Dominion Hub III Project Seeking Binding Precedent

Dominion announced that its Dominion Transmission subsidiary has received more than 570,000 dekatherms per day (Dt/day) of interest in its proposed Dominion Hub III project during a recent open season, and will move forward with obtaining binding precedent agreements.

"The strong response to our open season demonstrates a high level of interest from our core customers in having Rockies supply as an option for their supply portfolios," said Jeff Keister, director-Wholesale Marketing. "We are pleased we can offer this additional flexibility to our customers."

This is the second Dominion project aimed at bringing Rockies supplies into its system from a planned interconnect with the Rockies Express pipeline in Clarington, Ohio. The first project, Dominion Hub I, will move up to 200,000 Dt/day of supplies into the Northeast markets on behalf of a Rockies shipper. Dominion has entered into interconnect agreements with Rockies Express and filed an application with the Federal Energy Regulatory Commission seeking approval of Dominion Hub I.

Dominion Hub III would allow Dominion's firm transportation customers to move a portion of their firm receipt rights to the planned interconnection with the Rockies Express pipeline at Clarington. The current design would allow approximately 300,000 Dt/day of existing firm receipt point entitlements to be transferred to the Clarington interconnect.

By structuring the project to incorporate existing customer entitlements, Dominion will be able to maximize the use of existing pipeline infrastructure to move Rockies supplies to Northeast markets with relatively minor facility additions. Because no major greenfield construction will be required, the Dominion Hub III project can be put in place with less disruption to landowners and the environment than other proposed projects.

Dominion Hub III participants will continue to have secondary access to all other points on Dominion's postage stamp system, including access to Dominion South Point.

Dominion anticipates charging an incremental reservation surcharge for the receipt point realignment, based on the expected cost of the required facilities. The target surcharge is currently a unit rate of $0.06 per dekatherm. Rates for this service will be based on the final design of the project's facilities.