Columbia Gas Transmission, LLC FERC NGA Gas Tariff

Baseline Tariffs Proposed Effective Date: May 1, 2018

Service Agreement No. 139085 – Virginia Power Services Energy Corp., Inc. Option Code A

NTS SERVICE AGREEMENT

Service Agreement No. J 39085 Revision No. l

THJS A GREENIBNT, made and entered into this d 1 ~y of ~_n_~~----' 2018, by and between COLUMillA GAS TRANSMISSION, LLC ("T~r") au VIllGINIA POWER SERVICES ENERGY CORP., INC. ("Shipper").

WITNESSETH: That Shipper and Transporter have executed that certain Warren County Expansion Project Anchor Shipper Precedent Agreement, dated September l 4, 20 LO, as amended and restated effective November 30, 20 L2 ('Precedent Agreement"), coverjng the construction of facilities necessary to provide the service contemplated in this Service Agreement; ("Facilities"); and

WITNESS ETH: that this Service Agreement js inleuded lo serve the natural gas needs of a power plant to be constructed by Shipper's affiliate, Virginia Electric and Power Company ("Virginia Power" or "VEPCO"), in Warren County, Virginia (the "Plant"); and

WlTNESSE'l1-f: That in consideration of the mulual covenants herein contained, the parties hereto agree as follows:

Section !. Service to be Rendcrcc[. Transporter shall perform and Shipper sha ll receive serv ice in accordance with the provisions of the effective NTS Rate Schedule and applicab le General Terms and Conditions of Transporter's FERC Gas Tariff~ Fourth Revised Volume No. I ("Tariff'), on file with the Federal Energy Regulatory Commission (Commission), as the snme may be amended or superseded in accordnt1ce with the mies and regulations of the Commission. The maximum obligation of Trnnsporter to deliver gas hereunder to or for Shipper, the designation of the points of delivery at which Tnmsporter shall deliver or cause gas to be delivered to or for Shipper, anti the points of receipt at which Shipper shall delivei: or cause gas to be deli vered, are specified in Appendix A, as the same may be amended from time to time by agreement between Shipper and Transporter, or in accordance with the rnles and regulations of the Commission.

Section 2. Term. Service under this Agreement shall commence as of May l, 2018, and shall continue in full force and effect unti l April 14, 2034. Pre-granted abandonment shall apply upon termination of this Agreement, subject to any right of first refusal Shipper may have under the Commission's regulations and Transporter's Tariff:

Section 3. Rates. Shipper shall pay Transporter the charges and furnish Retainage as described in the ahove-referenced Rate Schedule, unless otherwise agreed to by the parties in writing and specified as an amendment to this Service Agreement or unless as provided in Sections 3(a) tlu·ough 3(h) below. Trans11orter mny agree to discount its rate to Shipper below Transporter's maximum rate, but not Jess than Transporter's minimum i·ate. Such discounted rate may a1Jply to: (a) specified quantities (contract demand or commodity quantities); (b) specified quantities above or below a certain level or all quantities if quantities exceed a certain level; ( c) quantities

during specified time periods; (d) quantities at specified points, locations, or other defined geographical areas; (e) that a specified discounted rate will apply in a specified relationsliip to !he quantiti es actually transported (i .e., that the reservation charge will be adjusted in a specified relationship to quanti ties actually transported). In addition, the discount agreement may include a provision that if one rate component which was at or below the applicable maximum rate at the time the discount agreement was executed subsequently exceeds the apjllicable maximum rate due to a change in Transporter's maximum rate so that such rate component must be adjusted downward to equal the new applicable maximum rate, then other rate components may be adjusted upward lo achieve the agreed overall rate, so long as none of the resulting rate components exceed the maximum rate applicable to that rate component. Such changes to rate components sha ll be applied prospectively, commencing with the date a Commission order accepts rev ised tariff sheets. However, nothjug co11tained herein shall be construed to alter a refund ob li gation under applicable law for any period during wl1ich rates which had been charged under a discount agreement exceeded rates which ultimately are found to be just and reasonable.

(a) On September 4, 20 12, in Docket No. RP12- l021, Transporter fi led with FERC for approval of its proposed Stipulation and Agreement or Settlement ("Stipu lation") to recover some or all of its proposed system modern ization costs through a mechani sm known as the Capital Cost Recovery Meclumism ("CCRM"). The Stipulation was approved 011January24, 2013 and requires Transporter to file a Section 4 rate case on or before Febrnary 1, 2019 ("Section 4 Rate Case"), which may affect the CCRivl rnedianjsm !hereafter. The rates applicable to service under this Scrv ice Agreement slia 11 be negotiated rates as fo llows.

(b) Except as may be discounted as described in Section (g) below, the demand charges for NTS service wi II be fi xed negotiated rates equal to the maximum recourse daily cqu ivalcnt rates in effect on August 14, 20 l 2 (i.e., $0.2335 *) ("rates") fo r an ' 'Tnitial Period" described below. For purposes of the anticipated annual CCRM ca lculation, these fixed rates shall assume the foll cost responsibility assoc iated with any CCRM with the remainder of the fixed rates attributed to the base rates.

(c) The Initial Period shall start on the Service Commencement Date under this Service Agreement. The Initial Period shall end 011 April 15, 20 19, provided, however, that if Shipper delays start of this Service Agreement payments under the terms of Section 4(b)(l) of the Precedeut Agreement, the end of the Initial Period shall be extended to July 15, 20 L9.

(d) Sixty (GO) days before the end of the Initial Period, Shipper shall have the unilateral right to elect in writing one of the rate options below, which rates will then apply starling immediately upon the end of the Initial Period and continuing through the end of the 20-year contract term.

l . Adopt recomse rate treatment; 2. Adopt negotiated rates fixed for the remaining term of this Service Agreement

equal to the recourse rates that will be established in the Section 4 Rate Case contemplated by the Stipulation, whether those rates are as a result of settlement or litigation. In the event that rates are not final at the time of Shipper's election, Shipper shall pay recourse rates subject to refund until final rate are established. Such final rates will be made effective retroactively for Shipper to the first day following the end of the Initial Period .

Notwithstanding the foregoing, if the CCRM or a sim ilar mechan.ism in I ended to recover costs covered by the CCRi\!1 is continued as pmt of ~my resolution of the Scctio11 4 Rate Case, the fixed rate shall bt: established as set fo1th in paragraph d)2.A. below. A. In the event that there is no Section 4 Rale Case due to a settlement between Transporter rind its customers that eliminates the filing requirements contemplated in the Stipulation, then on the date that the FERC approves the settlement, the negotiated rate fixed for the remaining term of tbis Service Agreement will be as fo !lows: (i) if the CCR1'vl or a similar mechanism intended to recover costs covered by the CCRNI does not continue under that settlement, negotiated rates fixed for tile remaining term of this Service Agreement equal to the NTS recourse rates that are actuall y implemented in such settlement, or (i i) if the CCRM or a similar mechanism intended to recover costs covered by the CCfu'vl is continued as part of the settlement, to the extenl necessary, the fixed negotiated rates shall be re-cal cu lated using the achrnl settlement rates adjusted to reflect the assumption that a l I umecovered modernization capital costs are rolled into Transporter's generally apJJ licable system rates using the same ratcmaking principles underlying the aforementioned settlement. B. Nohvithstanding the foregoing, the rates in cl)2. And d)2.A. for the period following tbc Initial Period will not exceed the rate cap of (i.e., $0.30*). Tf the rate mecbanism described above won[d result at any ti me in a higher rate than the rate cap listed in the previous sentence, the applicable rate shall be set equa l to th e specified rate cap.

(e) fo r al l services during the entire term of this Service Agreement, Shipper will pay generally applicable commodity rates, generally apJJlicabfo surchargcs (other than CCRM or any similar mechnuism intended to recover costs covered by the CCR.Iv!), and genera lly applicable fuel retninage.

(t) *Exclusive of generally applicable demand and commodity surcharges (other than the CCRM or other similar mechanism intended to recover costs covered by the CCRM, which shall be paid, if at 1tll, as part of the reference rates).

(g) Effect of Delay in In-Service Date 1. If Virginia Power is ready to place the Plant into service but Transporter has

not placed the Facilities into service by the Target In-Service Date (as it may be revised), then upon the Actual fn-Service Date, Shipper ·will be entitled to a discounted Reservation Charge of $0.00. This discount sha ll be applicable for a term eq ual to the number of <lays between the Targol Jn-Service Date and the Actual fa-Service Date and shall become effective on the Service Commencement Date. The term of this Service Agreement shall not be extended to account for any such delay. Notwithstanding anything lo the contrary herein, Transporter's obligation to discount rates shall not be excused for any reason exce1)t force majeure that is not caused by the negligence or willful misconduct of Transporter or its agents or representatives and is beyond the reasonable control of such parties.

2. Notwithstanding the provisions of Section 2 (Te1m), if the Plant is not ready to be placed into service by the Service Commencement Date, Shipper shall

not be obligated to pay the rates set forth in this Section 3 (Rates), but will instead pay a monthly carrying charge on the actual expenses incurred by Transporter under the Precedent Agreement at an interest rnte of 6.43% per annum, compounded month ly, but which carrying charge shall never exceed $350,000 per month. This monthly carrying charge in lieu of other rates and charges shall apply beginning on the Service Commeucement Date and ending on the earlier of (i) the date that is three months fo llowing !he Service Commencement Date; or (ii) the date the the P lant is ready lo be p laced in service. This monthly carrying charge and the rates and charges set forth in !his St:ctio11 3 (Rates) will be prorated if the Plant is ready to be placed into service mid-month. The term of this Service .Agreement shall be extended by the number of days that thi s carrying charge is applicable, if any.

Section 4. Notices. Notices to Trnnsporler under this Service Agreement shall be addressed to it at 5 L51 San Felipe, Suite 2500, Houston, Texas 77056, Attention: Customer St!rvices and notices to Shipper sha ll be addressed lo it at Virginia Powel' Services Energy Corp., Inc., 120 Tredegar Street - Clearinghouse, Richmond, VA 23219 Attention: l'v! ichael T . Hunt, until t:hangcd by either party by written notice.

Section 5. Superseded Agreements. This Service Agreement supersedes and cancels, as of the effective date hereof, the fol lowing Service Agrcerncnls : NIA

Section 6. Cred it Alrnex. The credit requirements appended hereto to as Allm.:htm::nl I\ arc incorporated hel'ein by reference with full fo rce and effect and arc made a part of this Service Agn:cm<..:nt as though resta ted herein verbat im.

Section 7. Termination. Prior to lhe Scrvicc Commencement Date, this Service Agn.:cmcnt may be terminated, without cost or penalty to Shipper, if the Precedent Agreement is terminated pursuant to its terms for any reason other than the commencement of service under this Service Agreement. Afler the Service Commencement Date, this Service Agreement may only be terminated pursuant to the terms and conditions of Transporter's tariff.

VlRGINfA POWER SERVICES COLUMBIA GAS TRANS1v1JSSTON, LLC ENERGY CORP., INC. ~

,.-- - i

By: J ))L;f·-- -~-=-Its:

By:

lS~rc.. r, r"al"\J' p o~o" Its: ~-en· • i ~a-J. ~

Date: ~ { ~ '!/I ~ Date: _l/_(_~_I I_~~/ S~---

Begin End Scheduling ~ ~ Point No

May l. A:iril 14. PIO 2018 2034

May l, A;iril 14. PlO 2018 2034

Begin End Scheduling Scheduling ~ llil« ~ .~o~

May 1, Ap:il 14. 842564 VEPCO 2018 2034 Wc.:rcn

May 1. April 14, 842564 "VEPCO 2018 2034 Wurcn

Appendb< A lo Service /\g.rccmcnt No. l39085 Under Rate Sc'1cdule NTS

between Columbi11 Gas Tmnsm:ssioa, LLC ("'Transporter"") a.,d Virginia Power Services Ener:;y Corp .• Inc. (~S'1ip;icr'')

Begin ~

Transoonatinn Demand

Tr:inspon.atio11 Dc01:111C: fl tJl/D~v

Mo.y 1,2018 May 1.2018

April 14, 2034 April 14. 2034

224,0CO Q

Scheduling Pnin~ Name

TCOPool

TCO Pool

Mca:;uring M=uring .Pillr>.t Namc

VEPCO Warren

point No S42564

842564 VEPCO Warren

Primc.rv Rccc:nt Po:~L<

Measuring Measuring Point J:ointNo Name

PIO TCOPool

Pl O TCO Pool

fcim.~r, Dclivcrv Point~

Maximwn Dailv Del ivery Obligation

(Qth/d•vl I I 22~.000

0

Desii;n Daily Quantity

LQ.:h!.d_a~:Ll.L

Rccur:ence f_l)~erv:ii

4/1to9/30 10/l to 3/31

M:iximu.,, Daiiy

Quan:ity LQt!:i/_Q_nv) 224,000

0

Aggresate Daily

Ou~nti1y 1/

Minimum Rc::cipt Pressure

Obligation ..!JmillL

Mmimum Delivery Pressure Obligation ~

See below

l l Application ofMDDOs, DDQs and ADQs and/or :ninimum pr~"SSUte and/or hourly Oowr.:1te shall be as !Ollows:

Rel'ision No. l

Recurrence lnrervpl

411 to 9/30

10/\ :o 3131

Recurre:ice Interval

4/1 to 9130

10/J •o 3/31

Transporter and Shipper agree th:it all volumes cclivcrcd Lo Shipper's primary dclivc:y ~oinL will be at a minim::m prcss~c of712 psig at the inlet of th:: p:css-.xre rci;ulator(s) instcllcd by Transponcr at the primary delivery poi:it and 700 psig at the outlet of those =e regulator{s) when the regulator vaivcs a:e 100% open ("Minimum Delivery Pressure"); providcci, however, that Transponcr's obligatio:i. to maintain the Minimwn Delivery Press:.:re guarantee shall be subjec: i~ all respects to: Shipper 1.:i.xing its gas on a r:it:iole hourly b:isis (9,334 Oth/hoi:r) and Shipper (o: its dcsignce) operating a:'ld :nainlnining its regulation cqU:pmcr.t :i.nd heater located al lhc primo.ry delivery po:nt in o. manner consistent ~,;tb accepted industry practice. Notbinr; in this provision shall be coostrucd as exemptfog Shipper from any ofthc scheduling provisioClS sct;'octb in Trans;iortcr's tuiff.

The M:is:cr List oflnLercon."leCLS (MLl) as defined in Section I o!'thc Genera: Terms and Condi:ions ofTra:-.sport::r's Tarilf is incorporated herein '::>y :cfcrcnce for the purposes oflisting valid secondary interruptible receipt poin:s a."ld delivery poinl<.

_Yes .Ji._ No (Check applic..-iblc blank) Transporter :md Shipper have rnut-~al!y agreed to a R~:;uta:ory Restructuring Redcction Option pursuant 10 Section 42 ofthc General Tenns and Conditions ofTruisportcr's FERC Gas Ta:iE.

_X_Ycs __ No (Check appiicoble b!ank) Shipper has a contr:!ctual right of firs: refusal equh·alc:it to the right or (irsi refusal set forth from time lo time b Section 4 of lbc General Terms and Conditions of Transporter's FERC Gas Tariff.

_Yes~ No (Check applicable blank) All gas shall be delivered at existing points of intercon.-:ection within :he :V!DDO's, and/or ADQ's and/or DDQ's. as appiicable, scl fonh in Transporter's currently e:fectivc Rate Scheculc _ _ Servicc Agreemen: No. __ Appendix A wi:h Shipper, wh:cr. for such points set for-J1 arc incorporated herein by reference.

_Yes .A_ No (Check applicable blank) TI1is Service Agreement covers interim capacity sold pursuant lo the provisions ofGcncr:ll Terms and Conditions Section 4. Right offust refusal rigins. if any. applicable to this i:ltcrim c:ipacity are li:nitc:C as provided for in General Tcm:s and Conditio:i.s Section 4.

_Yes _.K_ No (Cheek applicable b:ar.k) This Service Ag:CC:T\C:lt CO\'Crs offsystem capacity sold pursua.-:t to Scc:ion 47 of the General Tcr.ns and Conditions. RieJ!t of first refusal rights, if any, app]jc:iblc to this offsystcm capacity arc limited as providce for in Gcncrnl Tenns and Condi:ions SecLio:t 4 7.