Exhibit 10.19
DRI Services Agreement
This DRI Services Agreement (this "Agreement") is entered into as of the
1st day of January, 1999, by and between VIRGINIA ELECTRIC AND POWER COMPANY, a
Virginia public service (the "Company"), DOMINION RESOURCES SERVICES, INC., a
Virginia corporation, ("DRI Services"), and CONSOLIDATED NATURAL GAS SERVICE
COMPANY, INC., a Delaware corporation ("CNG Services"). DRI Services and CNG
Services are sometimes referred to herein as a "Service Company" and,
collectively, as the "Service Companies".
WHEREAS, each of the Company, DRI Services and CNG Services is a direct or
indirect wholly owned subsidiary of Dominion Resources, Inc. ("DRI");
WHEREAS, each of the Service Companies has been formed for the purpose of
providing administrative, management and other services to DRI and its
subsidiaries ("System Companies"); and
WHEREAS, the Company believes that it is in the interest of the Company to
provide for an arrangement whereby the Company may, from time to time and at the
option of the Company, agree to purchase such administrative, management and
other services from either one or both of the Service Companies;
NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:
I. SERVICES OFFERED. Exhibit I hereto lists and describes all of the
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services that are available from either of the Service Companies. Each of the
Service Companies hereby offers to supply those services to Company and to other
subsidiaries of DRI. Such services are and will be provided to the Company only
at the request of the Company.
II. SERVICES SELECTED.
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A. Initial Selection of Services. Exhibit II lists the services Company
hereby agrees to receive from DRI Services. Exhibit III lists the services
Company hereby agrees to receive from CNG Services.
B. Annual Selection of Services. Each Service Company shall send an
annual service proposal form to the Company on or about December 1 listing
services proposed for the coming calendar year. By December 31, the Company
shall notify each Service Company of the services it has elected to receive from
that Service Company during the following calendar year.
III. PERSONNEL. The Service Companies will provide services by utilizing
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the services of such executives, accountants, financial advisers, technical
advisers, attorneys, engineers, geologists and other persons as have the
necessary qualifications.
If necessary, the Service Companies, after consultation with the Company,
may also arrange for the services of nonaffiliated experts, consultants and
attorneys in connection with the performance of any of the services supplied
under this Agreement.
IV. COMPENSATION AND ALLOCATION. As and to the extent required by law, the
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Service Companies will provide such services at cost. Exhibit IV hereof contains
rules for determining and allocating costs for DRI Services and CNG Services.
V. TERMINATION AND MODIFICATION.
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A. Modification of Services. The Company may modify its selection of
services at any time during the calendar year by giving the relevant Service
Company written notice of the additional services it wishes to receive, and/or
the services it no longer wishes to receive, from the Service Company. The
requested modification in services shall take effect on the first day of the
first calendar month beginning at least thirty (30) days after the Company sent
written notice to the Service Company.
B. Modification of Other Terms and Conditions. No other amendment,
change or modification of this Agreement shall be valid, unless made in writing
and signed by all parties hereto.
C. Termination of this Agreement. The Company may terminate this
Agreement as to either or both of the Service Companies by providing sixty (60)
days advance written notice of such termination to the applicable Service
Company or Companies. Either Service Company may terminate this Agreement as to
the Company by providing sixty (60) days advance written notice of such
termination to the Company. The parties expressly agree that termination of this
Agreement by the Company as to one of the Service Companies shall not constitute
a termination of this Agreement with respect to the other Service Company and
that termination of this Agreement by either Service Company shall not affect
the obligations of the other Service Company hereunder to the Company.
This Agreement is subject to termination or modification at any time to the
extent its performance may conflict with the provisions of the Public Utility
Holding Company Act of 1935, as amended ("1935 Act), or with any rule,
regulation or order of the Securities and Exchange Commission ("SEC") adopted
before or after the making of this Agreement. This Agreement shall be subject to
the approval of any state commission or other state regulatory body whose
approval is, by the laws of said state, a legal prerequisite to the execution
and delivery or the performance of this Agreement.
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VI. NOTICE. Where written notice is required by this Agreement, said
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notice shall be deemed given when mailed by United States registered or
certified mail, postage prepaid, return receipt requested, addressed as follows:
a. To the Company:
Virginia Electric and Power Company
000 Xxxx Xxxx Xxxxxx
Xxxxxxxx, XX 00000-0000
b. To DRI Services:
Dominion Resources Services, Inc.
000 Xxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
c. To CNG Services:
Consolidated Natural Gas Service Company, Inc.
CNG Tower
000 Xxxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
VII. GOVERNING LAW. This Agreement shall be governed by and construed in
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accordance with the laws of the respective states of incorporation of the
Service Companies, without regard to their respective conflict of laws
provisions.
VIII. ENTIRE AGREEMENT. This Agreement, together with its exhibits,
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constitutes the entire understanding and agreement of the parties with respect
to its subject matter, and effective upon the execution of this Agreement by the
respective parties hereof and thereto, any and all prior agreements,
understandings or representations with respect to this subject matter (except
for completion of obligations of CNG Services and Consolidated Natural Gas
Company ("CNG") and its subsidiaries arising before the merger of DRI and CNG
became effective) are hereby terminated and canceled in their entirety and are
of no further force or effect.
IX. WAIVER. No waiver by any party hereto of a breach of any provision of
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this Agreement shall constitute a waiver of any preceding or succeeding breach
of the same or any other provision hereof.
X. ASSIGNMENT. This Agreement shall inure to the benefit of and shall be
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binding upon the parties and their respective successors and assigns. No
assignment of this Agreement or any party's rights, interests or obligations
hereunder may be made without the other party's consent, which shall not be
unreasonably withheld, delayed or conditioned.
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XI. SEVERABILITY. If any provision or provisions of this Agreement shall
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be held to be invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall in no way be affected or
impaired thereby.
XII. EFFECTIVE DATE. This Agreement is effective as to DRI and its
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subsidiaries, including DRI Services, as of January 1, 2000 and is effective as
to Consolidated Natural Gas Company ("CNG") and its subsidiaries, including CNG
Services, as of the closing of the proposed merger between DRI and CNG.
XIII. VSCC APPROVAL. Pursuant to the Virginia State Corporation
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Commission's Order Approving Merger in Joint Petition of Dominion Resources,
Inc. and Consolidated Natural Gas Company, For approval of agreement and plan of
merger under Chapter 5 of Title 56 of the Code of Virginia, Case No. PUA990020,
issued on September 17, 1999, neither Virginia Power, Virginia Natural Gas, Inc.
nor any other DRI affiliate subject to regulation by the Commission shall have
any obligation under this Agreement except to the extent the Commission has
approved such obligation.
XIV. NCUC APPROVAL. Pursuant to the North Carolina Utilities Commission's
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("NCUC") Order Approving Merger In the Matter of Application by Dominion
Resources, Inc., for Authorization under G.S. 62-111 to Engage in a Business
Combination Transaction, Docket No. E-22, Sub 380, issued on October 18, 1999,
Virginia Electric and Power Company, d/b/a North Carolina Power:
(i) may not make or incur a charge under this Agreement except in
accordance with North Carolina law and the rules, regulations
and orders of the NCUC promulgated thereunder; and
(ii) may not seek to reflect in rates any cost incurred or revenue
level earned under an agreement subject to the 1935 Act to the
extent disallowed by the NCUC.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the date first above mentioned.
Attest: By Company:
_____________________________ _______________________________________
_______________________________________
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Attest: By DRI Services:
_____________________________ _______________________________________
_______________________________________
Attest: By CNG Services:
_____________________________ _______________________________________
_______________________________________
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EXHIBIT I
DESCRIPTION OF SERVICES OFFERED BY EACH
SERVICE COMPANY UNDER THIS AND SIMILAR SERVICE CONTRACTS
1. Accounting. Provide advice and assistance to System Companies in
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accounting matters, including the development of accounting practices,
procedures and controls, the maintenance of the general ledger and related
subsidiary systems, the preparation and analysis of financial reports, and the
processing of certain accounts such as accounts payable, payroll, customer and
cash management.
2. Auditing. Periodically audit the accounting records and other
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records maintained by System Companies and coordinating their examination, where
applicable, with that of independent public accountants. The audit staff will
report on their examination and submit recommendations, as appropriate, on
improving methods of internal control and accounting procedures.
3. Legal and Regulatory. Provide advice and assistance with respect
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to legal and regulatory issues as well as regulatory compliance, including 1935
Act authorizations and compliance and regulatory matters under other Federal and
State laws.
4. Information Technology, Electronic Transmission and Computer
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Services. Provide the organization and resources for the operation of an
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information technology function including the development, implementation and
operation of a centralized data processing facility and the management of a
telecommunications network. This function includes the central processing of
computerized applications and support of individual applications in System
Companies. Develop, implement, and process those computerized applications for
System Companies that can be economically best accomplished on a centralized
basis.
5. Software Pooling. Accept from System Companies ownership of and
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rights to use, assign, license or sub-license all software owned, acquired or
developed by or for System Companies which System Companies can and do transfer
or assign to it. Preserve and protect the rights to all such software to the
extent reasonable and appropriate under the circumstances; license System
Companies, on a non-exclusive, no-charge or at-cost basis, to use all software
which the relevant Service Company has the right to sell, license or sub-
license; and, at the relevant System Companies' expense, permit System Companies
to enhance any such software and license others to use all such software and
enhancements to the extent that the relevant Service Companies shall have the
legal right to so permit.
6. Employee Benefits/Pension Investment. Provide central accounting
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for employee benefit and pension plans of System Companies. Advise and assist
System Companies in the administration of such plans and prepare and maintain
records of employee and company accounts under the said plans, together with
such statistical data and reports as are pertinent to the plans.
7. Employee Relations. Advise and assist System Companies in the
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formulation and administration of employee relations policies and programs
relating to the relevant System Companies' labor relations, personnel
administration, training, wage and salary administration and safety.
8. Operations. Advise and assist System Companies in the study,
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planning, engineering and construction of energy plant facilities of each System
Company and of the System as a whole, and advise, assist and manage the
planning, engineering (including maps and records) and construction operations
of System Companies. Develop long-range operational programs for all the System
Companies and advise and assist each such System Company in the coordination of
such programs with the programs of the other System Companies.
9. Executive and Administrative. Advise and assist System Companies
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in the solution of major problems and in the formulation and execution of the
general plans and policies of System Companies. Advise and assist System
Companies as to operations, the issuance of securities, the preparation of
filings arising out of or required by the various Federal and State securities,
business, public utilities and corporation laws, the selection of executive and
administrative personnel, the representation of System Companies before
regulatory bodies, proposals for capital expenditures, budgets, financing,
acquisition and disposition of properties, expansion of business, rate
structures, public relationships and other related matters.
10. Business and Operations Services. Advise and assist System
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Companies in all matters relating to operational capacity and the preparation
and coordination of operating studies. Manage System Companies' purchase, sale,
movement, transfer and accounting of volumes to ensure continued recovery of all
prudently incurred energy purchase costs through local jurisdictional cost
recovery mechanisms. Compile and communicate information relevant to system
operation. Perform general business and operations support services, including
business, plant and facilities operation, maintenance and management, travel,
aviation, fleet and mail services.
11. Exploration and Development. Advise and assist System Companies
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in all geological and exploration matters including the acquisition and
surrender of acreage and the development of underground storage facilities.
12. Risk Management. Advise and assist System Companies in securing
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requisite insurance, in the purchase and administration of all property,
casualty and marine insurance, in the settlement of insured claims and in
providing risk prevention advice.
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13. Marketing. Plan, formulate and implement marketing programs, as
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well as provide associated marketing services to assist System Companies with
improving customer satisfaction, load retention and shaping, growth of energy
sales and deliveries, energy conservation and efficiency. Assist System
Companies in carrying out policies and programs for the development of plant
locations and of industrial, commercial and wholesale markets and assist with
community redevelopment and rehabilitation programs.
14. Medical. Direct and administer all medical and health activities
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of System Companies. Provide systems of physical examination for employment and
other purposes and direct and administer programs for the prevention of
sickness.
15. Corporate Planning. Advise and assist System Companies in
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studying and planning in connection with operations, budgets, economic
forecasts, capital expenditures and special projects.
16. Procurement. Advise and assist System Companies in the
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procurement of real and personal property, materials, supplies and services,
conduct purchase negotiations, prepare procurement agreements and administer
programs of material control.
17. Rates. Advise and assist System Companies in the analysis of
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their rate structure in the formulation of rate policies and in the negotiation
of large contracts. Advise and assist System Companies in proceedings before
regulatory bodies involving the rates and operations of System Companies and of
other competitors where such rates and operations directly or indirectly affect
System Companies.
18. Research. Investigate and conduct research into problems
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relating to production, utilization, testing, manufacture, transmission, storage
and distribution of energy. Keep abreast of and evaluate for System Companies
all research developments and programs of significance affecting System
Companies and the energy industry, conduct research and development in promising
areas and advise and assist in the solution of technical problems arising out of
System Companies' operations.
19. Tax. Advise and assist System Companies in the preparation of
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Federal and other tax returns, and generally advise System Companies as to any
problems involving taxes including the provision of due diligence in connection
with acquisitions.
20. Corporate Secretary. Provide all necessary functions required of
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a publicly held corporation; coordinating information and activities among
shareholders, the transfer agent, and Board of Directors; providing direct
services to security holders; preparing and filing required annual and interim
reports to shareholders and the SEC; conducting the annual meeting of
shareholders and ensuring proper maintenance of corporate records.
21. Investor Relations. Provide fair and accurate analysis of DRI
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and its operating subsidiaries and its outlook within the financial community,
enhancing DRI's
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position in the energy industry; balancing and diversifying shareholder
investment in DRI through a wide range of activities; providing feedback to DRI
and its operating subsidiaries regarding investor concerns, trading and
ownerships; holding periodic analysts meetings; and providing various operating
data as requested or required by investors.
22. Environmental Compliance. Provide consulting, cleanup, and other
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activities as required by System Companies to ensure full compliance with
applicable environmental statutes and regulations.
23. Customer Services. Provide services and systems dedicated to
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customer service, including billing, remittance, credit, collections, customer
relations, call centers, energy conservation support and metering.
24. Energy Marketing. Provide services and systems dedicated to
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energy marketing, including marketing and trading of gas and electric power, and
energy price risk management and development of marketing and sales programs in
physical and financial markets.
25. Treasury/Finance. Provide services related to managing all
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administrative activities associated with financing, including management of
capital structure; cash, credit and risk management activities; investment and
commercial banking relationships; oversight of decommissioning trust funds and
general financing activities.
26. External Affairs. Provide services in support of corporation
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strategies for managing relationships with federal, state and local governments,
agencies and legislative bodies. Formulate and assist with public relations and
communications programs and administration of corporate contribution and
community affairs programs.
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EXHIBIT II
SERVICES THE COMPANY AGREES TO RECEIVE FROM DRI SERVICES
SERVICE YES NO
1. Accounting __ __
2. Auditing __ __
3. Legal and Regulatory __ __
4. Information Technology, Electronic Transmission
and Computer Services __ __
5. Software Pooling __ __
6. Employee Benefits/Pension Investment __ __
7. Employee Relations __ __
8. Operations __ __
9. Executive and Administrative __ __
10. Business and Operations Services __ __
11. Exploration and Development __ __
12. Risk Management __ __
13. Marketing __ __
14. Medical __ __
15. Corporate Planning __ __
16. Procurement __ __
17. Rates __ __
18. Research __ __
19. Tax __ __
20. Corporate Secretary __ __
21. Investor Relations __ __
22. Environmental Compliance __ __
23. Customer Services __ __
24. Energy Marketing __ __
25. Treasury/Finance __ __
26. External Affairs __ __
EXHIBIT III
SERVICES THE COMPANY AGREES TO RECEIVE FROM CNG SERVICES
SERVICE YES NO
1. Accounting __ __
2. Auditing __ __
3. Legal and Regulatory __ __
4. Information Technology, Electronic Transmission
and Computer Services __ __
5. Software Pooling __ __
6. Employee Benefits/Pension Investment __ __
7. Employee Relations __ __
8. Operations __ __
9. Executive and Administrative __ __
10. Business and Operations Services __ __
11. Exploration and Development __ __
12. Risk Management __ __
13. Marketing __ __
14. Medical __ __
15. Corporate Planning __ __
16. Procurement __ __
17. Rates __ __
18. Research __ __
19. Tax __ __
20. Corporate Secretary __ __
21. Investor Relations __ __
22. Environmental Compliance __ __
23. Customer Services __ __
24. Energy Marketing __ __
25. Treasury/Finance __ __
26. Public Affairs __ __
EXHIBIT IV
METHODS OF ALLOCATION FOR CNG SERVICES AND DRI SERVICES
CNG Services and DRI Services shall allocate costs independently. Each Service
Company shall allocate costs among companies receiving service from it under
this and similar service contracts using the following methods:
I. The costs of rendering service by the Service Company will include all
costs of doing business including interest on debt but excluding a return
for the use of equity capital for which no charge will be made to System
Companies.
II. A. The Service Company will maintain a separate record of the expenses of
each department. The expenses of each department will include:
1. those expenses that are directly attributable to such department,
and
2. an appropriate portion of those office and housekeeping expenses
that are not directly attributable to a department but which are
necessary to the operation of such department.
B. Expenses of the department will include salaries and wages of
employees, rent and utilities, materials and supplies, depreciation,
and all other expenses attributable to the department. The expenses of
a department will not include:
1. those incremental out-of-pocket expenses that are incurred for
the direct benefit and convenience of an individual company or
group of companies,
2. Service Company overhead expenses, including expenses of the
corporate secretary's department that are attributable to
maintaining the corporate existence of the Service Company, and
all other incidental overhead expenses including those auditing
fees, internal auditing department expenses and accounting
department expenses attributable to the Service Company.
C. The Service Company will establish annual budgets for controlling the
expenses of each department and for determining estimated costs to be
included in interim monthly billing.
III. A. Employees in each department will be divided into two groups:
1. Group A will include those employees rendering service to System
Companies, and
2. Group B will include those office and general service employees,
such as secretaries, file clerks and administrative assistants,
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who generally assist employees in Group A or render other
housekeeping services and who are not engaged directly in
rendering service to each Company or a group of companies.
B. Expenses set forth in Section II. above will be separated to show:
1. salaries and wages of Group A employees, and
2. all other expenses of the department.
C. There will be attributed to each dollar of a Group A employee's salary
or wage, that percentage of all other expenses of his department (as
defined in B above), that his salary or wage is to the total Group A
salaries and wages of that department.
D. Group A employees in each department will maintain a record of the
time they are employed in rendering service to each company or group
of companies. An hourly rate will be determined by dividing the total
expense attributable to a Group A employee as determined under
subsection C above by the productive hours reported by such employee.
IV. The charge to the Company for a particular service will be determined by
multiplying the hours reported by Group A employees in rendering such
service to each Company by the hourly rates applicable to such employees.
When such employees render service to a group of companies, the charge to
each Company will be determined by multiplying the hours attributable to
the Company under the allocation formulas set forth in Section IX of this
Exhibit by the hourly rates applicable to such employees.
V. To the extent appropriate and practical, the foregoing computations of
hourly rates and charges may be determined for groups of employees within
reasonable salary range limits.
VI. Those expenses of the Service Company that are not included in the annual
expense of a department under Section II. above will be charged to System
Companies receiving service as follows:
A. Incremental out-of-pocket costs incurred for the direct benefit and
convenience of a company or group of companies will be charged
directly to such company or group of companies. Such costs incurred
for a group of companies will be allocated on the basis of an
appropriate formula.
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B. Service Company overhead expenses referred to in Section II. above
will be charged to the Company in the proportion that the charges
made to the Company for costs, other than those set forth in this
Section VI., are to the total of such charges to all companies
receiving service.
VII. Notwithstanding the foregoing basis of determining cost allocations for
billing purposes, cost allocations for certain services involving machine
operations and production units will be determined on an appropriate
basis established by the Service Company relating to the direct use of
machine equipment or production units .
VIII. Monthly bills will be issued for the services rendered to the Company on
an actual or estimated basis. Estimates will normally be predicated on
service department budgets and estimated productive hours of employees
for the year. At the end of each year, estimated figures will be revised
to reflect actual experience during such year and adjustments will be
made in amounts billed to give effect to such revision.
IX. When Group A employees render services to a group of companies, the
following formulas shall be used to allocate the time of such employees
to the individual companies receiving such service:
A. The Service Department or Function formulas to be used when
employees render services to all companies participating in such service, for
the services indicated are set forth below. When necessary during period
1999-2002, the allocation formulas described below will be calculated (in part
or in whole) using data based on services performed for System Companies by
Dominion Resources, Inc., prior to the merger of Dominion Resources, Inc. and
Consolidated Natural Gas Company.
Service Department
or Function Basis of Allocation
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Employee Benefits/ The number of employee and annuitant accounts as
Pension Investments of the preceding December 31st.
Human Resources The number of employees as of the preceding
December 31st.
Corporate Planning:
- Capital Budgets Total investment in plant recorded at preceding
December 31st.
- Operating &
Maintenance Budgets Total operating expenses, excluding purchased gas
expense, purchased power expense (including fuel
expenses), other purchased products and royalties,
for the preceding year ended December 31st.
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Service Department
or Function Basis of Allocation
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Business and Operations Energy sale and deliveries for the preceding year
Services ended December 31st.
Risk Management Insurance premiums for the preceding year ended
December 31st.
Rates Total regulated company operating expenses,
excluding purchased gas expense, purchased power
expense (including fuel expense), other purchased
products and royalties, for the preceding year
ended December 31st.
Research Gross revenues from the sale of natural gas
(including intercompany sales) and electricity,
recorded during the preceding year ended December
31st.
Tax The sum of the total income and total deductions
as reported for Federal Income Tax purposes on the
last return filed.
Corporate Secretary/ The weighted average of the previous three years
Investor Relations of total Service Company xxxxxxxx for the prior
years ended December 31st.
Customer Services For metering, the number of gas or electric meters
for the preceding year ended December 31st;
otherwise the number of customers for the
preceding year ended December 31st.
System Services Group:
Information Technology:
LDC/EDC Computer Applications Number of residential and commercial customers at
the end of the preceding year ended December 31st.
Other Computer Applications Number of users or usage of specific computer
systems at the end of the preceding year ended
December 31st.
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Service Department
or Function Basis of Allocation
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Network Computer Applications Number of network devices at the end of the
preceding year ended December 31st.
Telecommunications Applications Number of telecommunications units at the end of
the preceding year ended December 31st.
Facility Services:
Building Services Square footage of office space as of the preceding
year ended December 31st.
Processing Services:
Payroll Number of employees on the previous December 31st
or the number of payroll payments generated during
the previous year ending December 31st.
Cash Management & Number of customer payments processed during the
Customer Payment Processing preceding year ended December 31st.
Accounts Payable Processing Number of accounts payable documents processed
during the preceding year ended December 31st.
Fleet Administration Number of vehicles at December 31st.
Purchasing Dollar value of contract purchases for the
preceding year ended December 31st.
Regulated Business Support Group:
Engineering Services:
General Services Gas pipeline and/or electric supply line footage
as of the preceding year ended December 31st.
Transmission and Storage Services Total investment in storage and transmission plant
as of the preceding year ended December 31st.
Gas Supply: Gas volumes purchased for each affiliate for the
preceding year ended December 31st.
Electricity Supply: Electricity load purchased for each affiliate for
the preceding year ended December 31st.
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Service Department
or Function Basis of Allocation
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Marketing
Shared Projects Annual marketing plan budget for the current year
of allocation.
Other Indirect Costs Total marketing direct and shared project costs
billed to each System Company for the preceding
year ended December 31st.
Material Management Material inventory assets as of the preceding year
ended December 31st.
System Accounting:
Financial Accounting and Reporting Number of financial related transactions, records
and reports generated, and account code
combinations for the preceding year ended December
31st.
Regulated Fixed Assets Regulated companies fixed assets added, retired or
transferred during the preceding year ended
December 31st.
B. Company Group Formulas to be used in the absence of a service
department or function formula or when service rendered by employees
is for a different group of companies than those companies regularly
participating in such service:
Company Group Basis of Allocation
All companies (includes all Total operating expenses, excluding purchased gas
System Companies except Service expense, purchased power expense (including fuel
Company) expense), other purchased products and royalties,
for the preceding year ended December 31st.
All retail companies Volume of gas and quantity of electricity sold at
retail during the preceding year ended December
31st (converted to dollar value).
All wholesale companies Gross revenues from sales for resale recorded
during the preceding year ended December 31st.
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All companies having Gross investment in transmission plant recorded at
transmission lines preceding December 31st.
All production companies Production plant budget for the current year of
allocation.
Appalachian production Gross investment in Appalachian production plant
companies recorded at preceding December 31st.
All storage companies Gross investment in storage plant, excluding
non-current inventory, recorded at preceding
December 31st.
All Companies/ The weighted average of the previous three years
Shareholder Activities of Service Company xxxxxxxx.
All unregulated companies Total unregulated companies' operating expenses,
excluding purchased gas expense, purchased power
expense (including fuel expense), other purchased
products and royalties, for the preceding year
ending December 31st.
All regulated companies Total regulated companies' operating expenses,
excluding purchased gas expense, purchased power
expense (including fuel expense), other purchased
products and royalties, for the preceding year
ended December 31st.
C. If the use of a basis of allocation would result in an inequity
because of a change in operations or organization, then the Service
Company may adjust the basis to effect an equitable distribution.
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