppliers to Dominion Virginia Power
and, if required, PJM. Such schedule shall indicate whether the source of the
Displacement Reserve Energy is from a specific Alternate Power Source or from a
default purchase of hourly energy from the PJM marketplace. Dominion Virginia
Power shall not be obligated to provide Old Dominion Reserve Energy or
Supplemental Energy to replace any Displacement Reserve Energy scheduled by
Buyer. During the period in which Article VIII is in effect, the following
procedures shall apply to any schedules of Displacement Reserve Energy.

 

(i) For Displacement Reserve Energy associated with an outage at the Clover
Facilities or the North Anna Facilities that has been scheduled at least three
business days in advance, Buyer may schedule Displacement Reserve Energy for
either or both of the On-Peak and Off-Peak Periods as follows. Buyer shall not
vary the hourly amount of Displacement Reserve Energy during an On-Peak Period
or an Off-Peak Period except as necessary as a result of ramping a North Anna
Unit or a Clover Unit into or out of service. Buyer shall notify Dominion
Virginia Power of the initiation of a schedule of Displacement Reserve Energy
for either or both of the On-Peak Period and the Off-Peak Period not later than
the time at which Buyer makes its response to a Dominion Virginia Power offer
price on a day-ahead basis pursuant to Section 8.01(d) (or, if Dominion Virginia
Power has not made an offer pursuant to Section 8.01(b), by not later than 8:45
AM EPT); provided that Dominion Virginia Power shall accommodate such schedule
or schedule change on shorter notice in the event of an emergency that may
affect the reliability of service to Members.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 45

--------------------------------------------------------------------------------

 

(ii) For Displacement Reserve Energy associated with an outage at the Clover
Facilities or the North Anna Facilities that has not been scheduled at least
three business days in advance, Buyer may purchase Displacement Reserve Energy
as follows:

 

A. Buyer may not vary the amount of Displacement Reserve Energy scheduled during
an On-Peak Period or an Off-Peak Period except pursuant to Section 9.01(c)(ii) B
or D or to ramp a North Anna Unit or a Clover Unit into or out of service.

 

B. Buyer may purchase Displacement Reserve Energy beginning no earlier than the
commencement of the first clock hour after the start of the outage and beginning
no later than the commencement of the fourth clock hour after the start of the
outage, pursuant to notice provided to Dominion Virginia Power not less than 45
minutes prior to the commencement of the clock hour. If Buyer does not begin
purchasing Displacement Reserve Energy by the commencement of the fourth clock
hour after the start of the outage, it shall not purchase Displacement Reserve
Energy for the remainder of the On-Peak or Off-Peak Period in which the fourth
clock hour commences.

 

C. Except as provided in Section 9.01(c)(ii)B, Buyer shall notify Dominion
Virginia Power of the initiation of a schedule of Displacement Reserve Energy
during the Initial Outage Period not less than 45 minutes prior to the beginning
of the On-Peak Period or the Off-Peak Period when the schedule will take effect.

 

D. Buyer shall notify Dominion Virginia Power of the initiation of schedules of
Displacement Reserve Energy and Old Dominion Reserve Energy

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 46

--------------------------------------------------------------------------------

 

during the Secondary Outage Period pursuant to schedules provided not later than
the time specified in Section 9.01(c)(i). Buyer shall not vary the schedule of
Old Dominion Reserve Energy purchased from Dominion Virginia Power during an
On-Peak Period or an Off-Peak Period in the Secondary Outage Period except to
accommodate the ramping of a North Anna Unit or a Clover Unit into service;
provided that Buyer may increase its schedule of Old Dominion Reserve Energy
purchased from Dominion Virginia Power by a fixed amount of no more than 50% of
its hourly Reserve Energy requirements for a minimum of six consecutive hours in
any On-Peak Period in the Secondary Outage Period.

 

E. After the end of the Secondary Outage Period, Buyer’s schedules of
Displacement Reserve Energy shall conform to the requirements set out in Section
9.01(c)(i).

 

F. The “Initial Outage Period” shall be from the start of an outage at the
Clover Facilities or the North Anna Facilities that has not been scheduled at
least three business days in advance until the beginning of the first calendar
day after Buyer has the opportunity to submit a day-ahead schedule pursuant to
Section 8.01(a). The Secondary Outage Period shall begin when the Initial Outage
Period terminates and shall last for a maximum of five calendar days, or less at
the discretion of Buyer.

 

9.02 Reserve Capacity and Reserve Capacity Charges for Jointly Planned
Generation Resources. For future generation resources jointly planned by
Dominion Virginia Power and the Cooperatives, the Cooperatives and Dominion
Virginia Power shall at all times carry a percentage of generation reserves
equal to the annually projected System Reserve Margin. If Dominion Virginia
Power provides the necessary reserves for the jointly planned generation
resource to the Cooperatives, the Planning and Administrative Committee shall
determine the price of such reserves.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

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Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 47

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ARTICLE X

BILLING

 

10.01 Billing Methods. Billings for all payments due under this Agreement shall
be substantially in the format provided in Appendix K.

 

10.02 Rendering Bill. Each Party shall render to the appropriate Parties monthly
a billing statement no later than the twentieth day of the month, transmitted by
wire or delivered by courier, covering the charges for rendering services under
the Agreement. Notwithstanding the foregoing, the Parties shall reflect the
true-up in charges and credits by PJM no later than the second monthly bill that
each Party presents to the other after receiving the charges and credits
information from PJM.

 

10.03 Payment.

 

(a) Payment for items 3 through 8 on Appendix K shall be due upon presentation
of the bill to the Buyer. If payment is not received within ten (10) days from
the date the invoice is transmitted or delivered, interest at the Special
Interest Rate will accrue from date of presentation until payment is received.
Date of presentation is the day the bill is wired or, if delivered by courier,
the date delivered.

 

(b) Payment for items 1 and 2 of Appendix K shall be due upon presentation to
Old Dominion. If payment is not received by the fifteenth of the month following
presentation of the bill, interest at the Special Interest Rate will accrue from
date of presentation until payment is received. Date of presentation is the day
the bill is wired or, if delivered by courier, the date delivered.

 

10.04 Methods of Payment. All payments required to be made by any Party under
this Agreement in excess of $10,000 shall be paid on or before the due date in
immediately available funds by delivery (before 11:00 a.m., Richmond time) of
either a Federal Reserve check or evidence of bank wire to the other Party’s
account, at a bank designated by such

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

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Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 48

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Party. If any such payment is to be made by bank wire, the Party entitled to the
payment shall advise the other Party of the appropriate bank and account number
at least one business day before the payment is due. All other payments required
to be made under this Agreement may be made by check deposited in the United
States mail, first-class postage prepaid, and addressed to Treasurer, Virginia
Electric and Power Company, P.O. Box 26666, Richmond, Virginia 23261, if payable
to Dominion Virginia Power; addressed to Senior Vice President – Accounting and
Finance, New Dominion Energy Cooperative, 4201 Dominion Boulevard, Glen Allen,
Virginia 23060; if payable to New Dominion, and addressed to Senior Vice
President – Accounting and Finance, Old Dominion Electric Cooperative, P. O. Box
2310, Glen Allen, Virginia 23058-2310, if payable to Old Dominion.

 

10.05 No Arbitration; Resolution of Disputes. No Party shall have the right to
arbitrate any dispute that might arise with respect to this Agreement. Any
disagreement among the Parties as to their rights or obligations under this
Agreement shall first be addressed by consultation between the Authorized
Dominion Virginia Power Representatives as determined in accordance with Section
19.03 of the Purchase, Construction and Ownership Agreement and the Authorized
Old Dominion Representatives as determined in accordance with Section 19.02 of
the Purchase, Construction and Ownership Agreement. In the event such
representatives are unable to satisfactorily resolve their disagreement, they
shall refer the matter to the Executive Committee created pursuant to Section
18.13 of this Agreement. No dispute as to the payment of an invoice rendered by
either Party shall permit the other Party to delay payment of the disputed
invoice, in full, on its payment date. If the invoiced Party shall have paid any
such disputed invoice, in full, on or before its payment date and if the
Authorized Dominion Virginia Power Representatives and the Authorized Old
Dominion Representatives, or the Executive Committee created pursuant to Section
18.13 of this Agreement, or a court of competent jurisdiction, should later
determine that a disputed invoice was for an amount in

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 49

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excess of the correct amount due, then the invoicing Party shall be obligated to
refund the difference to the invoiced Party within ten (10) days of such
determination with interest, if any, upon such amount as follows:

 

(a) If such difference resulted from a deviation from an estimate not caused by
error or bad faith, interest shall be payable at the Regular Interest Rate;

 

(b) If such difference resulted from an error, interest shall be payable at the
Regular Interest Rate; and

 

(c) If such difference resulted from bad faith, such interest shall be payable
at the Special Interest Rate.

 

10.06 Billing Adjustments. For billing errors or adjustments to estimates of
$5,000 per event or more discovered through (i) resolution of billing
disagreements pursuant to Section 10.05, (ii) audit or (iii) normal billing
procedures, interest will accrue at the Regular Interest Rate from the date of
payment of the original bill through the date of payment of the adjustment. No
interest will accrue to adjustments of less than $5,000 per event or to
adjustments in bills between Dominion Virginia Power and a Cooperative resulting
from PJM billing true-ups. Adjustments, including any interest, must be paid in
accordance with Section 10.03 hereof.

 

10.07 Credit Requirements. Dominion Virginia Power shall not be required to
establish credit security for transactions under Article VI and Article VIII of
this Agreement unless it has a credit rating of less than Baa3 (Moody’s) or BBB-
(Standard & Poor’s) . The Cooperatives shall not be required to establish credit
security for transactions under Article VI and Article VIII of this Agreement
unless both of them have a credit rating of less than Baa3 (Moody’s) or BBB-
(Standard & Poor’s). In the event either credit rating of either Dominion
Virginia Power on the one hand or both of the Cooperatives on the other hand
falls below such levels, such Party or Parties shall immediately inform the
other Party or Parties of that fact. Within five (5) days of the date on which
Dominion Virginia Power’s credit rating falls below the

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 50

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levels set forth above, it will provide the Buyer credit security in an amount,
form and tenor as determined by the Cooperatives in a commercially reasonable
manner. Within five (5) days of the date on which both Cooperatives have a
credit rating below the levels set forth above, they will provide Dominion
Virginia Power credit security in an amount, form and tenor as determined by
Dominion Virginia Power in a commercially reasonable manner. Credit security
means cash or letters of credit, and all proceeds thereof, or other security
reasonably acceptable to the receiving Party, that have been transferred to or
received by a Party hereunder to secure payment or performance of the other
Party’s obligations and subsequently returned to the other Party in accordance
with this Agreement.

 

A Party shall be entitled to hold credit security in the form of custodial
collateral, provided that the following conditions are satisfied: (1) it is not
in default under this Agreement, (2) its credit rating is not below the levels
set forth above and (3) custodial collateral shall be held only in any
jurisdiction within the United States. To the extent a Party is holding cash
provided as credit security by another Party, interest shall accrue and be
payable to the Party that provided the credit security at the rate for that day
opposite the caption “Federal Funds (Effective)” as set forth in the weekly
statistical release designated as H.15(519), or any successor publication,
published by the Board of Governors of the Federal Reserve System.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 51

--------------------------------------------------------------------------------

 

ARTICLE XI

OPERATING COSTS

 

11.01 Operating Costs.

 

(a) During the term of this Agreement, Old Dominion shall pay to Dominion
Virginia Power only its pro rata share of the direct costs of operating and
maintaining the North Anna Facilities, including any administrative and general
costs directly attributable to North Anna (“North Anna A&G Costs”). A billing
format is presented in Appendix L, Section I. hereto. For purposes of this
Section 11.01(a), Old Dominion’s pro rata share of the North Anna Facilities
shall be 11.6%. This pro rata share shall be subject to change from time to time
in accordance with Sections 15.03, 16.01 and 16.02 of the Purchase, Construction
and Ownership Agreement.

 

(b) The Parties have been unable to identify to their mutual satisfaction those
administrative and general costs that are to be allocated to Old Dominion under
the “directly attributable” standard of Section 11.01(a). Therefore, the Parties
agree that for the period from the Effective Date through December 31, 2005, Old
Dominion shall pay to Dominion Virginia Power a fixed monthly fee of $90,000
(“Fixed Monthly A&G Fee”) as full and complete compensation for all
administrative and general services provided by Dominion Virginia Power or any
of its related companies, including its parent company, on behalf of the North
Anna plant and its employees.

 

(c) Without regard to whether these are appropriate categories for inclusion in
a future methodology for determining North Anna A&G Costs, administrative and
general services covered by the Fixed Monthly A&G Fee include, but are not
limited to, the following pertinent services or functions:

 

Accounting Services   Fleet Management Accounts Payable   General Services
Auditing   Human Resources/Employee Relations Business Planning   Legal
Corporate Communications   Materials Management Data Operations   Payroll
Employee Benefits/Pensions   Procurement Executive/Administrative   Security
Facilities   Telecommunications

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 52

--------------------------------------------------------------------------------

 

The Parties agree that for the period from the Effective Date through December
31, 2005, the Fixed Monthly A&G Fee expressly covers all administrative and
general services. These services or functions shall not be directly charged or
allocated in any other fashion to Old Dominion except as follows:

 

(i) North Anna Nuclear Regulatory Commission fees will be billed to Old Dominion
as part of the North Anna operating costs based on Old Dominion’s North Anna
Percentage Ownership Interest.

 

(ii) North Anna insurance premiums will be billed to Old Dominion as part of the
“new investment” section of the invoice based on Old Dominion’s North Anna
Percentage Ownership Interest.

 

(iii) North Anna and nuclear support payroll benefits (billed as payroll add-on)
related to salaries included in the O&M general ledger accounts will be billed
to Old Dominion as part of the O&M sections of the invoice. (The Fixed Monthly
A&G Fee will cover payroll benefits (billed as payroll add-on) related to North
Anna A&G Costs).

 

(iv) The direct costs of nuclear support activities that have historically been
billed to Old Dominion will continue to be billed as nuclear support. Old
Dominion’s share of these costs will be determined based on the ratio of Old
Dominion’s entitlement to nuclear capacity in commercial operation.

 

(d) A billing format is presented in Appendix L, Section I. hereto. The billing
format is subject to review in accordance with Section 11.01(f) and any proposed
changes to the format must be agreed to by both parties prior to any changes
being implemented. Dominion Virginia Power will not transfer costs covered by
the Fixed Monthly A&G Fee or from

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 53

--------------------------------------------------------------------------------

 

current corporate center functions and activities to North Anna or nuclear
support O&M in order to recover costs from Old Dominion that are not directly
attributable to North Anna without mutual agreement of the parties and
appropriate adjustment of the Fixed Monthly A&G Fee.

 

(e) In the event Dominion Virginia Power institutes a cost savings program after
the Effective Date that is intended to benefit both Parties, Dominion Virginia
Power shall give Old Dominion prior notice of the program and demonstrate the
expected cost savings to Old Dominion from the program if it expects Old
Dominion to bear its reasonable proportion of the costs of such program. Old
Dominion shall pay its reasonable, proportionate share of the costs of such
program provided that the cost savings have been adequately demonstrated.

 

(f) The Parties shall negotiate in good faith so that on or before December 31,
2005, they mutually agree to (1) use an appropriate new methodology to calculate
the North Anna A&G Costs, (2) use improved Dominion Virginia Power accounting or
billing systems which allow for the specific identification and assignment of
North Anna A&G Costs or (3) adjust the Fixed Monthly A&G Fee to reflect changes
in the costs or benefits to either Party. In the event the Parties are unable to
agree on any of the foregoing, either Party may institute the dispute resolution
process provided for in this Agreement. The Fixed Monthly A&G Fee will remain in
effect until the dispute is resolved.

 

(g) Dominion Virginia Power is obligated to provide all detailed supporting
information as reasonably requested so that Old Dominion can audit, review or
substantiate all billing charges.

 

11.02 Nuclear Fuel Costs. Old Dominion will pay its pro rata share of the
expenses associated with Nuclear Fuel as provided in the Nuclear Fuel Agreement.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 54

--------------------------------------------------------------------------------

 

ARTICLE XII

ACCOUNTING MATTERS AND ACCESS TO BOOKS AND RECORDS

 

12.01 Responsibility and Method of Accounting. All accounting related to the
transactions contemplated by this Agreement shall utilize the accrual method of
accounting and shall be in accordance with Generally Accepted Accounting
Principles, FERC’s Uniform System of Accounts or as prescribed by other
regulatory agencies having jurisdiction, all as in effect from time to time.

 

12.02 Right to Inspect Records, Etc.

 

(a) During normal business hours and subject to conditions consistent with the
conduct by Dominion Virginia Power of its regular business affairs and
responsibilities, Dominion Virginia Power will provide the Cooperatives, the
Cooperatives’ Authorized Representative(s) or any auditor utilized by the
Cooperatives reasonably acceptable to Dominion Virginia Power, including,
without limitations, Keiter Stephens, or any nationally recognized auditing firm
retained by the Cooperatives, access to Dominion Virginia Power’s books,
records, and other documents, directly related to the performance of Dominion
Virginia Power’s obligations under this Agreement (but excluding internal
memoranda, records and documents relating to such matters and minutes of the
Board of Directors and committees thereof) and, upon request, copies thereof,
which (i) set forth all costs applicable to the construction, operation,
maintenance and retirement of the North Anna Facilities to the extent necessary
to enable the Cooperatives to verify the costs for which the Cooperatives are
billed pursuant to the provisions of this Agreement, (ii) set forth matters
relating to the design, construction, operation, and retirement of the North
Anna Facilities in proceedings before any regulatory body or governmental agency
having jurisdiction; or (iii) are necessary to verify the accuracy of any
statement, charge or computation made pursuant to Article VI or Article VIII of
this Agreement. If any examination pursuant to Article VI or Article VIII
reveals any inaccuracy

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 55

--------------------------------------------------------------------------------

 

in any statement, charge or computation, the necessary corrections will be made
promptly and the Parties shall promptly adjust the payments to each other to
reflect the corrections, with interest calculated pursuant to Section 10.06. Any
request for audit of the charges under Article VI or Article VIII shall be made
no later than 24 months after the event as to which the audit is sought and
thereafter any objection shall be deemed waived. The Cooperatives will bear the
cost of any copying, review or audit of such books and records. Notwithstanding
the foregoing, however, Dominion Virginia Power shall not be required to make
available to the Cooperatives any reports and information relating to personnel
practices, staffing or labor relations.

 

(b) During normal business hours and subject to conditions consistent with the
conduct by the Cooperatives of their regular business affairs and
responsibilities, the Cooperatives will provide Dominion Virginia Power,
Dominion Virginia Power’s Authorized Representative(s), or any auditor utilized
by Dominion Virginia Power reasonably acceptable to the Cooperatives or any
nationally recognized auditing firm retained by Dominion Virginia Power, access
to the Cooperatives’ books, records, and other documents (but excluding internal
memoranda, records and documents relating to such matters and minutes of Board
of Directors and committees thereof), and, upon request, copies thereof, which
(i) relate to this Agreement or (ii) are necessary to verify the accuracy of any
statement, charge or computation made pursuant to Article VI or Article VIII of
this Agreement. If any examination pursuant to Article VI or Article VIII
reveals any inaccuracy in any statement, charge or computation, the necessary
corrections will be made promptly and the Parties shall promptly adjust the
payments to each other to reflect the corrections, with interest calculated
pursuant to Section 10.06. Any request for audit of the charges under Article VI
or Article VIII shall be made no later than twenty-four (24) months after the
event as to which the audit is sought and thereafter any objection shall be
deemed waived. Dominion Virginia Power will bear the cost of any copying, review
or audit of such books and records. Notwithstanding the foregoing, however, the
Cooperatives shall not be required to make available to Dominion Virginia Power
any reports and information relating to personnel practices, staffing or labor
relations.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 56

--------------------------------------------------------------------------------

 

12.03 Confidentiality. During the term of this Agreement, it may become
necessary or desirable, from time to time, for one Party to provide to another
Party information which is either privileged, confidential or proprietary
(whether so designated by the Party providing it or at the time of that Party’s
having obtained it from a third party, so designated by that third party, and in
the latter case, there will be no obligation to disclose such information to the
requesting Party without the consent of such third party; provided, however,
that the Party that obtained such information will use its best efforts to
obtain such consent). The Party desiring to protect any such information (the
labeling Party) may label such information as either privileged, confidential or
proprietary and thereafter the other Parties will not reproduce, copy, use or
disclose (except where required by governmental authorities or in connection
with obtaining requisite governmental licenses, permits or approvals) any such
information in whole or in part for any purpose without the written consent of
the labeling Party, which consent will not be unreasonably withheld. Each Party
may use any such copy, the information contained therein, or both, only in the
exercise of its respective rights and obligations pursuant to this Agreement and
such information will neither be sold nor used in connection with other
generating plants or for the benefits of any third party. Each Party will take
all reasonable steps to protect the other Parties’ proprietary, privileged, or
confidential information by, including, but not limited to, (a) restricting its
use internally on a “need-to-know” basis, (b) obtaining appropriate
confidentiality agreements from those employees, agents, and contractors to whom
such information may be otherwise disclosed under this Agreement, and (c)
ensuring the return of all copies of labeled information to the labeling party
when the need therefore to aid in performance of this Agreement no longer
exists. The respective mortgages and security deed holders of the Parties will
be entitled to inspect (but not to copy) any information labeled by one of the
Parties that has

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 57

--------------------------------------------------------------------------------

 

not been designated as proprietary, privileged or confidential by any other
person or entity. In disclosing confidential or proprietary information to
governmental authorities, the disclosing Party shall cooperate with the labeling
Party in minimizing the amount of such information furnished including the
redaction of information appearing on specific documents as is appropriate under
the circumstances. At the specific request of the labeling Party, the other
Party will endeavor to secure the agreement of such governmental authorities to
maintain specified portions of such information in confidence. Notwithstanding
the foregoing, no Party will be liable to protect the confidentiality of
information as provided in this Section 12.03 if such information is otherwise
available to such Party or is in the public domain.

 

This Section 12.03 will not limit or restrict compliance by any governmental
authority with requests under the Freedom of Information Act for any copies of,
or the information contained in, anything in the possession of any governmental
authority obtained pursuant to this Agreement. Compliance by any governmental
authority with any such request will not constitute a violation of this
Agreement.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 58

--------------------------------------------------------------------------------

 

ARTICLE XIII

LIABILITY, SERVICE INTERRUPTIONS AND FORCE MAJEURE

 

13.01 Liability.

 

(a) In providing the services called for by this Agreement, Dominion Virginia
Power shall use reasonable diligence at all times to provide reasonably adequate
service. Dominion Virginia Power, however, does not guarantee continuous
service. The Parties acknowledge that, at the request of and for the convenience
of Old Dominion, Dominion Virginia Power is to have full responsibility for the
maintenance and operation of the North Anna Facilities. The judgment of Dominion
Virginia Power personnel shall be final in decisions concerning operation and
maintenance of the North Anna Facilities. With respect to claims of third
parties, Old Dominion agrees that Dominion Virginia Power does not by this
Agreement assume any risks or liabilities with respect to the operation and
maintenance of Old Dominion’s share in the North Anna Facilities, and that the
amounts payable to Dominion Virginia Power for its performance under this
Agreement are determined on the basis that Dominion Virginia Power does not
assume such risks or liabilities. Dominion Virginia Power’s obligation to Old
Dominion with respect to the operation and maintenance of the North Anna
Facilities shall be as set forth in this Agreement, the Purchase, Construction
and Ownership Agreement and the Nuclear Fuel Agreement.

 

(b) In addition to all other limitations on liability contained in this
Agreement, no Party hereto shall be liable to the other Parties to this
Agreement for any damage or loss resulting from the interruption, prevention,
suspension or failure of service caused by:

 

(i) Force Majeure, as defined in Section 13.03 below; or

 

(ii) Any emergency action due to an adverse condition or disturbance on a
Party’s system, or on any other system which requires automatic or manual
interruption of the supply of electricity to some customers or areas in order to

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

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Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 59

--------------------------------------------------------------------------------

 

limit the extent of, or damage caused by, the adverse condition or disturbance,
or to prevent damage to generating or transmission facilities, or to expedite
restoration of service, or to effect a reduction in service to compensate for an
emergency condition on an interconnected system; or

 

(iii) The making of necessary inspections of, adjustments to, changes in, or
repairs to a Party’s lines, substations or other facilities and in cases where
the continuation of services would endanger persons or property.

 

(c) With respect to claims relating to the quality, continuity, reliability or
price of electric service,

 

(i) Dominion Virginia Power shall not be liable to the Members or the
member-consumers of the Members or any other persons or entities claiming
through or against the Cooperatives or the Members for any expenses, damages,
injuries or loss arising out of or resulting from the maintenance or operation
of facilities, and the Cooperatives shall indemnify Dominion Virginia Power
against such liability; and

 

(ii) the Cooperatives shall not be liable to the retail or wholesale customers
of Dominion Virginia Power or any other persons or entities claiming through or
against Dominion Virginia Power for any expenses, damages, injuries or losses
arising out of or resulting from the operation or maintenance of the North Anna
Facilities, and Dominion Virginia Power shall indemnify the Cooperatives against
such liabilities.

 

With respect to all other claims, the Parties will share all expenses and
liabilities in the same portions that they share ownership of the North Anna
Facilities.

 

13.02 Responsibility on Either Side of Generator Interconnection Points and
Delivery Points. No Party shall be responsible for the transmission, control,
use or application

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

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Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 60

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of electric power provided under this Agreement on another Party’s side of any
Generator Interconnection Point or Delivery Point. Electricity is supplied by
Dominion Virginia Power to Buyer upon the express condition that after it passes
the Delivery Point it becomes the property of Buyer; and no Party, unless and
except to the extent that such results from the negligence or misuse of the
property on the part of its employees or agents, subject to limitations of
Section 13.01, will be liable for loss or damage to any persons or property
whatsoever, resulting directly or indirectly from the use, misuse, or presence
of the said electricity, on another Party’s side of the Delivery Point or for
any loss or damage resulting from the presence, character, or condition of the
wires or equipment of the other Party, nor shall it be responsible for the
inspection or repair of such wires or equipment.

 

13.03 Force Majeure. Dominion Virginia Power and the Cooperatives shall not be
liable or responsible for any delay in the performance of, or the ability to
perform, any duties or obligations required by this Agreement when such delay in
performance or inability to perform results from a Force Majeure occurrence,
except that the obligation to pay money in a timely manner shall not be subject
to Force Majeure provisions. Force Majeure as used herein shall mean without
limitation, the following: Act of God; strikes; lockouts or other industrial
disturbances; acts of public enemies; orders, or absence of necessary orders and
permits of any kind which have been properly applied for, from the Government of
the United States or from any State or Territory, or any of their departments,
agencies or officials, or from any civil or military authority; extraordinary
delay in transportation; inability to transport; store or reprocess spent
nuclear fuel; unforeseen soil conditions; equipment, material, supplies, labor
or machinery shortages; epidemics; landslides; lightning; earthquakes; fire;
hurricanes; tornadoes; storms; floods; washouts; drought; war; civil
disturbances; explosions; breakage or accident to machinery, generation,
transmission or distribution facilities, pipes or channels; partial or entire
failure of utilities; breach of contract by any supplier, contractor,
subcontractor, laborer or

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 61

--------------------------------------------------------------------------------

 

material man; sabotage; injunction; blight; famine; blockade; quarantine; or any
other similar cause or event not reasonably within the control of Dominion
Virginia Power or the Cooperatives.

 

13.04 Remedy. A Party suffering an occurrence of Force Majeure shall remedy with
all reasonable dispatch the cause or causes preventing such Party from carrying
out its duties and obligations as required in this Agreement; provided, that the
settlement of strikes, lockouts and other industrial disturbances affecting
Dominion Virginia Power or Cooperative facilities shall be entirely within the
discretion of that Party, and it shall not be required to make settlement of
strikes, lockouts, or other industrial disturbances by acceding to the demands
of the opposing party or parties when such course is unfavorable in the judgment
of such employer.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 62

--------------------------------------------------------------------------------

 

ARTICLE XIV

REPRESENTATIONS AND WARRANTIES

 

14.01 Representations and Warranties of Dominion Virginia Power. Dominion
Virginia Power represents and warrants as follows:

 

(a) Dominion Virginia Power is a corporation duly incorporated and validly
existing, in good standing, under the laws of Virginia, is duly qualified and
authorized to do business and is in good standing in each jurisdiction where the
character of its properties or the nature of its actions makes such
qualification necessary, and has the corporate power to carry on its business as
now being conducted and possesses all Federal and State authority and local
franchises necessary for the maintenance and operation of its properties and
business with such minor exceptions as will not materially interfere with the
maintenance and operation of the North Anna Facilities.

 

(b) Consummation of the transactions hereby contemplated and performance of this
Agreement by Dominion Virginia Power will not result in violation of any laws,
ordinances or governmental rules to which it is subject. Dominion Virginia Power
either has obtained, or at the Effective Date shall have obtained, all necessary
governmental approvals and consents in connection with the consummation by
Dominion Virginia Power of the transactions hereby contemplated and the
performance by it of this Agreement.

 

(c) The consummation of the transactions hereby contemplated and the performance
by Dominion Virginia Power of this Agreement will not result in the breach of,
or constitute a default under, the Articles of Incorporation or By-Laws of
Dominion Virginia Power or any indenture (including the indenture of mortgage),
mortgage, deed of trust, bank loan or credit agreement, or other agreement or
instrument to which Dominion Virginia Power is a party or by which Dominion
Virginia Power or its properties may be bound or affected, or result in the
creation of any lien, charge, security interest or encumbrance upon any property
of Dominion Virginia Power, and Dominion Virginia Power is not in default under
any term of any such agreement or instrument.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 63

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(d) Dominion Virginia Power is not a “registered holding company,” but is a
“subsidiary company” of a registered holding company within the meaning of the
Public Utility Holding Company Act of 1935; and Dominion Virginia Power is not,
and is not directly or indirectly controlled by, or acting on behalf of any
person which is, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

(e) On the date hereof there exists, as to Dominion Virginia Power, no Event of
Default or event or condition which, with the giving of notice or the lapse of
time or both, would constitute as Event of Default.

 

14.02 Representations and Warranties of the Cooperatives.

 

Each of Old Dominion and New Dominion represents and warrants as follows:

 

(a) Each Cooperative is a utility aggregation cooperative duly incorporated and
validly existing, in good standing, under the laws of Virginia, is duly
qualified and authorized to do business and is in good standing in each
jurisdiction where the character of its properties or the nature of its actions
make such qualification necessary, and has the corporate power to carry on its
business as now being conducted and possesses substantially all Federal and
State authority and local franchises necessary for the maintenance and operation
of its properties and business with such minor exceptions as will not materially
interfere with the maintenance and operation of the North Anna Facilities.

 

(b) Consummation of the transactions hereby contemplated and performance of this
Agreement by the Cooperatives will not result in violation of any laws,
ordinances, or governmental rules to which it is subject. Each Cooperative
either has obtained, or at the Effective Date (or in the case of New Dominion,
at the date it gives notice that it has undertaken the power purchase rights and
obligations under this Agreement) shall have obtained, all

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

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Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 64

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necessary governmental approvals and consents, in connection with the
consummation by the Cooperatives of the transactions hereby contemplated and the
performance by them of this Agreement.

 

(c) The consummation of the transactions hereby contemplated and the performance
by the Cooperatives of this Agreement, the Purchase, Construction and Ownership
Agreement and the Nuclear Fuel Agreement will not result in the breach of, or
constitute a default under, the Articles of Incorporation or By-Laws of either
Cooperative or any indenture, mortgage, deed of trust, bank loan or credit
agreement, or other agreement or instrument to which either Cooperative is a
party or by which either Cooperative or its properties may be bound or affected,
or result in the creation of any lien, charge, security interest or encumbrance
upon any term of any such agreement or instrument.

 

(d) On the date hereof there exists, as to each Cooperative, no Event of Default
or event or condition which, with the giving of notice or the lapse of time or
both, would constitute an Event of Default.

 

(e) Each of the Members has entered into and will be bound by the Wholesale
Power Contracts on the Effective Date.

 

(f) The Cooperatives solely are authorized to act for each and all of the
Members in all communications, transactions and relationship with Dominion
Virginia Power pursuant to this Agreement.

 

14.03 Conditions Precedent. On or prior to the Effective Date, each of the
following conditions shall have been satisfied: (a) this Agreement shall have
been accepted for filing by FERC, if necessary, (b) all representations and
warranties in Sections 14.01 and 14.02 hereof shall be true with the same effect
as though such representations and warranties had been made on and as of such
date, and (c) each Party shall have performed all agreements on its part
required to be performed on or prior to such date.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 65

--------------------------------------------------------------------------------

 

ARTICLE XV

TERM OF AGREEMENT

 

15.01 Term. This Agreement shall become effective on the Effective Date. Unless
earlier terminated pursuant to the provisions of Article XVII, this Agreement
shall terminate upon the earlier of (1) the date on which the last of the North
Anna Facilities is retired, (2) the date upon which Old Dominion’s ownership
interest in the North Anna Facilities and Nuclear Fuel is reduced to zero, or
(3) as otherwise agreed to by the Parties.

 

15.02 Early Termination of Specified Provisions. (a) Notwithstanding the
foregoing Section 15.01, Sections 6.02 and 6.03 and Article VIII shall be
effective from the Effective Date through October 31, 2010; provided that Buyer
may terminate such provisions effective after providing at least twelve (12)
months notice to Dominion Virginia Power at any time.

 

(b) Notwithstanding any other provision of this Agreement, Sections 6.02 and
6.03 and Article VIII of this Agreement shall terminate immediately upon written
notice by Dominion Virginia Power if (i) either Old Dominion does not support or
either Cooperative opposes Dominion Virginia Power’s applications to the
Virginia State Corporation Commission and FERC for approval of the transfer of
operational control of Dominion Virginia Power’s transmission facilities to PJM
South and its related application for permission to join PJM; (ii) either
Cooperative opposes Dominion Virginia Power’s application to the North Carolina
Utilities Commission for approval of such transfer; (iii) Old Dominion does not
support or either Cooperative opposes Dominion Virginia Power’s legislative
initiative, if any, in the Virginia General Assembly designed to effect such
transfer; or (iv) either Cooperative supports any legislative initiative in the
Virginia General Assembly that would require Dominion Virginia Power’s
generation to be placed under the regulation of the Virginia State Corporation
Commission.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 66

--------------------------------------------------------------------------------

 

(c) Notwithstanding any other provision in this Agreement, Sections 6.02, 6.03
and Article VIII of this Agreement shall terminate as of the effective date of
any legislation by the Virginia General Assembly that was not actively opposed
by Old Dominion or that was supported by either of the Cooperatives that results
in Dominion Virginia Power’s generation being placed under the regulation of the
Virginia State Corporation Commission.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 67

--------------------------------------------------------------------------------

 

ARTICLE XVI

FILING WITH FERC

 

This Agreement shall be filed with FERC if necessary, with the request that it
become effective on the Effective Date. If this Agreement is filed, the
Cooperatives will join in Dominion Virginia Power’s request that this Agreement
and the initial rates contained herein be accepted for filing with a suspension
of no longer than one day and will support the other provisions of this
Agreement. If FERC does not accept the provisions of this Agreement for filing
or allows the contract to become effective only with changes or conditions which
materially alter the Agreement (thereby defeating the intent of the Parties),
then, notwithstanding any other provisions of this Agreement the Parties will
make a good faith effort to re-negotiate this Agreement to make mutually
acceptable changes to remedy any issues cited by FERC as reasons for its
non-acceptance.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 68

--------------------------------------------------------------------------------

 

ARTICLE XVII

DEFAULT

 

17.01 Event of Default. Each of the following shall be “Events of Default” under
this Agreement:

 

(a) The failure of any Party to make any payment then due to another Party as
required by this Agreement within thirty (30) days of the date when such payment
became due and payable; provided, however, that no Party shall be in default for
nonpayment of any amount due and payable hereunder to another Party that can be
offset within 30 days after the date on which such amount became due and
payable.

 

(b) Willful failure by any Party to perform any other obligation to another
Party, other than obligations for the payment of money, provided that the
defaulting Party shall have been given not less than sixty (60) days’ notice of
such willful failure by the non-defaulting Party and such defaulting Party shall
have failed to correct such default or shall have failed to use its reasonable
best efforts to correct such default.

 

(c) Any of the following acts by a Party:

 

(i) the insolvency or bankruptcy of a Party or its inability or admission in
writing of its inability to pay its debts as they mature, or the making of a
general assignment for benefit of, or entry into any composition or arrangement
with, its creditors other than Old Dominion’s, New Dominion’s or Dominion
Virginia Power’s mortgagee, as the case may be; or

 

(ii) the application for, or consent (by admission of material allegations of a
petition or otherwise) to, the appointment of a receiver, trustee or liquidator
for any Party or for all or substantially all of its assets, or its
authorization of such application or consent, or the commencement of any
proceedings seeking such appointment against it without such authorization,
consent or application, which proceedings continue undismissed or unstayed for a
period of sixty (60) days; or

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 69

--------------------------------------------------------------------------------

 

(iii) the authorization or filing by a Party of a voluntary petition in
bankruptcy or application for or consent (by admission of material allegations
of a petition or otherwise) to the application of any bankruptcy,
reorganization, readjustment of debt, insolvency, dissolution, liquidation or
other similar law of any jurisdiction or the institution of such proceedings
against a Party without such authorization, application or consent, which
proceedings remain undismissed or unstayed for 60 days or which result in
adjudication of bankruptcy or insolvency within such time.

 

(iv) Failure to comply with the credit security or notice requirements of
Section 10.07.

 

17.02 Dominion Virginia Power’s Rights on Default of a Cooperative. Whenever any
Event of Default by a Cooperative shall have occurred and Dominion Virginia
Power intends to require that the default be remedied, Dominion Virginia Power
shall give the Cooperatives written notice to remedy the default. If the default
shall not have been fully cured within thirty (30) days from the date of the
notice, Dominion Virginia Power shall have the rights set forth herein, in
addition to all other rights it may have at law or in equity.

 

(a) Where the default is a failure to pay money when due:

 

(i) Subject to the limitations contained in the Federal Power Act or regulations
duly promulgated thereunder, Dominion Virginia Power may, 30 days after delivery
to the Cooperatives and the Members of written notice of termination, terminate
all service under this Agreement. Notwithstanding such termination, Dominion
Virginia Power shall be authorized to continue to operate, maintain and fuel the
North Anna Facilities and to schedule and dispatch the

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 70

--------------------------------------------------------------------------------

 

capacity and energy from such North Anna Facilities. In the event this provision
is invoked Dominion Virginia Power shall maintain an accurate record of all the
benefits, including but not limited to the capacity and energy from Old
Dominion’s ownership interest in the North Anna Facilities, and costs of such
continued operation, maintenance and fueling to provide for a reasonable
settlement following removal of the default.

 

(ii) Failure of a Cooperative to make any payment on the date required under
this Agreement shall obligate the Cooperatives to pay to Dominion Virginia Power
(a) the unpaid amount, (b) interest on the unpaid amount at the Special Interest
Rate from the date such payment was due until the amount is paid and (c) the
reasonable expenses incurred by Dominion Virginia Power in collecting the unpaid
amount.

 

(iii) Where a default under Article XV of the Purchase, Construction and
Ownership Agreement shall have otherwise permitted Dominion Virginia Power to
purchase all or a portion of Old Dominion’s ownership interest in the North Anna
Facilities (as those terms are defined in the Purchase, Construction and
Ownership Agreement) any amount in default hereunder shall be offset against the
purchase price to be paid to Old Dominion.

 

(b) Where the default is the willful failure by a Cooperative to perform an
obligation hereunder other than the obligation to pay money when due, Dominion
Virginia Power may take any lawful action that will remedy the default or
mitigate its effects, and the Cooperatives shall, upon demand by Dominion
Virginia Power, pay reasonable losses or damages incurred by Dominion Virginia
Power as a direct and proximate result of the default and all expenses incurred
by Dominion Virginia Power in remedying the default or mitigating its effects,
together with interest at the Special Interest Rate on that amount until the
total amount is paid. A failure by a Cooperative to make payment hereunder shall
constitute a default under Section 17.01(a) and give rise to the remedies
available under Section 17.02(a).

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 71

--------------------------------------------------------------------------------

 

(c) Where the default is any of the acts set forth in Section 17.01(c), Dominion
Virginia Power shall have the right to take any lawful action, including
termination of this Agreement, that Dominion Virginia Power determines to be
necessary to minimize its losses or enhance its prospects of recovery of amounts
due and to become due to it.

 

17.03 The Cooperatives’ Rights on Default of Dominion Virginia Power. Whenever
any Event of Default by Dominion Virginia Power shall have occurred and a
Cooperative intends to require that the default be remedied, such Cooperative
shall give Dominion Virginia Power written notice to remedy the default. If the
default shall not have been fully cured within thirty (30) days from the date of
the notice, the Cooperatives shall have the rights set forth herein, in addition
to all other rights it may have at law or in equity.

 

(a) Where the default is a failure to pay money when due, the Cooperatives shall
have the right to withhold from Dominion Virginia Power payment of their
obligations hereunder to the extent of the amount in default plus interest at
the Special Interest Rate thereon until the amount is paid.

 

(b) Where the default is the willful failure by Dominion Virginia Power to
perform an obligation hereunder other than the obligation to pay money when due,
the Cooperatives may take any lawful action that will remedy the default or
mitigate its effects, and Dominion Virginia Power shall, upon demand by a
Cooperative, pay reasonable losses or damages incurred by such Cooperative as a
direct and proximate result of the default and all expenses incurred by such
Cooperative in remedying the default or mitigating its effects, together with
interest at the Special Interest Rate on that amount until the total amount is
paid. A failure by Dominion Virginia Power to make payment hereunder shall
constitute a default under Section 17.01(a) and give rise to the remedies
available under Section 17.03(a).

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 72

--------------------------------------------------------------------------------

 

(c) Where the default is any of the acts set forth in Section 17.01(c), the
Cooperatives shall have the right to take any lawful action, including
termination of this Agreement, that the Cooperatives determine to be necessary
to minimize their losses or enhance their prospects of recovery of amounts due
and to become due to either or both of them.

 

17.04 Disputes Concerning Default. In the event that any Party shall dispute an
asserted default by it, such Party shall pay the disputed payment or perform the
disputed obligations, but may do so under protest. The protest shall be in
writing, shall precede or accompany the disputed payment or performance of the
disputed obligations, shall specify the reasons upon which the protest is based
and shall be delivered to the other Parties hereunder. In the event it is
determined that the protesting Party is entitled to a refund of all or any
portion of a disputed payment or payments, or is entitled to reimbursement of
the cost of performing a disputed obligation theretofore made or performed, then
the protesting Party shall be reimbursed such amount with interest at the
Regular Interest Rate for the period involved.

 

17.05 Additional Obligations. With respect to any Party as to which an Event of
Default has occurred, such Party shall use its best efforts to take any and all
such further actions and shall execute and file, where appropriate, any and all
such further legal documents and papers as may be reasonable under the
circumstances in order to facilitate the carrying out of this Agreement or
otherwise effectuating its purpose, including but not limited to action to seek
any required governmental or regulatory approval and to obtain any other
required consent, release, amendment or other similar document.

 

17.06 Injunctive Relief. The Parties hereto agree and acknowledge that the
failure of a Party to perform any of its obligations under this Agreement,
including the execution of legal documents which may be reasonably requested as
set forth in this Article XVII, would cause irreparable injury to the other
Parties and that the remedy at law for any violations or threatened

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 73

--------------------------------------------------------------------------------

 

violation thereof would be inadequate, and agree that the other Parties, as
appropriate, shall be entitled to a temporary or permanent injunction or other
equitable relief specifically to enforce such obligation without the necessity
of proving the inadequacy of its legal remedies.

 

17.07 No Remedy Exclusive. No remedy conferred upon or reserved to the Parties
hereto in this Article XVII is intended to be exclusive of any other remedy or
remedies available hereunder or now or hereafter existing at law, in equity, or
by statute or otherwise, but each and every such remedy shall be cumulative and
shall be in addition to each other such remedy. The pursuit by any Party of any
specific remedy shall not be deemed to be an election of that remedy to the
exclusion of any other or others, whether provided hereunder or by law, equity
or statute.

 

17.08 Agreement to Pay All Costs to Cure Default.

 

(a) A late payment charge during periods of default shall accrue on any amount
in default at an annual rate equal to that of the Special Interest Rate.

 

(b) If an Event of Default should occur and a Party not in default should employ
attorneys or incur other expenses for the collection of any payment or the
enforcement of performance or observation of any condition or obligation on the
part of the defaulting Party or for the exercise of any other remedy hereunder,
the defaulting Party agrees that it will on demand therefor reimburse the other
Parties as appropriate for their reasonable expenses of such attorneys and such
other expenses incurred. No default shall be deemed cured until all costs
payable under this Article XVII, including any attorneys’ fees incurred by the
Parties not in default, and payments pursuant to this Agreement shall have been
paid or reimbursed by the defaulting Party.

 

17.09 General Covenant by the Parties. Each Party hereto covenants and agrees
that if any event shall occur or condition exist which constitutes, or which
after notice, lapse of time or both, would constitute an Event of Default on its
part pursuant to this Article XVII, it shall immediately notify the other
Parties thereof, specifying the nature thereof and any action taken or proposed
to be taken with respect thereto.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 74

--------------------------------------------------------------------------------

 

ARTICLE XVIII

MISCELLANEOUS

 

18.01 No Delay. Except as specially set forth in Sections 17.02(a) and 17.03(a),
herein, no disagreement or dispute of any kind among the Parties to this
Agreement or between a Party and any other entity, concerning any matter,
including, without limitation, the amount of any payment due from said Party or
the correctness of any billing made to the Party, shall permit any Party to
delay or withhold any payment or the performance of any other obligation
pursuant to this Agreement. Each Party shall promptly and diligently undertake
to resolve such disagreement or dispute without undue delay and in good faith.

 

18.02 Further Documentation. From time to time after the execution of this
Agreement, the Parties hereto shall, within their legal authority, execute other
documents as may be necessary, helpful or appropriate to carry out the terms of
this Agreement.

 

18.03 Notice. Any notice, request, consent or other communication permitted or
required by this Agreement (other than payments as provided in Section 10.04)
shall be in writing and shall be deemed given when delivered by hand or (unless
otherwise required by the terms of this Agreement) when deposited in the United
States Mail, first class, postage prepaid, and if to Dominion Virginia Power,
addressed to:

 

Director – Power Contracts

Virginia Electric and Power Company

5000 Dominion Boulevard

Glen Allen, Virginia 23060

 

if to New Dominion, addressed to:

 

President and Chief Executive Officer

New Dominion Energy Cooperative

4201 Dominion Boulevard

Glen Allen, Virginia 23060

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 75

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and if to Old Dominion, addressed to:

 

President and Chief Executive Officer

Old Dominion Electric Cooperative

P. O. Box 2310

Glen Allen, Virginia 23058-2310

 

unless a different officer or address shall have been designated by the
respective Party by notice in writing sent to the other Party hereto.

 

18.04 Headings Not to Affect Meaning. The descriptive headings of the various
articles and sections of this Agreement have been inserted for convenience of
reference only and shall in no way modify or restrict any of the terms and
provisions hereof.

 

18.05 No Association, Trust, Joint Venture or Partnership; Tax Matters.

 

Notwithstanding any provision of this Agreement, the Parties do not intend to
create hereby any association, trust, joint venture or partnership under the
laws of Virginia, although the Parties acknowledge that the ownership and
operation of the North Anna Facilities may constitute a partnership for tax
purposes. If it should appear that one or more changes to this Agreement would
be required in order to avoid the creation or terminate the existence of any
such entity, the Parties agree to negotiate promptly and in good faith with
respect to such changes. Dominion Virginia Power and the Cooperatives hereby
agree that they will all elect to exclude the arrangement created by this
Agreement from the application of Subchapter K of the Internal Revenue Code of
1954, as amended, and execute all documents required by any Party to effect that
result.

 

18.06 Assignment. Except as provided herein, no Party shall assign this
Agreement or its rights hereunder without the prior written consent of the other
Parties, which consent may not be unreasonably withheld. Any assignment of this
Agreement in violation of this Article XVIII shall be, at the option of the
non-assigning Parties, void.

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 76

--------------------------------------------------------------------------------

 

(a) A Party (the “Assigning Party”) may, without the consent of the other
Parties:

 

(i) transfer, sell, pledge, encumber or assign this Agreement or the accounts,
revenues or proceeds hereof in connection with any financing, refinancing or
similar financial arrangement, including or pursuant to the exercise of remedies
under such financing or refinancing; provided that the Assigning Party shall not
thereby be relieved or in any way discharged from the performance of its duties
and obligations under this Agreement;

 

(ii) transfer or assign all or part of this Agreement to an affiliate of the
Assigning Party which affiliate’s creditworthiness is equal to or higher than
that of the Assigning Party based either on Standard and Poor’s or Moody’s
ratings or, if the affiliate does not have a such a rating, on credit assurances
reasonably acceptable to the non-assigning Party; or

 

(iii) transfer or assign its rights and obligations under this Agreement to any
person or entity (the Assignee) succeeding to all or substantially all of the
Assigning Party’s assets (or, in the case of Dominion Virginia Power, a person
or entity succeeding to all or substantially all of its generating assets),
provided that the Assignee’s creditworthiness is equal to or higher than that of
the Assigning Party and it is financially and operationally capable of
performing its obligations under this Agreement.

 

(b) An assignment or transfer pursuant to Sections 18.06(a)(i) or (ii) may be
made only if:

 

(i) any required regulatory approvals are obtained in connection with such
transfer or assignment;

 

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Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 77

--------------------------------------------------------------------------------

 

(ii) the Assignee agrees in writing to be bound by the terms and conditions of
this Agreement;

 

(iii) the Assigning Party delivers such tax and enforceability assurance as the
non-assigning Parties may reasonably request; and

 

(iv) the non-assigning Parties are not obligated to perform their obligations
hereunder in favor of the Assignee to the extent the Assignee shall not perform
the obligations of the Assigning Party.

 

(c) No transfer or assignment of rights or obligations under this Agreement
shall relieve the Assigning Party from full liability and financial
responsibility for the performance thereof after any such transfer or assignment
in the event of non-performance by the Assignee unless and until the Assignee
agrees in writing to assume the obligations and duties of the Assigning Party
under this Agreement and the non-assigning Parties have consented in writing to
such assumption, said consent not to be unreasonably withheld.

 

(d) If any Party terminates its existence as a corporate entity by merger,
acquisition, sale, consolidation or otherwise, or if all or substantially all of
such Party’s assets are transferred to another person or business entity,
without complying with this Section 18.06, the other Parties shall have the
right, enforceable in a court of competent jurisdiction, to enjoin the first
Party’s successor from using the property in any manner that interferes with,
impedes, or restricts such other Parties’ ability to carry out their ongoing
business operations, rights and obligations.

 

(e) This Article and all of the provisions hereof are binding upon, and inure to
the benefit of, the Parties and their respective successors and permitted
assigns.

 

18.07 Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 78

--------------------------------------------------------------------------------

 

18.08 Severability. In the event any of the terms, covenants or conditions of
this Agreement or amendments thereof or the application of any such term,
covenant or condition or amendment thereof shall be held invalid as to a Party
or circumstance by any court or governmental agency having jurisdiction, all of
the other terms, covenants and conditions of this Agreement and amendments
thereof shall not be affected thereby and shall remain in full force and effect.

 

18.09 Applicable Law. This Agreement is made under and shall be governed by the
laws of the Commonwealth of Virginia.

 

18.10 No Waiver. The failure of any Party to enforce at any time any of the
provisions of this Agreement or to require at any time performance by the other
Parties of any of the provisions hereof, shall in no way be construed to be a
waiver of such provisions, nor in any way to affect the validity of this
Agreement or any part hereof or the right of such Parties thereafter to enforce
each and every such provision.

 

18.11 Computation of Time. In computing any period of time prescribed or allowed
under this Agreement, the day on which the act or event occurs after which the
designated period of time begins to run shall not be included. The last day of
the period so computed shall be included if it is a business day; if it is not a
business day, the period shall run until the end of the next day which is a
business day.

 

18.12 Survivorship of Obligations. The termination of this Agreement shall not
discharge any Party hereto from any obligations it owes to the other Parties
under this Agreement by reason of any transaction, loss, cost, damage, expense
or liability which shall occur or arise (or the circumstances, events or basis
of which shall occur or arise) prior to such termination. It is the intent of
the Parties hereby that any such obligation owed (whether the same shall be
known or unknown at the termination of this Agreement or whether the
circumstances, events, or basis of the same shall be known or unknown at the
termination of this Agreement) shall survive the termination of this Agreement.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 79

--------------------------------------------------------------------------------

 

18.13 Executive Committee. An Executive Committee, consisting of the Chief
Executive Officer and the Chief Operating Officer of Dominion Virginia Power, or
their designees, and the President of Old Dominion, or his designees, shall meet
from time to time for the purpose of resolving disputes arising from the
activities of the North Anna Operating Committee and the Planning and
Administration Committee established pursuant to Sections 2.01 and 3.01,
respectively, of this Agreement.

 

18.14 Entire Agreement. This Agreement, the Purchase, Construction and Ownership
Agreement, and the Nuclear Fuel Agreement together with appendices and exhibits
incorporated by reference, shall constitute the entire understanding among the
Parties hereto, pertaining to the subject matter contained herein as of the date
on which this Agreement is executed. No Party hereto has relied, nor will rely,
upon any previous oral or written representation or previous oral or written
information made or given to such Party by the other Parties hereto or any
representative of or anyone on the behalf of the other Parties hereto.

 

18.15 Non-Exclusive Agreement. Subject to the limitations in this Agreement,
Dominion Virginia Power and the Cooperatives shall have the right at all times
to execute interconnection agreements with any other person on the same or
different terms and conditions as those stated herein, but no such other
agreement shall diminish any rights of the other Parties hereunder.

 

18.16 Relationship of the Parties. The duties, obligations, and liabilities of
Dominion Virginia Power on the one hand and both Cooperatives on the other hand
are intended to be several and not joint or collective. The Cooperatives shall
be jointly and collectively responsible for the duties, obligations and
liability of each of the Cooperatives to Dominion Virginia Power as provided
herein. Dominion Virginia Power shall not have the right or power to bind the

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 80

--------------------------------------------------------------------------------

 

Cooperatives, except as expressly provided in this Agreement. The Cooperatives
shall not have the right or power to bind Dominion Virginia Power, except as
expressly provided in this Agreement.

 

18.17 Singular and Plural. Throughout this Agreement, whenever any word in the
singular number is used, it should include the plural unless the context
otherwise requires; and whenever the plural number is used, it shall include the
singular, unless the context otherwise requires.

 

18.18 Good Faith. The Parties hereto expressly agree that every obligation
undertaken in this Agreement will be performed in good faith.

 

18.19 Merger of Documents. All understandings and agreements, written or oral,
among the Parties prior to the Effective Date, with respect to the matters
herein contained, including the Interconnection and Operating Agreement, have
been superseded in all respects by this Agreement, and all such understandings
and agreements prior to the Effective Date are null and void and of no effect
whatsoever.

 

18.20 Limitations of Parties’ Rights to Seek Regulatory Review. Except as
otherwise provided in this Agreement, absent agreement of the Parties to a
proposed change, the standard of review for changes to this Agreement proposed
by a Party, a non-Party or the Federal Energy Regulatory Commission acting sua
sponte shall be the “public interest” standard of review set forth in United Gas
Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal Power
Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956) (the “Mobile-Sierra”
doctrine).

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 81

--------------------------------------------------------------------------------

 

ARTICLE XIX

AMENDMENT

 

This Agreement may not be orally amended, modified, or terminated, nor may any
obligation hereunder be waived orally. Any amendment shall be in writing, and
shall be signed by the Chief Executive Officer or the President of Dominion
Virginia Power or the person either of them may designate in writing, by the
President and CEO of New Dominion, or the person he may designate in writing and
by the President and CEO of Old Dominion, or the person he may designate in
writing, and must be approved by the Board of Directors of Old Dominion, New
Dominion and Dominion Virginia Power subject to any required regulatory
approval.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 82

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the Parties have caused this amended and restated Agreement
to be executed by their duly authorized officers as of the day and year first
above written.

 

VIRGINIA ELECTRIC AND POWER COMPANY

By

 

 

--------------------------------------------------------------------------------

   

E. Paul Hilton

   

Senior Vice President

OLD DOMINION ELECTRIC COOPERATIVE

By

 

 

--------------------------------------------------------------------------------

   

Jackson E. Reasor, Jr.

   

President and CEO

NEW DOMINION ENERGY COOPERATIVE

By

 

 

--------------------------------------------------------------------------------

   

Jackson E. Reasor, Jr.

   

President and CEO

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective:                         

Managing Director of Energy Supply

    

Issued on:

         

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 83

--------------------------------------------------------------------------------

 

APPENDIX A

COMMON FACILITIES

 

All property of Dominion Virginia Power in the following accounts on Dominion
Virginia Power’s books of account that is within the definition of Common
Facilities as well as the Construction Work in Progress and the Completed
Construction Not Classified related thereto:

 

FERC ACCOUNT

--------------------------------------------------------------------------------

  

DESCRIPTION

--------------------------------------------------------------------------------

320

  

Land and Land Rights

321

  

Structures & Improvements

    

Clearing

    

Water System

    

Storm Sewers

    

Sanitary Sewers

    

Fire Protection

    

Fuel Oil Storage

    

RR Track

    

Yard

    

Yard Lighting

    

Boat Dock

    

Rifle Range

    

Gun Towers

    

Medical Classroom

    

Condensate Fill Pump Station

    

Auxiliary Building

    

Turbine Building

    

Turbine Outage Building

    

Office Building

    

Screenwell Structure

    

Vacuum Priming Pump House

    

Fuel Building

    

Fuel Oil Pump House

    

Yard Crane

    

Water Treatment Building

    

Service Building

    

Weather Towers

    

Meteorological Towers

    

Security Building

    

Security Control Center

    

Dam

    

Reservoirs

    

Spillways

    

Dikes

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 84

--------------------------------------------------------------------------------

 

    

Service Water Pump House

    

Decontamination Building

    

Waste Disposal Building

    

Roadways

    

Walkways

    

Parking Lots

322

  

Reactor Plant Equipment

    

Boron Recovery System

    

Moving Platform Spent

    

Fuel Pit

    

Fuel Building Cranes

    

Decontamination Cranes

    

Fuel Receiving Equipment

    

Spent Fuel Racks

    

Reactor Cavity Purification

    

Radioactive Waste Treatment

    

and Disposal System

    

Liquid Waste Solidification System

    

Waste Disposal Evaporator

    

Radioactive Gaseous Waste

    

Radioactive Solid Waste

    

Decontamination System

    

Raw Water Supply System

    

Condensate Storage Tank

    

Auxiliary Boiler System

323

  

Turbo-Generator Equipment

    

Service Water Pump House Equipment

    

Bearing Cooling Water Tower

    

Turbine Room Crane

324

  

Accessory Electric Equipment

    

Screenwell Area Transformers and Equipment

    

Reserve Station Transformer

    

Bearing Cooling Tower Switch Boards

325

  

Miscellaneous Power Plant Equipment

    

Compressed Air systems

    

Miscellaneous Shop Equipment

    

Machine Shop Equipment

    

Laboratory Testing Equipment

    

Office Furniture and Equipment

    

Other General Station Equipment

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 85

--------------------------------------------------------------------------------

 

    

Weather Station Equipment

    

Marine Equipment

    

Kitchen Equipment

    

Fire Protection Equipment

    

Plant Communications

    

Telephone System

    

Security Equipment

    

Radiation Monitoring Equipment

    

Gasoline Storage Equipment

352

  

Transmission Structures and Improvements

353

  

Transmission Station Equipment

390

  

Structures and Improvements

    

Visitors Information Center

391

  

Office Furniture and Equipment

392

  

Transportation Equipment

 

COMPLETED CONSTRUCTION NOT CLASSIFIED

   

PROJECT NO.

 

DESCRIPTION

CONSTRUCTION WORK IN PROGRESS

   

PROJECT NO.

 

DESCRIPTION

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 86

--------------------------------------------------------------------------------

 

APPENDIX B

MAJOR SPARE PARTS

 

B.01 Description of Major Spare Parts. Those major items, each costing more than
$100,000, as follows:

 

Quantity

--------------------------------------------------------------------------------

  

Item

--------------------------------------------------------------------------------

   Serial Number

--------------------------------------------------------------------------------

1

   Motor Charging Pump    17528LN01

1

   Motor Charging Pump    17528LN02

1

   RCP Motor S/N 35-81P355    3S-81P355

1

   Low Head Safety INJ Pump Motor    17538LN01

1

   2B LP Rotor    TN12763

15

   2B LP Rotor    TN12763

2

   LP Rotor Discs Spare    23A3932

2

   LP Rotor Discs Spare    23A3932

2

   LP Rotor Discs Spare    23A3932

10

   LP Rotor Blades Spare    23A3932

4

   LP Rotor Discs Spare    23A3932

1

   LP Rotor Shaft Spare    23A3932

4

   LP Rotor Blades Spare    23A3932

2

   Spare Blade Rows 1A Rotor    23A3932

10

   2B LP Rotor Turbine Disc    TN12763

 

Major Spare Parts shall also include any other major items that the Parties
agree (i) to keep in inventory and (ii) to designate as Major Spare Parts for
possible use in replacing similar items in units located not only at the North
Anna Nuclear Power Station but also at other power stations. Such designation
shall state the units that the Major Spare Part is designated to serve.

 

B.02 Old Dominion’s Percentage Ownership Interest in Major Spare Parts.

 

(a) Except as otherwise modified by the operation of Sections 15.03, 16.01 or
16.02 of the Purchase, Construction and Ownership Agreement, Old Dominion shall
own its Old Dominion’s Percentage Ownership Interest in any Major Spare Part
until such Major Spare Part is used in a unit other than the Units. Upon use in
any such unit, Dominion Virginia Power shall purchase such Major Spare Part from
Old Dominion in accordance with B.04 hereof.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 87

--------------------------------------------------------------------------------

 

(b) Dominion Virginia Power agrees to pay carrying charges, if any, with respect
to each Major Spare Part equal to (i) Old Dominion’s Percentage Ownership
Interest, less (ii) the sum of Old Dominion’s Percentage Ownership Interest in
any Unit that the Major Spare Part serves, divided by the total number of units
served by the Major Spare Part.

 

(c) It is the intention of the Parties that the formula be reapplied at any time
that the number of units served by any Major Spare Part or Old Dominion’s
Percentage Ownership Interest changes for any reason. In any case where
ownership interest of the Parties are adjusted, the provisions of Section 16.04
of the Purchase, Construction and Ownership Agreement shall apply and
appropriate payment shall be made pursuant to Section B.04 hereof.

 

B.03 Ownership Responsibilities – Major Spare Parts. Dominion Virginia Power may
make use of any Major Spare Part in any of the units at the North Anna Nuclear
Power Station or other power stations for which such parts have been designated
to serve in accordance with Section B.01 hereof and in accordance with the
following conditions:

 

  A. If at any time a unit at the North Anna Nuclear Power Station or other
power Stations has need of a Major Spare Part to replace any part of an
equivalent item that has been damaged, such Major Spare Part may be used in such
unit; provided that another unit (for which the part has been designated in
accordance with Section B.01 hereof) located at either station had not been
damaged earlier and made prior claim to use such Major Spare Part.

 

  B. When a Major Spare Part is used in any unit, Dominion Virginia Power and
Old Dominion shall have an obligation either to (i) repair such damaged item or
(ii) to acquire a new item in place of the damaged item, as expeditiously as
possible, and to return it to the original location of the Major Spare Part that
was used. Payment therefore will be in accordance with Section B.04 hereof.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 88

--------------------------------------------------------------------------------

 

Any time than any Major Spare Part is used in any unit other than the Units,
Dominion Virginia Power shall be obliged to make payment to Old Dominion. The
adjustment of ownership interest at the time a Major Spare Part is used shall
conform, in all respects, to the provisions of Section 16.04 of the Purchase,
Construction and Ownership Agreement.

 

B.04 Cost Responsibilities – Major Spare Parts. Cost and payment
responsibilities of the Parties for the Major Spare Parts shall be determined in
accordance with the following:

 

  A. Subject to the provisions of Section B.04 (D) hereof, the responsibility of
the Parties for any New Investment or costs for any Major Spare Part will be
shared in proportion to the Parties then current ownership interest in that
Major Spare Part.

 

  B. Dominion Virginia Power shall pay carrying charges on the interest stated
in Section B.02(b), based upon the same principles under which carrying charges
are paid pursuant to this Appendix B, excluding cancellation costs, taxes
payable at closing and deferred taxes set forth in Exhibit N of the Purchase
Agreement and the 15 percent mark-up reflected therein, while reflecting Old
Dominion’s actual cost of capital used to finance such Major Spare Parts, rather
than 11%.

 

  C. Upon the use of any Major Spare Part in a non-North Anna unit, Dominion
Virginia Power shall pay Old Dominion the amount necessary so that Old
Dominion’s net investment as reflected on Old Dominion’s books in that Major
Spare Part is $0. Upon the use of any Major Spare Part in a Unit, Dominion
Virginia Power will cease paying carrying charges pursuant to Section B.02(b) on
that Major Spare Part until a replacement Major Spare Part is acquired. The
provisions of Section 16.04 of the Purchase, Construction and Ownership
Agreement shall apply to any adjustment under that Section.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 89

--------------------------------------------------------------------------------

 

  D. The parties shall pay for any replacement Major Spare Part, subject to the
next sentence, in proportion to their respective ownership interests in the unit
in which the Major Spare Part was used, but the investment attributed to the
replacement Major Spare Part when such is designated as a Major Spare Part shall
be equal to the dollar amount initially invested in the Major Spare Part that
was used in the Unit needing that part. Accordingly, when the repaired or
replacement part is designated a Major Spare Part, a payment shall be made to
the appropriate Party so that the then resulting investment of the Parties in
the Major Spare Part shall be equal to the investment of the Parties in the
Major Spare Part that was used in the Unit needing that part.

 

  E. Upon any adjustment in Old Dominion’s Percentage Ownership Interest in any
Major Spare Part pursuant to Section B.02(c), payment shall be made to the Party
whose ownership interest decreased, so that the percentage investment (including
all cost components comprising New Investment, undepreciated) of each Party
shall be equal to that Party’s percentage ownership interest in the respective
Major Spare Part.

 

B.05 Hypothetical Illustration.

 

Hypothetical Illustration of Cost Responsibility

Associated with Ownership, Use and Replacement

Of Major Spare Parts Pursuant to Exhibit C

 

1.

   Major Spare Part – Net Investment    $ 10,000.00

2.

   Ownership Responsibility   

Dominion Virginia Power             88.4%

   $ 8,840,000          

Old Dominion                                11.6%

   $ 1,160,000

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 90

--------------------------------------------------------------------------------

 

    

Case (1)

  

Major Spare Part Utilized at the

                

Surry Nuclear Power Station

                

- Replacement Costs More

      

1.

  

Payment to Old Dominion at the time Major Spare Part is taken from its storage
location

   $ 1,160,000

2.

  

Cost of replacement (FOB) paid by Dominion Virginia Power (100%)

   $ 20,000,000

3.

  

Payment by Old Dominion at the time Major Spare Part is replaced in its original
location

   $ 1,160,000

4.

  

Net Investment in the Major Spare Part for computation of cost responsibility
when such part is next utilized

   $ 10,000,000     

Case (2)

  

Major Spare Part Utilized at the

                

North Anna Nuclear Power Station

                

- Replacement Costs More

      

1.

  

No payment at the time Major Spare Part is taken from its storage location

   $  

2.

  

Cost of replacement (FOB) paid by:

           

Dominion Virginia Power (88.4% x $20,000,000)

   $ 17,680,000     

Old Dominion (11.6% x $20,000,000)

   $ 2,320,000

3.

  

Net Investment in the Major Spare Part for computation of cost responsibility
when such part is next utilized

   $ 10,000,000     

Case (3)

  

Major Spare Part Utilized at the

                

Surry Nuclear Power Station

                

- Replacement Costs Less

      

1.

  

Payment to Old Dominion at the time Major Spare Part is taken from its storage
location

   $ 1,160,000

2.

  

Cost of replacement (FOB) paid by Dominion Virginia Power (100%)

   $ 5,000,000

3.

  

Payment by Old Dominion at the time Major Spare Part is replaced in its original
location

   $ 1,160,000

4.

  

Net Investment in the Major Spare Part for computation of cost responsibility
when such part is next utilized

   $ 10,000,000

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 91

--------------------------------------------------------------------------------

 

    

Case (4)

  

Major Spare Part Utilized at the

                

North Anna Nuclear Power Station

                

- Replacement Costs Less

      

1.

  

No payment at the time Major Spare Part is taken from its storage location

   $  

2.

  

Cost of replacement (FOB) paid by:

           

Dominion Virginia Power (88.4% x $5,000,000)

   $ 4,420,000     

Old Dominion (11.6% x $5,000,000)

   $ 580,000

3.

  

Net Investment in the Major Spare Part for computation of cost responsibility
when such part is next utilized

   $ 10,000,000

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 92

--------------------------------------------------------------------------------

 

APPENDIX C

NORTH ANNA UNIT 1

 

All property of Dominion Virginia Power appearing in the following accounts on
Dominion Virginia Power’s books of account that is defined as North Anna Unit 1
in this Agreement as well as the Construction Work in Progress and the Completed
Construction Not Classified related thereto:

 

FERC

ACCOUNT

--------------------------------------------------------------------------------

  

DESCRIPTION

--------------------------------------------------------------------------------

321

  

Structures and Improvements

322

  

Reactor Plant Equipment

323

  

Turbogenerator Units

324

  

Accessory Electric Equipment

325

  

Miscellaneous Power Plant Equipment

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 93

--------------------------------------------------------------------------------

 

APPENDIX D

NORTH ANNA UNIT 2

 

All property of Dominion Virginia Power appearing in the following accounts on
Dominion Virginia Power’s books of account that is defined as North Anna Unit 2
in this Agreement as well as the Construction Work in Progress and the Completed
Construction Not Classified related thereto:

 

FERC

ACCOUNT

--------------------------------------------------------------------------------

    

DESCRIPTION

--------------------------------------------------------------------------------

321

    

Structures and Improvements

322

    

Reactor Plant Equipment

323

    

Turbogenerator Units

324

    

Accessory Electric Equipment

325

    

Miscellaneous Power Plant Equipment

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 94

--------------------------------------------------------------------------------

 

APPENDIX E

MEMBERS

 

BARC Electric Cooperative

Millboro, VA

 

Community Electric Cooperative

Windsor, VA

 

Mecklenburg Electric Cooperative

Chase City, VA

 

Northern Neck Electric Cooperative

Warsaw, VA

 

Northern Virginia Electric Cooperative

Manassas, VA

 

Prince George Electric Cooperative

Waverly, VA

 

Rappahannock Electric Cooperative

Fredericksburg, VA

 

Shenandoah Valley Electric Cooperative

Mt. Crawford, VA

 

Southside Electric Cooperative

Crewe, VA

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 95

--------------------------------------------------------------------------------

 

APPENDIX F

SUPPORT FACILITIES

 

F.01 Definition of Support Facilities. At the Effective Date, the following
shall be the Support Facilities:

 

ELECTRIC PLANT IN SERVICE

   

FERC ACCOUNT

 

DESCRIPTION

353

 

Transmission Station Equipment

   

Telemetering Equipment

COMPLETED CONSTRUCTION NOT CLASSIFIED

   

PROJECT NO.

 

DESCRIPTION

99-0182

 

Surry Nuclear Training Simulator

99-0313

 

Personnel Radiation Monitoring Exposure System

99-2291

 

Nuclear Station Emergency Plan

   

Total Completed Construction Not Classified

CONSTRUCTION WORK IN PROGRESS

   

PROJECT NO.

 

DESCRIPTION

 

Thereafter, Support Facilities shall mean all those North Anna Facilities,
wherever situated, including, but not limited to, both real and personal
property, exclusive of Nuclear Fuel, Operating Inventory and Major Spare Parts,
which are purchased, leased or otherwise obtained for the construction,
operation and maintenance of one or more Unit(s) located at the North Anna
Nuclear Power Station and one or more nuclear Unit(s) located at Dominion
Virginia Power Surry Nuclear Power Station or at such other location as Dominion
Virginia Power may have an interest in any nuclear facility and are listed in
the following accounts in accordance with the Uniform System of Accounts:

 

    Plant In Service Acct. 101   CCNC Acct. 106

321 – Structures and Improvements

       

325 – Miscellaneous Power Plant Equipment

       

353 – Transmission Station Equipment

       

397 – Communication Equipment

       

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 96

--------------------------------------------------------------------------------

 

Construction Work in Progress

 

F.02 Old Dominion’s Percentage Ownership Interest in Support Facilities. (a)
Except as otherwise modified by the operation of Sections 15.03, 16.01 or 16.02
of the Purchase, Construction and Ownership Agreement, Old Dominion’s Percentage
Ownership Interest in any Support Facility shall be an undivided ownership
interest determined in accordance with the following formula:

 

SFOI =   

Sum of Old Dominion Percentage Ownership Interests in all Units that the Support
Facility serves

--------------------------------------------------------------------------------

  

Number of units served by Support Facility

 

(b) It is the intention of the Parties that the formula be reapplied at any time
that the number of units served by any Support Facility changes for any reason.
In any case where ownership interest of the Parties are adjusted, the provisions
of Section 16.04 of the Purchase, Construction and Operating Agreement, shall
apply and appropriate payment shall be made pursuant to Section F.03 hereof.

 

F.03 Investment and Cost Responsibilities of the Parties for Support Facilities.
The investment and cost responsibilities of the Parties for any Support Facility
will be shared in proportion to the Parties’ then current ownership interest in
that Support Facility. Upon any

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 97

--------------------------------------------------------------------------------

 

adjustment in Old Dominion’s Percentage Ownership Interest in any Support
Facility, payment shall be to the Party whose ownership decreased, so that the
percentage investment (including all cost components comprising New Investment,
undepreciated) of each Party shall be equal to that Party’s percentage ownership
interest in the respective Support Facility.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 98

--------------------------------------------------------------------------------

 

APPENDIX G

MONTHLY RESERVE ENERGY CHARGES

 

For the period after the termination of Article VIII, the Monthly Reserve Energy
Charge shall be determined annually based on the projected energy costs of
designated Dominion Virginia Power peaking units operating at the time and
included in the production cost model used by Dominion Virginia Power to develop
its annual corporate budget, subject to an annual true-up on fuel costs
(including H&A), in accordance with the provisions stated below. The projected
energy costs shall include fuel, H&A, and variable O&M expenses. The Monthly
Reserve Energy Charge determined in this section shall be applicable to all Old
Dominion Reserve Energy supplied by Dominion Virginia Power.

 

     RECe    =    RECRe + VOMr

Where:

   RECRe    =    Projected Monthly Reserve Energy Charge rate based on projected
fuel cost (including H&A) for designated peaking units on a $/kWh Basis     
RECe    =    Projected Monthly Reserve Energy Charge

 

               r           VOMr    =    S    [projected year’s peaking units’
total O&M cost                Rdpu = 1    - projected year’s peaking units’ fuel
and H&A cost]

 

                    r                                 x 0.35    ÷ S    Projected
Year’s Peaking Units’ Energy                     Rdpu     

 

     Rdpu = designated peaking units index      r = total number of peaking
units      For the Monthly Reserve Energy Charge annual true-up, Dominion
Virginia Power’s twelve month ending report entitled “Dominion Virginia Power –
Fuels Consumed Within Power Stations” for each respective year will be used to
determine the actual fuel costs of the designated Dominion Virginia Power
peaking units. The amount of refund or credit due to the respective Party shall
be determined as follows:

 

     RECD     =              REa x (RECRe - FRECa) Where:    RECD    =       
Amount of Monthly Reserve Energy Charge adjustment

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 99

--------------------------------------------------------------------------------

 

REa

   =    Actual Annual Old Dominion Reserve Energy

FRECa

   =    Monthly Reserve Energy Charge rate based on actual fuel cost (including
H&A) for designated peaking units on a $/kWh basis.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 100

--------------------------------------------------------------------------------

 

APPENDIX H

DETERMINATION OF OLD DOMINION RESERVE ENERGY

 

I.

  

Old Dominion Reserve Energy is equal to:

         

(a)

   Old Dominion Monthly North Anna Energy that would have been produced for the
month were the Old Dominion Monthly North Anna Capacity fully available all
month,     

Plus

  

(b)

   Old Dominion Monthly Accredited Non-firm Energy that would have been produced
for the month were the Old Dominion Monthly Accredited Non-firm Capacity fully
available all month,     

Less

  

(c)

   Old Dominion Monthly Accredited Non-firm Energy that could have been produced
but was not produced for economic dispatch reasons,     

Less

  

(d)

   Old Dominion Monthly North Anna Energy,     

Less

  

(e)

   Old Dominion Monthly Accredited Non-Firm Energy,     

Less

  

(f)

   Displacement Reserve Energy.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 101

--------------------------------------------------------------------------------

 

APPENDIX I

CHARGES FOR RESERVE CAPACITY

 

Charges for Buyer’s purchases of Reserve Capacity from Dominion Virginia Power
shall be calculated according to the following provisions, subject to approval
of these terms, conditions and charges by FERC:

 

The Reserve Capacity Charge shall be determined in accordance with Section 9.01
of this Agreement.

 

The Reserve Capacity Charge shall be as set forth below:

 

Old Dominion Reserve Capacity - North Anna (a)

                   Kw

Old Dominion Reserve Capacity - Clover (a)

                   Kw

Reserve Capacity Charge per Kw:

    

 

The Reserve Capacity Charge shall be determined based on designated Dominion
Virginia Power-owned peaking units. The Reserve Capacity Charges are set forth
below:

 

Reserve Capacity Charge per Kw:

 

the period beginning with the Effective Date and continuing through Calendar
Year 2005

 

$3.948/Kw - month

 

The rate for the Calendar Year 2005 above will continue thereafter until either
Party gives the other Party six months written notice to change the rate.

 

The above Reserve Capacity Charges are exclusive of ancillary service charges
which shall be paid pursuant to the Open Access Transmission Tariff.

 

[Note (a): Old Dominion Reserve Capacity will be adjusted from time to time to
reflect adjustments to the System Reserve Margin and to reflect the current
rated capability of the generator units.]

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 102

--------------------------------------------------------------------------------

 

APPENDIX J

CAPABILITY TABLE FOR MARSH RUN AND LOUISA FACILITIES

 

Unit Name

--------------------------------------------------------------------------------

   Summer (June-September)

--------------------------------------------------------------------------------

   Other Months

--------------------------------------------------------------------------------

  

Variable
O&M

$/Mwhr

--------------------------------------------------------------------------------

  

Start Up
Cost

$/Start

--------------------------------------------------------------------------------

   Max
Capacity
MW

--------------------------------------------------------------------------------

   Min Capacity
MW

--------------------------------------------------------------------------------

   Max HR
Btu/kwhr

--------------------------------------------------------------------------------

   Min HR
Btu/kwhr

--------------------------------------------------------------------------------

   Max Capacity
MW

--------------------------------------------------------------------------------

   Min Capacity
MW

--------------------------------------------------------------------------------

   Max HR
Btu/kwhr

--------------------------------------------------------------------------------

   Min HR
Btu/kwhr

--------------------------------------------------------------------------------

     

Louisa 7F

   155    100    10,700    11,700    189    115    10,200    11,200    $ 2.19   
$ 5,500

Louisa 7E1

   76    50    11,900    12,300    88    53    11,400    11,800    $ 2.19    $
4,600

Louisa 7E2

   76    50    11,900    12,300    88    53    11,400    11,800    $ 2.19    $
4,600

Louisa 7E3

   76    50    11,900    12,300    88    53    11,400    11,800    $ 2.19    $
4,600

Louisa 7E4

   76    50    11,900    12,300    88    53    11,400    11,800    $ 2.19    $
4,600

Marsh Run1*

   155    100    10,700    11,700    189    115    10,200    11,200    $ 2.19   
$ 5,500

Marsh Run2*

   155    100    10,700    11,700    189    115    10,200    11,200    $ 2.19   
$ 5,500

Marsh Run3*

   155    100    10,700    11,700    189    115    10,200    11,200    $ 2.19   
$ 5,500

--------------------------------------------------------------------------------

* All Marsh Run values are estimated numbers which will be ultimately determined
based on performance testing and site specific cost information.

 

Summer ratings are based on 90 degrees and 60% humidity; winter ratings are
based on 32 degrees. Actual capability will vary with ambient conditions.

 

Capacity and heat rate values are “new and clean” and do not consider
degradation over the term of the Agreement. They may need to be modified for
such degradation.

 

Variable O&M includes electricity for start-up, chemicals and routine
maintenance. No emissions allowance costs are included and will need to be added
beginning summer 2004. Start up costs includes long-term maintenance and fuel
cost for start-up assuming $5.43/mbtu gas.

 

The total capability of each of the Louisa Plant and the Marsh Run Plant is
limited to the lesser of the amounts shown (as potentially modified, pursuant to
the foregoing) or the amount of Network Integration Transmission Service that is
available from that plant.

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 103

--------------------------------------------------------------------------------

 

APPENDIX K

DOMINION VIRGINIA POWER

MONTHLY STATEMENT TO THE

COOPERATIVES

MONTH OF                          20        

 

(1)

  

Total Operation and Maintenance Charges

      

(2)

  

New Investment including Nuclear Fuel

      

(3)

  

Charges for Supplemental Energy (Article VIII)

      

(4)

  

Reserve Energy Charges (Article IX)

      

(5)

  

Reserve Capacity Charges (Appendix I)

      

(6)

  

Rappahannock Wheeling Charge Credit

      

(7)

  

PJM Charges (Specify)

      

(8)

  

Other (Specify)

      

TOTAL

   $                         

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 104

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA NUCLEAR STATION

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

(MONTH) BUDGET

See Footnote (A) of Appendix L

 

I. BILLING FORMAT

 

North Anna Station Costs - ODEC’s Budget at 11.6%

 

          (MONTH)

--------------------------------------------------------------------------------

STATION TOTAL O&M BY G/L ACCOUNT

   —            

--------------------------------------------------------------------------------

5300110-5300220

  

Salaries

   —  

    5304100-5304320

  

Materials & Supplies

   —  

5303010

  

Contractor Labor

   —  

5303030

  

Services

   —  

5399900

  

Other Expenses

   —            

--------------------------------------------------------------------------------

    

Total Activity Allocations

   —            

--------------------------------------------------------------------------------

Act. Allocations

  

Act. All/Planned Project Labor

   —  

Act. Allocations

  

Shared Services - Labor

   —       

Cost of Removal

   —            

--------------------------------------------------------------------------------

    

Total Payroll Adders

   —            

--------------------------------------------------------------------------------

8100015

  

Success Sharing

   —  

5703100

  

Payroll Taxes

   —  

8100000

  

Benefits/Pensions

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 105

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA NUCLEAR STATION

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSE

(MONTH OF) BILL

(MONTH) ACTUALS

See Footnote (A) of Appendix L

 

COST ELEMENT GROUP-XJO_NA02

--------------------------------------------------------------------------------

   100%
Actuals

--------------------------------------------------------------------------------

  

ODEC’s Rate

11.60%

ODEC’S
Ownership

--------------------------------------------------------------------------------

5001040 Fuel Expense - #2 Oil

   —      —  

5001045 Fuel Expense - #2 Oil EDG

   —      —  

    5300110 Sal-ST Wages

   —      —  

    5300120 Sal-OT Wages

   —      —  

    5300130 Sal-Supp Pay

   —      —  

    5300140 Sal-Adm Leave

   —      —  

    5300170 Sal-Incentive/Bonu

   —      —  

    5300180 Sal-Incentive Pay

   —      —  

    5300210 Hrly-ST Wages

   —      —  

    5300220 Hrly-OT Wages

   —      —  

    5300230 Hrly-Supp Pay

   —      —  

    5302010 Travel Expense

   —      —  

    5302020 Entertainment Expn

   —      —  

    5302110 Recruiting Expense

   —      —  

    5302120 Transfer/Relocatio

   —      —  

    5302920 Tuition Reimbursmn

   —      —  

    5302930 Employee Relations

   —      —  

    5302940 Safety Functions

   —      —  

    5302990 Misc Emp Related E

   —      —  

    5303010 Contractor Labor S

   —      —  

    5303011 Contractor Equipme

   —      —  

    5303015 Contractor Labor O

   —      —  

    5303020 Contractor Materia

   —      —  

    5303030 Contractor Service

   —      —  

    5303110 Office Equip Maint

   —      —  

    5303130 Building/Grds Main

   —      —  

    5303190 Misc Repairs/Maint

   —      —  

    5303310 Consultant Service

   —      —  

    5303320 Training Services

   —      —  

    5303850 Testing Services

   —      —  

    5303890 Misc. Outside Svcs

   —      —  

    5304100 Material Exp-Stock

   —      —  

    5304105 Material Exp-Stk C

   —      —  

    5304110 Material Exp-Cst D

   —      —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 106

--------------------------------------------------------------------------------

 

APPENDIX L

 

VIRGINIA POWER

NORTH ANNA NUCLEAR STATION

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSE

(MONTH OF) BILL

(MONTH) ACTUALS

See Footnote (A) of Appendix L

 

COST ELEMENT GROUP-XJO_NA02

--------------------------------------------------------------------------------

   100%
Actuals

--------------------------------------------------------------------------------

  

ODEC’s Rate

11.60%
ODEC’S
Ownership

--------------------------------------------------------------------------------

    5304120 Material Exp-Obsle

   —      —  

    5304140 Material Exp-Inv R

   —      —  

    5304200 Material Exp-Non S

   —      —  

    5304310 Office Supplies

   —      —  

    5304320 Postage & Shipping

   —      —  

    5304330 Laboratory Supplie

   —      —  

    5304350 Office Furn & Equi

   —      —  

    5304390 Misc Supplies

   —      —  

    5304400 VISA Purchases

   —      —  

    5304410 Purchsng Card Exp

   —      —  

    5307010 Rent Exp-Buildings

   —      —  

    5307030 Rent Exp-Equipment

   —      —  

    5307040 Rent Exp-Vehicles

   —      —  

    5307090 Rent Exp-Misc

   —      —  

    5308010 Subscriptions

   —      —  

    5308020 Professional Dues

   —      —  

    5308040 Industry Assoc Due

   —      —  

    5309010 Utilities - Electr

   —      —  

    5309020 Utilities - Phone

   —      —  

    5310030 Regulatory Fees

   —      —  

    5310050 Environmental Fees

   —      —  

    5310090 Miscellaneous Fees

   —      —  

    5399070 Vehicle Expenses-M

   —      —  

    5399900 Miscellaneous Exp

   —      —  

    8100018 Vehicle Indirect C

   —      —  

    8201003 Enginring/Design S

   —      —  

    8201009 Training

   —      —  

    8201014 Technical Support

   —      —  

    8201016 Information Technology

   —      —  

    8201018 Electrical ST

   —      —  

    8201019 Operations - ST

   —      —  

    8201022 Mechanical - ST

   —      —  

    8201024 Helper - ST

   —      —  

    8201026 Radwaste Mangemnt

   —      —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 107

--------------------------------------------------------------------------------

 

APPENDIX L

 

VIRGINIA POWER

NORTH ANNA NUCLEAR STATION

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSE

(MONTH OF) BILL

(MONTH) ACTUALS

See Footnote (A) of Appendix L

 

COST ELEMENT GROUP-XJO_NA02

--------------------------------------------------------------------------------

   100%
Actuals

--------------------------------------------------------------------------------

  

ODEC’s Rate

11.60%
ODEC’S
Ownership

--------------------------------------------------------------------------------

    8201032 Supervision

   —      —  

    8201114 Technical Support

   —      —  

    8201119 Operations - OT

   —      —  

    8202001 Vehicle Usage

   —      —  

Subtotal

   —      —  

Payroll Adders

         

8703100 Payroll Taxes

   —      —  

8100000 Benefits

   —      —       

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

Subtotal

   —      —  

TOTAL

   —      —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 108

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA NUCLEAR STATION

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

BUDGET REVERSAL FOR (MONTH, YEAR)

See Footnote (A) of Appendix L

 

North Anna Station Costs - ODEC’s Budget at 11.6%

 

          (MONTH)

--------------------------------------------------------------------------------

TOTAL O&M BY G/L ACCOUNT

   —            

--------------------------------------------------------------------------------

5300110-5300220

  

Salaries

   —  

5304100-5304320

  

Materials & Supplies

   —  

5303010

  

Contractor Labor

   —  

5303030

  

Services

   —  

5399900

  

Other Expenses

   —            

--------------------------------------------------------------------------------

    

Total Activity Allocations

   —            

--------------------------------------------------------------------------------

Act. Allocations

  

Act. All/Planned Project Labor

   —  

Act. Allocations

  

Shared Services - Labor

   —       

Cost of Removal

   —            

--------------------------------------------------------------------------------

    

Total Payroll Adders

   —            

--------------------------------------------------------------------------------

8100015

  

Success Sharing

   —  

5703100

  

Payroll Taxes

   —  

8100000

  

Benefits/Pensions

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 109

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA NUCLEAR STATION - COMMERCIAL

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

(MONTH) BUDGET

See Footnote (A) of Appendix L

 

AT ODEC’S BUDGET @ 11.6%

 

          (MONTH)

--------------------------------------------------------------------------------

Total O&M Commercial - N.A. Station

   —            

--------------------------------------------------------------------------------

Total O&M Expenses:

   —            

--------------------------------------------------------------------------------

5300110

  

Wages

   —  

5304100

  

Mat. - Stock

   —  

5303890

  

Outside Serv.

   —  

8100013

  

Transpor.

   —  

Billing Surcharge of 10.5%

        —            

--------------------------------------------------------------------------------

Total Payroll Adders:

        —            

--------------------------------------------------------------------------------

8100015

  

Suc. Share

   —  

5703100

  

Payroll Taxes

   —  

8100000

  

Benefits

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 110

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA NUCLEAR STATION- COMMERCIAL

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSE

(MONTH OF) BILL

(MONTH) ACTUALS

See Foonote (A) of Appendix L

 

COST ELEMENT GROUP-XJO_NA02

--------------------------------------------------------------------------------

   100%
Actuals

--------------------------------------------------------------------------------

  

ODEC’s Rate
11.60%

ODEC’S
Ownership

--------------------------------------------------------------------------------

                                                                              
    

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 111

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA NUCLEAR STATION - COMMERCIAL

NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

BUDGET REVERSAL FOR (MONTH, YEAR)

See Footnote (A) of Appendix L

 

AT ODEC’S BUDGET @ 11.6%

 

          (MONTH)

--------------------------------------------------------------------------------

Total O&M Commercial - N.A. Station

   —            

--------------------------------------------------------------------------------

Total O&M Expenses:

   —            

--------------------------------------------------------------------------------

        5300110

  

Wages

   —  

        5304100

  

Mat. - Stock

   —  

        5303890

  

Outside Serv.

   —  

        8100013

  

Transpor.

   —            

--------------------------------------------------------------------------------

Billing Surcharge of 10.5%

   —            

--------------------------------------------------------------------------------

Total Payroll Adders:

   —            

--------------------------------------------------------------------------------

        8100015

  

Suc. Share

   —  

        5703100

  

Payroll Taxes

   —  

        8100000

  

Benefits

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 112

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

OTHER NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

(MONTH) BUDGET

See Footnote (B) of Appendix L

 

          (MONTH)

--------------------------------------------------------------------------------

Total G&A by G/L Account:

   —            

--------------------------------------------------------------------------------

    5300110-5300220

  

Salaries

   —            

--------------------------------------------------------------------------------

    

Total Materials:

   —            

--------------------------------------------------------------------------------

    5304100-5304320

  

Materials & Supplies

   —  

    5304100-5304320

  

Planned Matl Overhead

   —  

5303010

  

Contractor Labor

   —  

5303030

  

Services

   —  

5399900

  

Other Expenses

   —  

5310030

  

Regulatory Fees (NRC, FEMA, State EP)

   —  

Act. Allocations

  

Planned Project Labor

   —            

--------------------------------------------------------------------------------

    

Total Payroll Adders

   —            

--------------------------------------------------------------------------------

8100000

  

Benefits/Pensions

   —  

8100015

  

Success Sharing

   —  

5703100

  

Payroll Taxes

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 113

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

OTHER NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

(MONTH) ACTUALS

See Footnote (B) of Appendix L

 

COST ELEMENT GROUP-XJO_NA91

--------------------------------------------------------------------------------

   100%
Actuals

--------------------------------------------------------------------------------

  

ODEC’S

Ownership

--------------------------------------------------------------------------------

    5300110 Sal-ST Wages

   —      —  

    5300120 Sal-OT Wages

   —      —  

    5300130 Sal-Supp Pay

   —      —  

    5300170 Sal-Incentive/Bonu

   —      —  

    5300180 Sal-Incentive/Pay

   —      —  

    5300210 Hrly-ST Wages

   —      —  

    5300220 Hrly-OT Wages

   —      —  

    5300230 Hrly-Supp Pay

   —      —  

    5302010 Travel Expense

   —      —  

    5302110 Recruiting Expense

   —      —  

    5302120 Transfer/Relocatio

   —      —  

    5302920 Tuition Reimbursmn

   —      —  

    5302930 Employee Relations

   —      —  

    5302940 Safety Functions

   —      —  

    5302990 Misc Emp Related E

   —      —  

    5303010 Contractor Labor S

   —      —  

    5303015 Contractor Labor Ov

   —      —  

    5303030 Contractor Service

   —      —  

    5303110 Office Equip Maint

   —      —  

    5303120 Comp & Sftware Mai

   —      —  

    5303130 Building/Grds Main

   —      —  

    5303190 Misc Repairs/Maint

   —      —  

    5303310 Consultant Service

   —      —  

    5303320 Training Services

   —      —  

    5303840 Securty&Invstgtn S

   —      —  

    5303890 Misc. Outside Svcs

   —      —  

    5304100 Material Exp-Stock

   —      —  

    5304105 Material Exp-Stk C

   —      —  

    5304120 Material Exp-Obsle

   —      —  

    5304200 Material Exp-Non S

   —      —  

    5304210 Auto Parts & Supp

   —      —  

    5304310 Office Supplies

   —      —  

    5304320 Postage & Shipping

   —      —  

    5304330 Laboratory Supplie

   —      —  

    5304340 Sftwr/Hrdwr Purch

   —      —  

    5304350 Office Furn & Equip

   —      —  

    5304360 Promotion Supplies

   —      —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 114

--------------------------------------------------------------------------------

 

APPENDIX L

 

VIRGINIA POWER

OTHER NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

(MONTH) ACTUALS

See Footnote (B) of Appendix L

 

COST ELEMENT GROUP-XJO_NA91

--------------------------------------------------------------------------------

   100%
Actuals

--------------------------------------------------------------------------------

   ODEC’S
Ownership

--------------------------------------------------------------------------------

    5304390 Misc Supplies

   —      —  

    5304410 Purchsng Card Exp

   —      —  

    5307030 Rent Exp-Equipment

   —      —  

    5307040 Rent Exp-Vehicles

   —      —  

    5307090 Rent Exp-Misc

   —      —  

    5308010 Subscriptions

   —      —  

    5308020 Professional Dues

   —      —  

    5308040 Industry Assoc Due

   —      —  

    5308090 Other Dues&Members

   —      —  

    5309010 Utilities - Electr

   —      —  

    5309020 Utilities - Phone

   —      —  

    5310020 Licensing Fees

   —      —  

    5310030 Regulatory Fees

   —      —  

    5399070 Vehicle Expenses-M

   —      —  

    5399900 Miscellaneous Exp

   —      —  

    8100018 Vehicle Indirect C

   —      —  

    8201001 Finance/Accting ST

   —      —  

    8201003 Enginring/Design S

   —      —  

    8201005 Environmental

   —      —  

    8201007 Fuel Management

   —      —  

    8201008 Administration ST

   —      —  

    8201010 Management

   —      —  

    8201014 Technical Support

   —      —  

    8201016 Information Technology

   —      —  

    8201032 Supervision

   —      —  

    8201056 Supply Chain - ST

   —      —  

    8201103 Enginring/Design - OT

   —      —  

    8201105 Environmental - OT

   —      —  

    8201116 Info Tech - OT

   —      —  

    8360020 Settle from Wires

   —      —  

    8360025 Settle from Bulk P

   —      —  

    8400000 MATERIAL OVERHEAD

   —      —  

    8402001 BILLING/G&A SURCHR

   —      —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 115

--------------------------------------------------------------------------------

 

APPENDIX L

 

VIRGINIA POWER

OTHER NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

(MONTH) ACTUALS

See Footnote (B) of Appendix L

 

COST ELEMENT GROUP-XJO_NA91

--------------------------------------------------------------------------------

   100%
Actuals

--------------------------------------------------------------------------------

  

ODEC’S

Ownership

--------------------------------------------------------------------------------

Subtotal

   —      —  

Payroll Adders

         

8100000 Benefits

   —      —  

5703100 Payroll Taxes

   —      —       

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

Subtotal

   —      —       

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

TOTAL

   —      —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 116

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

OTHER NUCLEAR PRODUCTION OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

BUDGET REVERSAL FOR (MONTH, YEAR)

See Footnote (B) of Appendix L

 

          (MONTH)

--------------------------------------------------------------------------------

Total G&A by G/L Account:

   —            

--------------------------------------------------------------------------------

    5300110-5300220

  

Salaries

   —            

--------------------------------------------------------------------------------

    

Total Materials:

   —            

--------------------------------------------------------------------------------

    5304100-5304320

  

Materials & Supplies

   —  

    5304100-5304320

  

Planned Matl Overhead

   —  

5303010

  

Contractor Labor

   —  

5303030

  

Services

   —  

5399900

  

Other Expenses

   —  

5310030

  

Regulatory Fees (NRC, FEMA, State EP)

   —  

Act. Allocations

  

Planned Project Labor

   —            

--------------------------------------------------------------------------------

    

Total Payroll Adders

   —            

--------------------------------------------------------------------------------

8100000

  

Benefits/Pensions

   —  

8100015

  

Success Sharing

   —  

5703100

  

Payroll Taxes

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 117

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA POWER STATION

ADMINISTRATIVE &GENERAL (A&G)

(MONTH OF) BILL

 

FERC
ACCOUNT

--------------------------------------------------------------------------------

       

ODEC’S

FLAT FEE

--------------------------------------------------------------------------------

(1)

   920   

A & G SALARIES

   $ 40,000

(2)

   921   

OFFICE SUPPLIES

     15,000

(3)

   922   

A&G EXPENSE TRANS.-CREDIT

      

(4)

   923   

OUTSIDE SERVICES

     10,000

(5)

   924   

PROPERTY INSURANCE

      

(6)

   925   

INJURIES & DAMAGES

     5,000

(7)

   927   

FRANCHISE REQUIREMENTS

      

(8)

   928   

REGULATORY COMMISSION EXPENSE

      

(9)

   929   

DUPLICATE CHARGES-CREDIT

      

(10)

   930   

MISC. GENERAL EXPENSES

     10,000

(11)

   931   

RENTS

     10,000               

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

         

TOTAL A&G

   $ 90,000               

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 118

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA SWITCHYARD

(MONTH OF) BILL

(MONTH) BUDGET

See Footnote (C) of Appendix L

 

          (MONTH)

--------------------------------------------------------------------------------

TOTAL O&M - Switchyard

   —            

--------------------------------------------------------------------------------

Total O&M Expense:

   —            

--------------------------------------------------------------------------------

5300110

  

Wages

   —  

5304100

  

Mat. - Stock

   —  

8100013

  

Transpor.

   —  

Billing Surcharge of 10.5%

        —            

--------------------------------------------------------------------------------

Total Payroll Adders:

   —            

--------------------------------------------------------------------------------

8100015

  

Suc. Share

   —  

5703100

  

Payroll Taxes

   —  

8100000

  

Benefits

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 119

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA SWITCHYARD

OPERATION AND MAINTENANCE EXPENSES

(MONTH OF) BILL

(MONTH) ACTUALS

See Footnote (C) of Appendix L

 

     100%
ACTUAL

--------------------------------------------------------------------------------

   ODEC’S
ACTUAL

--------------------------------------------------------------------------------

5302010 Travel Expense

   —      —  

5303030 Contractor Services

   —      —  

5304100 Materials Expense - ST

        —  

5304200 Materials Expense - Non S

   —      —  

8201014 Activity Allocation -

   —      —  

8201015 Activity Allocation -

        —  

8201018 Activity Allocation -

   —      —  

8201024 Activity Allocation -

        —  

8201032 Activity Allocation -

   —      —  

8201114 Activity Allocation -

   —      —  

8201118 Activity Allocation -

   —      —  

8202001 Vehicle Usage

   —      —  

8400000 Material Overhead

        —  

8402004 Proj. Manage. Surch

   —      —  

Total North Anna Switchyard

   —      —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]     

--------------------------------------------------------------------------------

Virginia Electric and Power Company

FERC Electric Tariff Original Volume No. 6

Original Service Agreement No. 25

  Original Sheet No. 120

--------------------------------------------------------------------------------

 

APPENDIX L

 

DOMINION VIRGINIA POWER

NORTH ANNA SWITCHYARD

(MONTH OF) BILL

BUDGET REVERSAL FOR (MONTH, YEAR)

See Footnote (C) of Appendix L

 

          (MONTH)

--------------------------------------------------------------------------------

TOTAL O&M - Switchyard

   —            

--------------------------------------------------------------------------------

Total O&M Expense:

   —            

--------------------------------------------------------------------------------

5300110

  

Wages

   —  

5304100

  

Mat. - Stock

   —  

8100013

  

Transpor.

   —  

Billing Surcharge of 10.5%

        —            

--------------------------------------------------------------------------------

Total Payroll Adders:

   —            

--------------------------------------------------------------------------------

8100015

  

Suc. Share

   —  

5703100

  

Payroll Taxes

   —  

8100000

  

Benefits

   —  

 

--------------------------------------------------------------------------------

Issued by:

  

Gregory J. Morgan

   Effective: [SUPPLY]     

Managing Director of Energy Supply

    

Issued on:

   [SUPPLY]