**____________**

**____________**

**(Mark      one)**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**For      the quarterly period ended March 31, 2006**

**or**

**____      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES      EXCHANGE ACT OF 1934**

**For      the transition period from to**

**Commission      File Number 001-03196**

**CONSOLIDATED      NATURAL GAS COMPANY**

**(Exact      name of registrant as specified in its charter)**

| **DELAWARE***(State                or other jurisdiction of incorporation or organization**)*                                          | **54-1966737***(I.R.S.                Employer Identification No.)* |
|----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                                                                                                   |                                                                |
| **120                TREDEGAR STREET****RICHMOND,                VIRGINIA***(Address                of principal executive offices**)* |  **23219***(Zip                Code**)*                        |
|                                                                                                                                   |                                                                |
| **(804)                819-2000***(Registrant's                telephone number)*                                                      |

**THE      REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND      (b)      OF FORM 10-Q AND IS FILING THIS FORM 10-Q UNDER THE REDUCED DISCLOSURE      FORMAT.**

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**INDEX**

|                                               |                                                                                                                        | Page  Number |
|----------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|------------------------|
| **PART                  I. Financial Information** |
|  Item                  1.                     |  Consolidated                  Financial Statements                                                                    |                   |
|                                               |  Consolidated Statements                  of Income - Three Months Ended March 31, 2006                  and 2005 |  3                |
|                                               |  Consolidated                  Balance Sheets - March 31, 2006 and December 31, 2005                                   |  4                |
|                                               |  Consolidated                  Statements of Cash Flows - Three Months Ended March 31, 2006 and                  2005  |  6                |
|                                               |  Notes                  to Consolidated Financial Statements                                                           |  7                |
|  Item                  2.                     |  Management's                  Discussion and Analysis of Results of Operations                                        |  22               |
|  Item                  4.                     |  Controls                  and Procedures                                                                              |  31               |
|                                               |  **PART                  II. Other Information**                                                                       |                   |
|  Item                  1.                     |  Legal                  Proceedings                                                                                    |  32               |
|  Item                  1A.                    |  Risk                  Factors                                                                                    |  32               |
|  Item                  6.                     |  Exhibits                                                                                                              |  34               |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**PART      I. FINANCIAL INFORMATION**

**ITEM      1. CONSOLIDATED FINANCIAL STATEMENTS**

**CONSOLIDATED      STATEMENTS OF INCOME**

**(Unaudited)      **

|                                                                                                                                 | **Three                Months Ended****        March                31,        ** |
|--------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 | **2006**                                                                                                                                                          | 2005 |
|                                                                                                                                 | (millions)                                                                                                                                                        |
|                                                                                                                                 |                                                                                                                                                              |   |
| **Operating                Revenue**                                                                                                 |                                                                                                                                                              |   |
|      External                customers                                                                      | **$2,623 **                                                                                                                                                  | $2,115  |
|      Affiliated                customers                                                                    | **     202**** **                                                                                                                   |      261  |
| Total                operating revenue                                                                                               | **  2,825**** **                                                                                                                                   |   2,376  |
|                                                                                                                                 |                                                                                                                                                              |   |
| **Operating                Expenses**                                                                                                |                                                                                                                                                              |   |
| Purchased                gas                                                                                                         |                                                                                                                                                              |   |
|      External                suppliers                                                                      | **1,178 **                                                                                                                                                   | 1,042  |
|      Affiliated                suppliers                                                                    | **172 **                                                                                                                                                     | 133  |
| Electric                fuel and energy purchases                                                                                    |                                                                                                                                                              |   |
|      External                suppliers                                                                      | **31 **                                                                                                                                                      | 27  |
|      Affiliated                suppliers                                                                    | **34 **                                                                                                                                                      | 45  |
| Other                energy-related commodity purchases                                                                              | **226 **                                                                                                                                                     | 89  |
| Other                operations and maintenance                                                                                      |                                                                                                                                                              |   |
|      External                suppliers                                                                      | **298 **                                                                                                                                                     | 240  |
|      Affiliated                suppliers                                                                    | **51 **                                                                                                                                                      | 43  |
| Depreciation,                depletion and amortization                                                                              | **218 **                                                                                                                                                     | 166  |
| Other                taxes                                                                                                           | **        99**** **                                                                                                  |         90  |
|           Total                operating expenses                                  | **   2,307**** **                                                                                                                             |    1,875  |
|                                                                                                                                 |                                                                                                                                                              |   |
| Income                from operations                                                                                                | **      518**** **                                                                                                             |       501  |
|                                                                                                                                 |                                                                                                                                                              |   |
| Other                income                                                                                                          | **          5 **                                                                                           |          3  |
|                                                                                                                                 |                                                                                                                                                              |   |
| Interest                and related charges                                                                                          |                                                                                                                                                              |   |
|      Interest                expense                                                                        | **       64 **                                                                                                            |       48  |
|      Interest                expense - junior subordinated notes payable to affiliated                trust | **          4***** ***                                                                                     |           4  |
|           Total                interest and related charges                        | **        68**** **                                                                                                  |         52  |
|                                                                                                                                 |                                                                                                                                                              |   |
| Income                before income taxes                                                                                            | **455 **                                                                                                                                                     | 452  |
| Income                tax expense                                                                                                    | **      254**** **                                                                                                             |       165  |
|                                                                                                                                 |                                                                                                                                                              |   |
| **Net                Income**                                                                                                        | **$    201**** **                                                                                                                        | $    287  |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**CONSOLIDATED      BALANCE SHEETS**

**(Unaudited)**

|                                                                                                                | **March                31,****2006**                    | December                31, 2005(1)            |
|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|-----------------------------------------------------|
|                                                                                                                | (millions)                                              |
| **ASSETS**                                                                                                          |                                                    |                                                |
|                                                                                                                |                                                    |                                                |
| **Current                Assets**                                                                                   |                                                    |                                                |
| Cash                and cash equivalents                                                                            | **$      24 **       | $      44        |
| Accounts                receivable:                                                                                 |                                                    |                                                |
| Customers                (less allowance for doubtful accounts of $15 and $27)                                      | **1,343 **                                         | 1,502                                          |
| Affiliates                                                                                                          | **223 **                                           | 214                                            |
| Other                                                                                                               | **111 **                                           | 110                                            |
| Inventories                                                                                                         | **69 **                                            | 366                                            |
| Derivative                assets                                                                                    | **1,672 **                                         | 1,991                                          |
| Deferred                income taxes                                                                                | **310 **                                           | 510                                            |
| Assets                held for sale                                                                                 | **1,154 **                                         | 2                                              |
| Prepayments                                                                                                         | **78 **                                            | 122                                            |
| Other                                                                                                               | **    389 **                   |        567  |
|           Total                current assets                     | **  5,373 **                             |     5,428                  |
|                                                                                                                |                                                    |                                                |
| **Investments**                                                                                                     | **      316 **       |        305  |
|                                                                                                                |                                                    |                                                |
| **Property,                Plant and Equipment**                                                                    |                                                    |                                                |
| Property,                plant and equipment                                                                        | **18,682 **                                        | 19,126                                         |
| Accumulated                depreciation, depletion and amortization                                                 | **   (6,589)**                           |    (6,780)                           |
|           Total                property, plant and equipment, net | **   12,093 **                      |    12,346                       |
|                                                                                                                |                                                    |                                                |
| **Deferred                Charges and Other Assets**                                                                |                                                    |                                                |
| Goodwill                                                                                                            | **623 **                                           | 623                                            |
| Prepaid                pension cost                                                                                 | **1,112 **                                         | 1,086                                          |
| Derivative                assets                                                                                    | **973 **                                           | 1,403                                          |
| Regulatory                assets                                                                                    | **116 **                                           | 403                                            |
| Other                                                                                                               | **       315 ** |        308  |
|           Total                deferred charges and other assets  | **    3,139 **                 |     3,823                  |
|                                                                                                                |                                                    |                                                |
|           Total                assets                             | **$20,921 **                                       | $21,902                                        |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**CONSOLIDATED      BALANCE SHEETS—(Continued)**

**(Unaudited)**

|                                                                                                                             |   |                                                    |    |   |  **                       March                  31,           **December                  31,                           **2006**                            2005(1) |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |   | (millions)                                              |
| **LIABILITIES                AND SHAREHOLDER’S EQUITY**                                                               |   |                                                    |
|                                                                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **Current                Liabilities**                                                                                      |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Securities                due within one year                                                                               |   | **$     734 **            | $            | 734    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Short-term                debt                                                                                              |   | **339**                                                 |         | 187    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Accounts                payable                                                                                             |   | **998**                                                 |         | 1,438  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Payables                to affiliates                                                                                       |   | **112 **                                           |         | 151    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Affiliated                current borrowings                                                                                |   | **2,135 **                                         |         | 1,922  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Accrued                interest, payroll and taxes                                                                          |   | **255 **                                           |         | 250    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Derivative                liabilities                                                                                       |   | **2,921 **                                         |         | 3,731  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Liabilities                held for sale                                                                                    |   | **443 **                                           |         | --     |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Other                                                                                                                       |   | **       421 ** |         | 489    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           Total                current liabilities                        |   | **    8,358 **                 |         | 8,902  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **Long-Term                Debt**                                                                                           |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Long-term                debt                                                                                               |   | **2,704 **                                         |         | 2,708  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Junior                subordinated notes payable to affiliated trust                                                        |   | **      206 **       |         | 206    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Total                long-term debt                                                                                         |   | **   2,910 **                       |         | 2,914  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **Deferred                Credits and Other Liabilities**                                                                   |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Deferred                income taxes and investment tax credits                                                             |   | **2,335 **                                         |         | 2,321  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Derivative                liabilities                                                                                       |   | **1,942 **                                         |         | 2,706  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Regulatory                liabilities                                                                                       |   | **129 **                                           |         | 147    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Other                                                                                                                       |   | **       590 ** |         | 621    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           Total                deferred credits and other liabilities     |   | **    4,996 **                 |         | 5,795  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           Total                liabilities                                |   | **   16,264 **                      |         | 17,611 |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **Commitments                and Contingencies**(see                Note 13)                                                |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **Common                Shareholder’s Equity**                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Common                stock**—**no                par value, 100 shares authorized and outstanding                    |   | **1,816 **                                         |         | 1,816  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Other                paid-in capital                                                                                        |   | **3,273 **                                         |         | 3,273  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Retained                earnings                                                                                            |   | **981 **                                           |         | 971    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Accumulated                other comprehensive loss                                                                         |   | **   (1,413)**                           |         | (1,769 | )                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|           Total                common shareholder’s equity          |   | **    4,657 **                 |         | 4,291  |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                        |   |                                                    |         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|           Total                liabilities and shareholder’s equity |   | **$20,921**                                             | $            | 21,902 |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**C****ONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                                       | **Three                Months Ended****        March                31,        ** |
|--------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                       | **2006**                                                                                                                                                          | 2005 |
|                                                                                                                                       | (millions)                                                                                                                                                        |
|                                                                                                                                       |                                                                                                                                                              |   |
| **Operating                Activities**                                                                                                    |                                                                                                                                                              |   |
| Net                income                                                                                                                  | **$ 201 **                                                                                                                                              | $ 287  |
| Adjustments                to reconcile net income to net cash provided by operating                activities:                            |                                                                                                                                                              |   |
|     Net                realized and unrealized derivative (gains)/losses                                               | **(258)**                                                                                                                                                         | 1  |
|     Depreciation,                depletion and amortization                                                            | **218 **                                                                                                                                                     | 166  |
|     Deferred                income taxes and investment tax credits, net                                               | **197 **                                                                                                                                                     | 61  |
|     Charges                related to pending sale of gas distribution subsidiaries                                    | **167 **                                                                                                                                                     | --  |
|     Other                adjustments to net income                                                                     | **(44)**                                                                                                                                                          | 18  |
|     Changes                in:                                                                                         |                                                                                                                                                              |   |
|         Accounts                receivable                                                         | **(81)**                                                                                                                                                          | (257) |
|         Affiliated                accounts receivables and payable                                 | **(20)**                                                                                                                                                          | 35  |
|         Inventories                                                                                | **280 **                                                                                                                                                     | 163  |
|         Purchased                gas costs, net                                                    | **94 **                                                                                                                                                      | 74  |
|         Accounts                payable                                                            | **(380)**                                                                                                                                                         | (130) |
|         Accrued                interest, payroll and taxes                                         | **38 **                                                                                                                                                      | 151  |
|         Margin                deposit assets and liabilities                                       | **(110)**                                                                                                                                                         | (158) |
|         Deferred                revenues                                                           | **(49)**                                                                                                                                                          | (67) |
|         Other                operating assets and liabilities                                      | **    188 **                                                                                                                             |     112  |
| **            **Net                cash provided by operating activities       | **    441 **                                                                                                                             |     456  |
|                                                                                                                                       |                                                                                                                                                              |   |
| **Investing                Activities**                                                                                                    |                                                                                                                                                              |   |
| Additions                to gas and oil properties, including acquisitions                                                                 | **(438)**                                                                                                                                                         | (351) |
| Plant                construction and other property additions                                                                             | **(86)**                                                                                                                                                          | (67) |
| Acquisition                of business, net of cash acquired                                                                               | **(91)**                                                                                                                                                          |            --  |
| Proceeds                from sales of gas and oil properties                                                                               | **           -- **                                                                                    | 86  |
| Other                                                                                                                                      | **    (16)**                                                                                                                                  |       (5) |
|             Net                cash used in investing activities               | **  (631)**                                                                                                                                             |   (337) |
|                                                                                                                                       |                                                                                                                                                              |   |
| **Financing                Activities**                                                                                                    |                                                                                                                                                              |   |
| Short-term                borrowings from affiliates, net                                                                                  | **213 **                                                                                                                                                     | 126  |
| Issuance                of short-term debt                                                                                                 | **152 **                                                                                                                                                     |            --  |
| Common                dividend payments                                                                                                    | **  (191)**                                                                                                                                             |   (214) |
|             Net                cash provided by (used in) financing activities | **    174 **                                                                                                                             |     (88) |
|                                                                                                                                       |                                                                                                                                                              |   |
| Increase                (decrease) in cash and cash equivalents                                                                            | **(16)**                                                                                                                                                          | 31  |
| Cash                and cash equivalents at beginning of period                                                                            | **     44 **                                                                                                                        |      19  |
| Cash                and cash equivalents at end of period(1)                                                                               | **$   28 **                                                                                                                                   | $   50  |
|                                                                                                                                       |                                                                                                                                                              |   |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note      1.  Nature of Operations**

**Note      2.  Significant Accounting Policies **

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED**
**FINANCIAL      STATEMENTS**

**(Continued)**

**Note      3.  Recently Issued Accounting Standards**

***EITF      04-13***

*Reporting      Revenue Gross as a Principal versus Net as an Agent, *

*Accounting      for Purchases and Sales of Inventory with the Same Counterparty*

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Note      4.  Acquisition **

**Note      5.  Sale of Regulated Gas Distribution Subsidiaries**

|                                                                                                                    |   | **March                31, 2006** |
|-------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|
| **ASSETS**                                                                                                              |   | (millions)                        |
|                                                                                                                    |   |                              |
| **Current                Assets**                                                                                       |   |                              |
| Cash                                                                                                                    |   | **$                4 **      |
| Customer                accounts receivable, net                                                                        |   | **243 **                     |
| Unrecovered                gas costs                                                                                    |   | **59 **                      |
| Other                                                                                                                   |   | **32 **                      |
|           Total                current assets                         |   | **338 **                     |
|                                                                                                                    |   |                              |
| **Property,                Plant and Equipment**                                                                        |   |                              |
| Property,                plant and equipment                                                                            |   | **1,078 **                   |
| Accumulated                depreciation, depletion and amortization                                                     |   | **(379)**                         |
|           Total                property, plant and equipment, net     |   | **699 **                     |
|                                                                                                                    |   |                              |
| **Deferred                Charges and Other Assets**                                                                    |   |                              |
| Regulatory                assets                                                                                        |   | **107 **                     |
| Other                                                                                                                   |   | **8 **                       |
|           Total                deferred charges and other assets      |   | **115 **                     |
|                                                                                                                    |   |                              |
|           Assets                held for sale                         |   | **$                1,152 **  |
|                                                                                                                    |   |                              |
| **LIABILITIES**                                                                                                         |   |                              |
|                                                                                                                    |   |                              |
| **Current                Liabilities**                                                                                  |   |                              |
| Accounts                payable                                                                                         |   | **$                61 **     |
| Provision                for gas inventory replacement                                                                  |   | **52 **                      |
| Payables                to affiliates                                                                                   |   | **30 **                      |
| Accrued                taxes                                                                                            |   | **26 **                      |
| Deferred                income taxes                                                                                    |   | **24 **                      |
| Other                                                                                                                   |   | **37 **                      |
|           Total                current liabilities                    |   | **230 **                     |
|                                                                                                                    |   |                              |
| **Deferred                Credits and Other Liabilities**                                                               |   |                              |
| Asset                retirement obligations                                                                             |   | **32 **                      |
| Deferred                income taxes                                                                                    |   | **160 **                     |
| Regulatory                liabilities                                                                                   |   | **10 **                      |
| Other                                                                                                                   |   | **11 **                      |
|           Total                deferred credits and other liabilities |   | **213**** **                 |
|                                                                                                                    |   |                              |
|           Liabilities                held for sale                    |   | **$                443 **    |

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

|                                             | **Three                Months Ended****       March                31,       ** |
|--------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             | **2006**                                                                                                                                              | 2005 |
|                                             |     (millions)                                                                                                                    |
| Operating                Revenue                 | **$357 **                                                                                                                                        | $316 |
|                                             |                                                                                                                                                  |   |
| Income                (loss) before income taxes | **(128)**                                                                                                                                             | 45 |

*Recognition      of Deferred Tax Assets for a Parent Company's Excess Tax Basis in the Stock      of a      Subsidiary that is Accounted for as a Discontinued Operation. *

*Applying      the Conditions of Paragraph 42 of FASB Statement No. 144 in Determining Whether      to Report Discontinued Operations*
** **

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note      6.  Operating Revenue**

|                                                                                   | **Three                Months****Ended                March 31,** |
|----------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                                   | **2006**                                                          | 2005 |
|                                                                                   | (millions)                                                        |
| Gas                sales:                                                              |                                                              |   |
| Regulated                                                                              | **$   800**                                        | $   778 |
| Nonregulated:                                                                          |                                                              |   |
|      External                customers                        | **618**                                                           | 415 |
|      Affiliated                customers                      | **193**                                                           | 252 |
| Nonregulated                electric sales                                             | **99**                                                            | 77 |
| Other                energy-related commodity sales                                    | **317**                                                           | 144 |
| Gas                transportation and storage                                          | **288**                                                           | 280 |
| Gas                and oil production                                                  | **478**                                                           | 356 |
| Other                                                                                  | **     32**                              |      74 |
|         Total                operating revenue | **$2,825**                                                        | $2,376 |

**Note      7.     Income Taxes **

|                                                                                                                                            | **Three                  Months Ended March 31,** |
|-------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
|                                                                                                                                            | **2006**                                          |   | ** ****2005** |   |
|                                                                                                                                            |                                              |
| U.S.                  statutory rate                                                                                                            | **35.0%**                                         |   | 35.0% |
|                                                                                                                                            |                                              |   |   |
| Increases                  (decreases) resulting from:                                                                                          |                                              |   |   |
|    Employee                  benefits                                                                                            | **(0.5)**                                         |   | (1.3) |
|    State                  taxes, net of federal benefit                                                                          | **3.4 **                                     |   | 2.2  |
|    Other,                  net                                                                                                   | **  (0.1)**                             |   |  0.5  |
|       Subtotal                                                                                                    | **37.8 **                                    |   | 36.4  |
|    Changes                  in valuation allowances                                                                              | **(5.4)**                                         |   | --  |
|    Recognition                  of deferred taxes - stock of     subsidiaries held for                  sale | **23.5 **                                    |   |    --  |
|  Effective                  tax rate                                                                                                       | **55.9%**                                         |   | 36.4% |

*.      *

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Note      8.  Comprehensive Income**

|                                                                                                                                                                                                                                                                                                  | **Three                Months Ended March 31,** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|                                                                                                                                                                                                                                                                                                  | **2006**                                        | 2005 |
|                                                                                                                                                                                                                                                                                                  | (millions)                                      |
| Net                income                                                                                                                                                                                                                                                                             | **$201 **                                  | $287  |
| Other                comprehensive income (loss):                                                                                                                                                                                                                                                     |                                            |   |
|   Net                other comprehensive income (loss) associated with effective portion                of changes in fair value of      derivative cash                flow hedges, net of taxes and amounts reclassified to                earnings(1) |    ** 356 **           |     (662) |
| Total                comprehensive income (loss)                                                                                                                                                                                                                                                      | **$557 **                                  | $(375) |

**Note      9.  Hedge Accounting Activities**

*Accounting      for Derivative Instruments and Hedging Activities*

|                                                                                                                                                   | **Three                Months Ended March 31,** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|
|                                                                                                                                                   | (millions)                                      |
|                                                                                                                                                   | ** ****2006**                              |  2005 |
| Portion                of gains (losses) on hedging instruments determined to be ineffective                and                included in net income: |                                            |   |
|       Fair                value hedges                                                                                   | **$  (1)**                            | $    2  |
|       Cash                flow hedges                                                                                    | **   17 **                  |    (4) |
| Net                ineffectiveness                                                                                                                     | **$ 16 **                             | $  (2) |
|                                                                                                                                                   |                                            |   |
| Portion                of gains on hedging instruments excluded from measurement of effectiveness                and included in net income:           |                                            |   |
| Fair                value hedges                                                                                                                       | **$  1**                              |           $  --  |
|       Cash                flow hedges                                                                                    |    --                            |                    1  |
| Total                                                                                                                                                  | **$  1**                              | $  1  |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

|                              |     AOCIAfter                Tax |  Portion                Expected to beReclassifiedto                EarningsDuring                theNext                12 MonthsAfter                Tax |     MaximumTerm |
|-----------------------------------|------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
|                              | (millions)                                           |                                                                                                                                                            |
| Commodities:                      |                                                 |                                                                                                                                                            |                                |
|      Gas | $   (841)                             | $(480)                                                                                                                                                          | 57                months            |
|      Oil | (570)                                                | (339)                                                                                                                                                           | 33                months            |
| Other                             |         (2)  |         (2)                                                                                                             | 7                months             |
| Interest                Rate      |         (1)  |      -                                                                                                                       | 104                months           |
| Total                             | $(1,414)                                             | $(821)                                                                                                                                                          |                                |

**Note      10.  Ceiling Test **

**Note      11.  Variable Interest Entities**

*Consolidation      of Variable Interest Entities, *

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Note      12.  Significant Financing Transactions **

***Joint      Credit Facilities***

***Other      Credit Facilities***

|  **Facility****Limit** | **Outstanding****Letters                  of****Credit** | **Facility****Capacity****Remaining** |  **Facility****Inception                  Date** |  **Facility****Maturity                  Date** |
|-----------------------------|----------------------------------------------------------|---------------------------------------|-------------------------------------------------------|------------------------------------------------------|
| millions                    |                                                     |                                  |                                                  |
| $100                        | $100                                                     | $---                                  | June                  2004                            | June                  2007                           |
| 100                         | 100                                                      | ---                                   | August                  2004                          | August                  2009                         |
| 150(1)                      | ---                                                      | 150                                   | October                  2004                         | April                  2006                          |
| 200(2)                      | ---                                                      | 200                                   | December                  2005                        | December                  2010                       |
| $550                        | $200                                                     | $350                                  |                                                  |                                                 |

***Securities      Law Reforms***

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Note      13.  Commitments and Contingencies **

***Lease      Commitment***

***Guarantees,      Letters of Credit and Surety Bonds***

|                                            |                |             |
|-------------------------------------------------|---------------------|------------------|
|                                            | **Stated****Limit** | **Value****(1)** |
| (millions)                                      |                |             |
| Subsidiary                debt(2)               | $205                | $205             |
| Offshore                drilling commitments(3) | ---                 | 493              |
| Commodity                transactions(4)        | 1,235               | 795              |
| Miscellaneous                                   | 343                 | 254              |
| Total                subsidiary obligations     | $1,783              | $1,747           |

| (1) | Represents                the estimated portion of the guarantees’ stated limit that is utilized as                of March 31, 2006 based upon prevailing economic conditions and fact                patterns specific to each guarantee arrangement. For those guarantees                related to obligations that are recorded as liabilities by our                subsidiaries, the value includes the recorded amount. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Guarantees                of debt of Dominion Oklahoma Texas Exploration and Production Inc.                (DOTEPI). In the event of default by this subsidiary, we would be                obligated to repay such amounts. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | There                is no stated limit for this                guarantee. |
|-----|----------------------------------------------------------------------------|

| (4) | Guarantees                of contract payments for certain subsidiaries involved in natural                gas and                oil production, natural gas delivery and energy marketing activities.                These guarantees were provided to counterparties in order to facilitate                physical and financial transactions in gas, pipeline capacity,                transportation, oil, electricity and related commodities and services.                If                any of these subsidiaries fail to perform or pay under the contracts                and                the counterparties seek performance or payment, we would be obligated                to                satisfy such obligation. We and our subsidiaries receive similar                guarantees as collateral for credit extended to others. The value                provided                includes certain guarantees that do not have stated limits. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Note      14.  Credit Risk **

**Note      15.  Related Party Transactions**

***Transactions      with Affiliates***

|                                                                          | **Three                Months Ended March 31,** |
|-------------------------------------------------------------------------------|-------------------------------------------------|
|                                                                          | **2006**                                        | 2005 |
|                                                                          | (millions)                                      |
| Sales                of natural gas to affiliates                             | **$193 **                                  | $252 |
| Gas                transportation and storage services provided to affiliates | **5 **                                     | 6 |
| Sales                of electricity to affiliates                             | **4 **                                     | 3 |
| Purchases                of natural gas from affiliates                       | **172 **                                   | 133 |
| Purchases                of electric fuel and energy from affiliates          | **34 **                                    | 45 |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

***Transactions      with Dominion***

**Note      16.  Employee Benefit Plans **

|                                                                             |  **Pension                Benefits** | **Other                Postretirement****Benefits** |
|----------------------------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------|
| **Three                Months Ended March 31,**                                  | **2006**** **                        | 2005                                           | **2006**** ** | 2005  |
|                                                                             | (millions)                                |
|   Service                cost                                          | **$ 3 **                        | $ 3                                       | **$ 4 ** | $ 4  |
|   Interest                cost                                         | **8 **                               | 8                                              | **7 ** | 6  |
|   Expected                return on plan assets                        | ** (26)**                            |  (26)                                          | ** (5)** |  (4) |
|   Curtailment                loss                (1)                   | -                               | -                                         | **3 ** | -   |
|   Amortization                of transition obligation                 | -                               | -                                         | **1 ** | 1  |
|   Amortization                of prior service credit                  |     -       |     -                 | ** (1)** | -   |
|   Amortization                of net loss                              | **    -  ** |     -                 | **3**** ** | 1  |
|   Net                periodic benefit cost (credit)                    | **$(15)**                                 | $(15)                                               | **$12 ** | $ 8  |
|                                                                             |                                      |                                                |   |   |
|   Company’s                net periodic benefit cost (credit)(2) | **$(27)**                                 | $(25)                                               | **$19 ** | $12  |
|                                                                             |                                      |                                                |   |   |

| (1) | Relates                to the pending sale of Peoples and Hope discussed in Note                5. |
|-----|----------------------------------------------------------------------------------------------------|

| (2) |  Amounts                represent all benefit plans in which we participate, including benefit                plans covering multiple Dominion                 subsidiaries. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Employer      Contributions**

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Note      17.  Condensed Consolidating Financial      Information**

|  Three                Months Ended March 31, 2006 |  CNG                (Parent Company)               |   DOTEPI             |  Other                Subsidiaries                | Adjustments                & Eliminations |   Consolidated                               |
|--------------------------------------------------------|---------------------------------------------------------|--------------------------------|--------------------------------------------------------|-----------------------------------------------|--------------------------------------------------------|
|                                                   | (millions)                                              |
|                                                   |                                                    |                           |                                                   |                                          |                                                   |
| Operating                revenue                       | **$     --   ** | **$181**                       | **$2,815**                                             | **$(171)**                                    | **$2,825**                                             |
| Operating                expense                       | **    1 **                     | **  136**            | ** 2,327**                                        | ** (157)**                               | ** 2,307**                                        |
| Income                from operations                  | **(1)**                                                 | **45**                         | **488**                                                | **(14)**                                      | **518**                                                |
| Other                income                            | **60 **                                            | **--  **             | **5**                                                  | **(60)**                                      | **5**                                                  |
| Interest                and related charges            | **   53 **                          | **  14**             | **    62**                         | **   (61)**                    | **   68**                               |
| Income                before income taxes              | **6 **                                             | **31**                         | **431**                                                | **(13)**                                      | **455**                                                |
| Income                tax expense                      | **109 **                                           | **16**                         | **135**                                                | **(6)**                                       | **254**                                                |
| Equity                in earnings of subsidiaries      | ** 304 **                                     | **  --  ** | **      --  ** | **  (304)**                         | **      --  ** |
| Net                income                              | **$201 **                                          | **$  15**            | **$  296**                                   | **$(311)**                                    | **$  201**                                   |

|  Three                Months Ended March 31, 2005 |  CNG                (Parent Company)     |   DOTEPI               |  Other                Subsidiaries            | Adjustments                & Eliminations |   Consolidated               |
|--------------------------------------------------------|-----------------------------------------------|----------------------------------|----------------------------------------------------|-----------------------------------------------|----------------------------------------|
|                                                   | (millions)                                    |
|                                                   |                                          |                             |                                               |                                          |                                   |
| Operating                revenue                       | $    --    | $176                             | $2,334                                             | $(134)                                        | $2,376                                 |
| Operating                expense                       |    --           |    102            | 1,905                                              | (132)                                         |  1,875                            |
| Income                from operations                  | --                             | 74                               | 429                                                | (2)                                           | 501                                    |
| Other                income                            | 49                                       | --                          | 3                                                  | (49)                                          | 3                                      |
| Interest                and related charges            |    52                     |    15             |    35                               |    (50)                        |    52                   |
| Income                (loss) before income taxes       | (3)                                           | 59                               | 397                                                | (1)                                           | 452                                    |
| Income                tax expense (benefit)            | (2)                                           | 20                               | 148                                                | (1)                                           | 165                                    |
| Equity                in earnings of subsidiaries      |  288                                |    --   |       --   |   (288)                             |     --   |
| Net                income                              | $287                                     | $  39                  | $  249                                   | $(288)                                        | $  287                       |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Condensed      Consolidating Balance Sheet Information**

|  At                March 31, 2006                                                             |  CNG                (Parent Company) |   DOTEPI                    |  Other                Subsidiaries | Adjustments                & Eliminations |   Consolidated    |
|----------------------------------------------------------------------------------------------------|-------------------------------------------|---------------------------------------|-----------------------------------------|-----------------------------------------------|-----------------------------|
|                                                                                               | (millions)                                |
| **Assets**                                                                                         |                                      |                                  |                                    |                                          |                        |
| Current                assets                                                                      | **$2,229**                                | **$ 419**                        | **$5,581**                              | **$(2,856)**                                  | **$5,373**                  |
| Investment                in affiliates                                                            | **4,166**                                 | **--  **                    | **156**                                 | **(4,104)**                                   | **218**                     |
| Loan                to affiliates                                                                  | **2,188**                                 | **--  **                    | **--  **                      | **(2,188)**                                   | **--  **          |
| Property,                plant and equipment, net                                                  | **--  **                        | **4,335**                             | **8,556**                               | **(798)**                                     | **12,093**                  |
| Deferred                charges and other assets                                                   | **     277**     | **     561** | **   2,908**             | **    (509)**             | **   3,237** |
|      Total                assets                                          | **$8,860**                                | **$5,315**                            | **$17,201**                             | **$ (10,455)**                           | **$20,921**                 |
|                                                                                               |                                      |                                  |                                    |                                          |                        |
| **Liabilities                & Shareholder’s Equity**                                    |                                      |                                  |                                    |                                          |                        |
| Current                liabilities                                                                 | **$  1,333**                    | **$2,600**                            | **$8,955**                              | **$ (4,530)**                            | **$8,358**                  |
| Long-term                debt                                                                      | **2,506**                                 | **198**                               | **--  **                      | **--   **                      | **2,704**                   |
| Notes                payable to affiliates                                                         | **206**                                   | **--  **                    | **1,099**                               | **(1,099)**                                   | **206**                     |
| Deferred                credits and other liabilities                                              | **158**                                   | **1,214**                             | **4,290**                               | **(666)**                                     | **4,996**                   |
| Common                shareholder’s equity                                                   | **  4,657**                     | **   1,303**           | **2,857**                               | **(4,160)**                                   | **  4,657**       |
|      Total                liabilities and shareholder’s equity |  **$8,860**                          |  **$5,315**                      |  **$17,201**                       |  **$(10,455) **                     |  **$20,921**           |

|  At                December 31, 2005                                                          |  CNG                (Parent Company) |   DOTEPI          |  Other                Subsidiaries | Adjustments                & Eliminations |   Consolidated |
|----------------------------------------------------------------------------------------------------|-------------------------------------------|-----------------------------|-----------------------------------------|-----------------------------------------------|--------------------------|
|                                                                                               | (millions)                                |
| **Assets**                                                                                         |                                      |                        |                                    |                                          |                     |
| Current                assets                                                                      | $2,019                                    | $   539      | $6,529                                  | $(3,659)                                      | $5,428                   |
| Investment                in affiliates                                                            | 3,697                                     | --                | 147                                     | (3,634)                                       | 210                      |
| Loan                to affiliates                                                                  | 2,188                                     | --                | --                            | (2,188)                                       | --             |
| Property,                plant and equipment, net                                                  | --                              | 4,079                       | 8,370                                   | (103)                                         | 12,346                   |
| Deferred                charges and other assets                                                   |     373               |     555 |   3,621                       |     (631)                 |    3,918  |
|      Total                assets                                          | $8,277                                    | $5,173                      | $18,667                                 | $(10,215)                                     | $21,902                  |
|                                                                                               |                                      |                        |                                    |                                          |                     |
| **Liabilities                & Shareholder’s Equity**                                    |                                      |                        |                                    |                                          |                     |
| Current                liabilities                                                                 | $ 1,026                              | $2,646                      | $9,976                                  | $(4,746)                                      | $8,902                   |
| Long-term                debt                                                                      | 2,508                                     | 200                         | --                            | --                             | 2,708                    |
| Notes                payable to affiliates                                                         | 206                                       | --                | 1,099                                   | (1,099)                                       | 206                      |
| Deferred                credits and other liabilities                                              | 246                                       | 1,231                       | 5,004                                   | (686)                                         | 5,795                    |
| Common                shareholder’s equity                                                   |   4,291                         |   1,096           |    2,588                 |   (3,684)                           |    4,291  |
|      Total                liabilities and shareholder’s equity |  $8,277                              |  $5,173                |  $18,667                           |  $(10,215)                               |  $21,902            |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

**Condensed      Consolidating Statement of Cash Flow Information**

|  Three                Months Ended March 31, 2006                  |  CNG                (Parent Company) |   DOTEPI   |  Other                Subsidiaries | Adjustments                & Eliminations |   Consolidated |
|-------------------------------------------------------------------------|-------------------------------------------|----------------------|-----------------------------------------|-----------------------------------------------|--------------------------|
|                                                                    | (millions)                                |
| Net                cash provided by operating activities           |  **$204 **                      |  **$208 ** |  **$220 **                    |  **$(191)**                              |  **$441 **     |
| Net                cash used in investing activities               |  **(165)**                           |  **(297)**      |  **(432)**                         |  **263 **                           |  **(631)**          |
| Net                cash provided by (used in) financing activities |  **(40)**                            |  **87 **   |  **199 **                     |  **(72)**                                |  **174 **      |

|  Three                Months Ended March 31, 2005                  |  CNG                (Parent Company) |   DOTEPI |  Other                Subsidiaries | Adjustments                & Eliminations |   Consolidated |
|-------------------------------------------------------------------------|-------------------------------------------|--------------------|-----------------------------------------|-----------------------------------------------|--------------------------|
|                                                                    | (millions)                                |
| Net                cash provided by operating activities           |  $236                           |  $50     |  $378                         |  $(208)                                  |  $456          |
| Net                cash used in investing activities               |  (22)                                |  (138)        |  (185)                             |  8                                  |  (337)              |
| Net                cash provided by (used in) financing activities |  (214)                               |  84      |  (158)                             |  200                                |  (88)               |

**Note      18.  Operating Segments**

***Delivery***
*Accounting      for the Effects of Certain Types of*
*Regulation*

***Energy***

***E&P***

***Corporate***
*** ***

**CONSOLIDATED      NATURAL GAS COMPANY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Continued)**

|                                                 |   Delivery                                  |   Energy |   E&P |   Corporate |   Eliminations       |  ConsolidatedTotal                         |
|------------------------------------------------------|-------------------------------------------------------|--------------------|---------------------|-----------------------|--------------------------------|-------------------------------------------------|
|                                                 | (millions)                                            |
| Three                  Months ended March 31, 2006   |                                                  |               |                |                  |                           |                                            |
| Operating                  revenue:                  |                                                  |               |                |                  |                           |                                            |
| External                  customers                  | **$1,385**                                            | **$428**           | **$810**            | **$ —**    | **$ —  ** | **$2,623**                                      |
| Affiliated                  customers                | **—  **                               | **195**            | **3**               | **4**                 | **—  **        | **202**                                         |
| Intersegment                                         | **        1** | **  90** | **  53**  | **—**           | **(144)**                      | **    —  ** |
|   Total                  operating revenue | **1,386**                                             | **713**            | **866**             | **4**                 | **(144)**                      | **2,825**                                       |
| Net                  income (loss)                   | **85**                                                | ** 88**       | **213**             | **(185)**             | **—  **        | **201**                                         |
|                                                 |                                                  |               |                |                  |                           |                                            |
| Three                  Months ended March 31, 2005   |                                                  |               |                |                  |                           |                                            |
| Operating                  revenue:                  |                                                  |               |                |                  |                           |                                            |
| External                  customers                  | $1,234                                                | $315               | $566                | $ —        | $ —       | $2,115                                          |
| Affiliated                  customers                | --                                                    | 248                | 9                   | 4                     | —              | 261                                             |
| Intersegment                                         |     16                            |   60     |   34      | —               | (110)                          |     —       |
|   Total                  operating revenue | 1,250                                                 | 623                | 609                 | 4                     | (110)                          | 2,376                                           |
| Net                  income (loss)                   | 104                                                   |  80           | 104                 | (1)                   | —              | 287                                             |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**RESULTS      OF OPERATIONS**

**Contents      of MD&A **

| · | Forward-Looking                Statements |
|--------|-------------------------------------------|

| · | Accounting                Matters |
|--------|-----------------------------------|

| · | Results                of Operations |
|--------|--------------------------------------|

| · | Segment                Results of Operations |
|--------|----------------------------------------------|

| · | Credit                Risk |
|--------|----------------------------|

| · | Other                Matters |
|--------|------------------------------|

**Forward-Looking      Statements **

|   | · | Unusual                weather conditions and their effect on energy sales to customers                and                energy commodity prices; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Extreme                weather events, including hurricanes and winter storms, that can                cause                outages, production delays and property damage to our                facilities; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | State                and federal legislative and regulatory developments, including                deregulation and changes in environmental and other laws and regulations                to which we are subject; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cost                of environmental compliance; |
|--------|--------|--------------------------------------------------|

|   | · | Fluctuations                in energy-related commodity prices and the effect these could have                on our                   earnings, liquidity position and the underlying value of our                assets; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Counterparty                credit risk; |
|--------|--------|------------------------------------------|

|   | · | Capital                market conditions, including price risk due to marketable securities                held                as investments in benefit plan                trusts; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Fluctuations                in interest rates; |
|--------|--------|------------------------------------------------|

|   | · | Change                in rating agency requirements or credit ratings and the effect on                availability and cost of capital; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Changes                in financial or regulatory accounting principles or policies imposed                by                governing bodies; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Employee                workforce factors including collective bargaining agreements and                labor                negotiations with union employees; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                risks of operating businesses in regulated industries that are subject                to                changing regulatory structures; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Changes                in our ability to recover investments made under traditional regulation                through rates; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Receipt                of approvals for and timing of closing dates for acquisitions and                divestitures; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Realization                of expected business interruption insurance proceeds and decreased                availability of business interruption insurance on commercially reasonable                terms; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Political                and economic conditions, including the threat of domestic terrorism,                inflation and deflation. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

**Accounting      Matters **

**Critical      Accounting Policies and Estimates **

**Other**

***EITF      04-13***

***Accounting      for Pensions and Other Postretirement Benefits***

*Employer’s      Accounting for Defined Benefit Pension and Other Postretirement Plans, an      amendment of FASB Statements No. 87, 88, 106 and 132(R)*

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

**Results      of Operations**

| **First                Quarter**      | **2006**** ** |                                        2005 | $                Change  |
|---------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
| (millions)                            |               |
|   Net                Income | **$201**           | $287                                                                                                                                                           | $(86)                         |

**Overview      **

**Analysis      of Consolidated Operations **

| **First                Quarter**                        | **2006**               | 2005               | $                Change |
|---------------------------------------------------------|------------------------|--------------------|-------------------------|
| (millions)                                              |                   |               |                    |
|                                                    |                   |               |                    |
| Operating                Revenue                        | **$  2,825** | $  2,376 | $  449   |
|                                                    |                   |               |                    |
| Operating                Expenses                       |                   |               |                    |
| Purchased                gas                       | **1,350**              | 1,175              | 175                |
| Electric                fuel and energy purchases       | **65**                 | 72                 | (7)                     |
| Other                energy-related commodity purchases | **226**                | 89                 | 137                |
| Other                operations and maintenance         | **349**                | 283                | 66                 |
| Depreciation,                depletion and amortization | **218**                | 166                | 52                 |
| Other                taxes                              | **99**                 | 90                 | 9                  |
|                                                    |                   |               |                    |
| Other                income                             | **5**                  | 3                  | 2                  |
| Interest                and related charges             | **68**                 | 52                 | 16                 |
| Income                tax expense                       | **254**                | 165                | 89                 |

**Operating      Revenue **

| · | A                $173 million increase in other energy-related commodity sales resulting                from a $138 million increase in sales of purchased oil under buy/sell                arrangements by exploration and production operations due to higher                oil                prices ($48 million) and increased sales volumes ($90 million) and                a $27                million increase in sales of extracted products, primarily due to                a                contractual change for a portion of our gas production processed                by third                parties. We now take title to and market the natural gas liquids                extracted                from this gas; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                $144 million increase in nonregulated gas sales revenue largely reflecting                a $52 million increase from gas aggregation activities, due to higher                prices ($135 million), partially offset by lower volumes ($83 million)                and                a $102 million increase from nonregulated retail energy marketing                activities due to higher prices for contract sales. These increases                were                largely offset by a corresponding increase in *Purchased                gas expense*; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

| · | A                $122 million increase in gas and oil production*** ***revenue                reflecting a $93 million increase in sales of oil production due                to higher                volumes ($74 million) and increased prices ($19 million) and a $28                million                increase in gas production primarily due to higher average realized                prices; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                $22 million increase in nonregulated electric sales primarily resulting                from increased revenue from nonregulated retail energy marketing                operations due to higher customer contract sales rates; partially                offset                by |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                $42 million decrease in other revenues largely attributable to the                absence                of business interruption insurance revenue recognized in 2005 associated                with Hurricane Ivan. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Operating      Expenses and Other Items **

***Purchased      gas expense***
* *
*Operating      Revenue*

***Electric      fuel and energy purchases expense***

***Other      energy-related commodity purchases***
***expense***
*Operating      Revenue*

***Other      operations and maintenance expense***

| · | A                $27 million increase attributable to higher production and transportation                costs related to gas and oil                production; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                $25 million increase in expenses for regulated gas operations related                to                low income home energy assistance programs. These expenditures are                recovered through rates and do not impact our net income;                and |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                $15 million increase in insurance costs for exploration and production                operations due primarily to insurance premium loss adjustments incurred                following the 2005 hurricanes; partially offset                by |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A                $118 million benefit resulting from favorable price changes in the                fair                value of certain gas and oil derivatives that were de-designated                as hedges                following the 2005 hurricanes; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                impact of a $49 million loss recognized in 2005 reflecting the                discontinuance of hedge accounting for certain oil derivatives primarily                resulting from a delay in reaching anticipated production levels                in the                Gulf of Mexico, and subsequent changes in the fair value of those                hedges. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Depreciation,      depletion and amortization expense***

***Other      taxes***

***Interest      and related charges***

***Income      tax***
***expense***

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

**Segment      Results of Operations **

|                                      |                      |                        |
|-------------------------------------------|---------------------------|-----------------------------|
| **First                Quarter**          | **2006**                  | 2005                        | $                Change |
|                                      | (millions)                |                        |
| Delivery                                  | **$85 **             | $104                   | $(19) |
| Energy                                    | **88 **              | 80                     | 8  |
| E&P                                   | **  213 ** |   104        |   109  |
| Primary                operating segments | **386 **             | 288                    | 98  |
|                                      |                      |                        |   |
| Corporate                                 | ** (185)**           |     (1) | (184) |
| Consolidated                              | **$201 **            | $287                   | $(86)  |

**Delivery      **

| **First                Quarter**                                        | **2006 ** | 2005  | %                Change |
|-------------------------------------------------------------------------|----------------|------------|-------------------------|
| Gas                throughput (bcf):                                    |           |       |                    |
| ** ** Gas                sales                                | **50**         | 63         | (21)%                   |
|   Gas                transportation                           | **87**         | 92         | (5)                     |
| Heating                degree days (gas service area) (1)               | **2,580**      | 3,022      | (15)                    |
| Gas                delivery customer accounts(2):                       |           |       |                    |
|   Gas                sales                                    | **996**        | 1,071      | (7)                     |
|   Gas                transportation                           | **704**        | 635        | 11                 |
| Unregulated                retail energy marketing customer accounts(2) | **1,199**      | 1,131      | 6                  |

| (1) | Heating                degree days are the differences between the average temperature for                each                day and 65 degrees, when the average temperature is less than 65                degrees. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                              | **First                Quarter****2006                vs. 2005 ****Increase **** (Decrease)** |
|-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                                              |
|                                                              |
|                                                              | (millions)                                                                                                   |
| Weather                                                           | $ (12)                                                                                                  |
| Other                margins(1)                                   |   (9)                                                                                              |
| Interest                expense                                   | (6)                                                                                                          |
| Nonregulated                retail energy marketing operations(2) |    6                                                                                          |
| Other                                                             |                  2                                                                                      |
| Change                in net income contribution                  | $ (19)                                                                                                  |

| (1) | Reflects                reduced customer usage, due in part to sensitivity to rising gas                prices. |
|-----|-----------------------------------------------------------------------------------------------------------------|

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

**Energy      **

| **First                Quarter**                    | **2006 ** | 2005  | %                Change |
|-----------------------------------------------------|----------------|------------|-------------------------|
|   Gas                sales (bcf)          | **50**         | 61         | (18)%                   |
|   Gas                transportation (bcf) | **234**        | 301        | (22)                    |

|                                               | **First                Quarter****2006                vs. 2005 ****Increase **** (Decrease)** |
|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                               |
|                                               |
|                                               | (millions)                                                                                                   |
| Producer                services(1)                | $ 14                                                                                               |
| Gas                transmission rate settlement(2) | (9)                                                                                                          |
| Other                                              |    3                                                                                     |
| Change                in net income contribution   |  $8                                                                                                |

| (1) | Higher                gains resulting from the impact of favorable price changes on gas                marketing activities associated with certain contractual                assets. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents                lower natural gas transportation and storage revenues as a result                of a                rate settlement that went into effect July 1,                2005. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**E&P      **

| **First                Quarter**                               | **2006 ** | 2005  | %                Change |
|----------------------------------------------------------------|----------------|------------|-------------------------|
| Gas                production (bcf)                       | **60.9**       | 60.1       | 1%                      |
| Oil                production (million bbls)                   | **5.7**        | 3.5        | 63                      |
| Average                realized prices with hedging results    |           |       |                    |
|   Gas                (per mcf) (1)              | **$5.43**      | $4.31      | 26                      |
|   Oil                (per bbl)                       | **38.56**      | 28.48      | 35                      |
| Average                realized prices without hedging results |           |       |                    |
|   Gas                (per mcf) (1)              | **8.10**       | 6.26       | 29                      |
|   Oil                (per bbl)                       | **53.90**      | 45.44      | 19                      |
| DD&A                (unit of production rate per mcfe)     | **1.76**       | 1.47       | 20                      |

| (1) | Excludes                $49 million and $67 million of revenue recognized in the first quarter                of                2006 and 2005, respectively, under the volumetric production payment                (VPP)                agreements described in Note 10 to the Consolidated Financial Statements                in our Annual Report on Form 10-K for the year ended December 31,                2005. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

|                                                  | **First                Quarter****2006                vs. 2005 ****Increase **** (Decrease)** |
|-------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                                  |
|                                                  |
|                                                  | (millions)                                                                                                   |
|                                                  |                                                                                                         |
| Operations                and maintenance (1)         | $85                                                                                                     |
| Gas                and oil—prices               | 59                                                                                                      |
| Gas                and oil—production(2)        | 50                                                                                                      |
| DD&A                                              | (34)                                                                                                         |
| Business                interruption insurance        | (28)                                                                                                         |
| Interest                expense                       | (12)                                                                                                         |
| Change                in state income tax estimate(3) |   (11)                                                                                             |
| Change                in net income contribution      | $ 109                                                                                              |

| (1) | Lower                operations and maintenance expenses, primarily reflecting the impact                of                favorable changes in the fair value of certain gas and oil derivatives                that were de-designated as hedges following the 2005 hurricanes,                partially                offset by increased production                costs. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents                an increase in oil production primarily resulting from deepwater                oil                production at the Gulf of Mexico Devils Tower, Triton and Goldfinger                projects. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Reflects                increased income tax expense largely due to the effect of a revision                to                estimated state income tax apportionment percentages on accumulated                deferred income taxes during the first quarter of                2006. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                              |                                                        |                                            |                                                        |
|--------|-----------------------------------|-------------------------------------------------------------|-------------------------------------------------|-------------------------------------------------------------|
|   | **Natural                Gas**    | **Oil**                                                     |
| Year   | **Hedged****production****(bcf)** | **Average****hedge price****(per                mcf)** | **Hedged****production****(million bbls)** | **Average****hedge price****(per                bbl)** |
| 2006   | 147.5                             | $4.64                                                       | 10.4                                            | $25.05                                                      |
| 2007   | 189.7                             | 5.77                                                        | 10.0                                            | 33.41                                                       |
| 2008   | 106.7                             | 7.78                                                        | 5.0                                             | 49.36                                                       |

**Corporate      **

|                                          | **First                Quarter** |                  |
|-----------------------------------------------|----------------------------------|-----------------------|
|                                          | **2006**                         | 2005                  | Change |
| (millions)                                    |                             |                  |
| Specific                items attributable to |                             |                  |   |
| operating                segments             | **$(106) **                 | $--                   | $(106) |
| Other                corporate operations     | **  (79) **       |   (1)  |                              (78)  |
| Total                net expense              | **$(185) **                 | $(1)             | $(184)  |

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

***Specific      Items Attributable to Operating Segments***
** **

***Other      Corporate Operations***

*.      *

**Credit      Risk**

|                                                                                        | **Gross****Credit                Exposure** |
|---------------------------------------------------------------------------------------------|---------------------------------------------|
|                                                                                        | (millions)                                  |
| Investment                grade(1)                                                          | **$433**                                    |
| Non-investment                grade(2)                                                      | **19**                                      |
| No                external ratings:                                                         |                                        |
|      Internally                rated—investment grade(3)     | **21**                                      |
|      Internally                rated—non-investment grade(4) | **  145**                         |
|          Total                                 | **$618**                                    |

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF **

**RESULTS      OF OPERATIONS**

**(Continued)**

**Other      Matters**

***Future      Environmental Regulations***

***Minimum      Service Standards***

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**ITEM      4. CONTROLS AND PROCEDURES**

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**PART      II. OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

*Other      Matters*

**ITEM      1A. RISK FACTORS**

*Forward-Looking      Statements*

**Changing      rating agency requirements could negatively affect our growth and business      strategy.**

**CONSOLIDATED      NATURAL GAS COMPANY**

**PART      II. OTHER INFORMATION**

**(Continued)**

**ITEM      1A. RISK FACTORS**

**(Continued)**

**Our      exploration and production business is dependent on factors that cannot be      predicted or controlled and that could**
**damage      facilities, disrupt production or reduce the book value of our      assets.**

----

**CONSOLIDATED      NATURAL GAS COMPANY**

**PART      II. OTHER INFORMATION**

**(Continued)**

**ITEM      6. EXHIBITS**

| **(a)                  Exhibits:** |
|------------------------------------|
|                               |
|                               | 3.1 | Certificate                  of Incorporation of Consolidated Natural Gas Company (Exhibit (3A)(i)                  to                  Form 10-K for the fiscal year ended December 31, 1999, File No.                  1-3196,                  incorporated by reference). |
|                               | 3.2 | Certificate                  of Amendment of Certificate of Incorporation, dated January 28,                  2000                  (Exhibit (3A)(ii) to Form 10-K for the fiscal year ended December                  31,                  1999, File No. 1-3196, incorporated by reference). |
|                               | 3.3 | Bylaws                  as in effect on December 15, 2000 (Exhibit 3B to Form 10-K for                  the fiscal                  year ended December 31, 2000, File No. 1-3196, incorporated by                  reference). |
|                               | 4 | Consolidated                  Natural Gas Company agrees to furnish to the Securities and Exchange                  Commission upon request any other instrument with respect to long-term                  debt as to which the total amount of securities authorized does                  not exceed                  10% of its total consolidated assets. |
|                               | 10.1 | $3.0                  billion Five-Year Credit Agreement dated February 28, 2006 among                  Dominion                  Resources, Inc., Virginia Electric and Power Company, Consolidated                  Natural                  Gas Company, JPMorgan Chase Bank, N.A., as Administrative Agent,                  Citibank,                  N.A., as Syndication Agent and Barclays Bank PLC, The Bank of Nova                  Scotia                  and Wachovia Bank, National Association, as Co-Documentation Agents                  and                  other lenders named therein. (Exhibit 10.1, Form 8-K filed March                  3, 2006,                  File No. 1-3196, incorporated by reference). |
|                               | 10.2 | $1.70                  billion Amended and Restated Five-Year Credit Agreement dated February                  28,                  2006 among Consolidated National Gas Company, Barclays Bank PLC,                  as                  Administrative Agent, Barclays Bank PLC and KeyBank National Association,                  as Syndication Agents and SunTrust Bank, The Bank of Nova Scotia                  and ABN                  AMRO Bank N.V., as Co-Documentation Agents and other lenders as                  named                  therein. (Exhibit 10.2, Form 8-K filed March 3, 2006, File No.                  1-3196,                  incorporated by reference). |
|                               | 10.3 | $1.05                  billion 364-Day Credit Agreement dated February 28, 2006 among                  Consolidated Natural Gas Company, Barclays Bank PLC, as Administrative                  Agent, Barclays Bank PLC and KeyBank National Association, as Syndication                  Agents, The Bank of Nova Scotia, The Bank of Tokyo-Mitsubishi UFJ,                  Ltd.,                  New York Branch and Mizuho Corporate Bank, Ltd., as Co-Documentation                  Agents and other lenders as named therein. (Exhibit 10.3, Form                  8-K filed                  March 3, 2006, File No. 1-3196, incorporated by                  reference). |
|                               | 12 | Ratio                  of earnings to fixed charges (filed herewith). |
|                               | 31.1 | Certification                  by Registrant’s Chief Executive Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002 (filed herewith). |
|                               | 31.2 | Certification                  by Registrant’s Chief Financial Officer pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002 (filed herewith). |
|                               | 32 | Certification                  to the Securities and Exchange Commission by Registrant’s Chief Executive                  Officer and Chief Financial Officer, as required by Section 906                  of the                  Sarbanes-Oxley Act of 2002 (filed herewith). |
|                               | 99 | Condensed                  consolidated earnings statements (unaudited) (filed                  herewith). |

----

**SIGNATURE**

|                       | **CONSOLIDATED                NATURAL GAS COMPANY**Registrant                                                                                                                                                                                                                                            |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                     |
| May                3, 2006 |                   /s/                Steven A.                Rogers                        |
|                       | Steven                A. RogersSenior                Vice President and Controller(Principal                Accounting Officer)                                                                                                                                                                          |
|                       |                                                                                                                                                                                                                                                                                                     |