Related Party Transactions

Virginia Power and Dominion Gas engage in related party transactions primarily with other Dominion subsidiaries (affiliates). Virginia Power's and Dominion Gas' receivable and payable balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. Virginia Power and Dominion Gas are included in Dominion's consolidated federal income tax return. A discussion of significant related party transactions follows.

Virginia Power

Transactions with Affiliates

Virginia Power transacts with affiliates for certain quantities of natural gas and other commodities in the ordinary course of business. Virginia Power also enters into certain commodity derivative contracts with affiliates. Virginia Power uses these contracts, which are principally comprised of commodity swaps, to manage commodity price risk associated with purchases of natural gas. See Note 9 for more information. As of June 30, 2014 and December 31, 2013, Virginia Power's derivative assets and liabilities with affiliates were not material. Virginia Power participates in certain Dominion benefit plans. In Virginia Power's Consolidated Balance Sheets at June 30, 2014 and December 31, 2013, amounts due to Dominion associated with these benefit plans included in other deferred credits and other liabilities were $182 million and $147 million, respectively, and amounts due from Dominion at June 30, 2014 included in other deferred charges and other assets were $16 million.

DRS and other affiliates provide accounting, legal, finance and certain administrative and technical services to Virginia Power. In addition, Virginia Power provides certain services to affiliates, including charges for facilities and equipment usage.

Presented below are significant transactions with DRS and other affiliates:



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
(millions)
Commodity purchases from affiliates	$	113	$	105	$	315	$	190
Services provided by affiliates⁽¹⁾	106		106		214		202
Services provided to affiliates	6		5		11		10


(1)	Amounts are subject to capitalization.

Virginia Power has borrowed funds from Dominion under short-term borrowing arrangements. There were $97 million in short-term demand note borrowings from Dominion as of December 31, 2013. There were no short-term demand note borrowings as of June 30, 2014. Virginia Power had no outstanding borrowings, net of repayments under the Dominion money pool for its nonregulated subsidiaries as of June 30, 2014 and December 31, 2013. Interest charges related to Virginia Power's borrowings from Dominion were not material for the three and six months ended June 30, 2014 and 2013.

Dominion Gas

Transactions with Affiliates

Dominion Gas transacts with affiliates for certain quantities of natural gas and other commodities at market prices in the ordinary course of business. Additionally, Dominion Gas provides transportation and storage services to affiliates. Dominion Gas also enters into certain other contracts with affiliates, which are presented separately from contracts involving commodities or services. As of June 30, 2014 and December 31 2013, all of Dominion Gas' commodity derivatives were with affiliates. See Note 9 for more information. Dominion Gas participates in certain Dominion benefit plans as described in Note 18. See Note 10 for information regarding sales of assets to an affiliate.



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
(millions)
Purchases of natural gas and transportation and storage services from affiliates	$	6	$	7	$	8	$	9
Sales of natural gas and transportation and storage services to affiliates	21		22		46		44

DRS and affiliates provide certain administrative and technical services to Dominion Gas. Dominion Gas provides certain services to affiliates, including technical services. The costs of these services follow:



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
(millions)
Services provided by affiliates⁽¹⁾	$	25	$	33	$	51	$	59
Goods and services provided by Dominion Gas to affiliates	3		5		6		9
Goods and services provided by Dominion Gas to related parties	7		2		16		5


(1)	Amounts are subject to capitalization.

The following table presents affiliated and related party activity reflected in Dominion Gas' Consolidated Balance Sheets:



	June 30, 2014		December 31, 2013
(millions)
Customer receivables from related parties	$	6	$	3
Imbalances receivable from affiliates⁽¹⁾	6		6
Imbalances payable to affiliates⁽²⁾	1		1
Affiliated notes receivable⁽³⁾	7		5

(1) Amounts are presented in other current assets in Dominion Gas' Consolidated Balance Sheets.

(2) Amounts are presented in other current liabilities in Dominion Gas' Consolidated Balance Sheets.

(3) Amounts are presented in other deferred charges and other assets in Dominion Gas' Consolidated Balance Sheets.

Dominion Gas' borrowings under the IRCA with Dominion totaled $1.5 billion as of June 30, 2014 and $1.3 billion as of December 31, 2013. Interest charges related to Dominion Gas' total borrowings from Dominion were $1 million and $11 million for the three months ended June 30, 2014 and 2013, respectively, and $2 million and $21 million for the six months ended June 30, 2014 and 2013, respectively. Dominion Gas capitalized $5 million and $8 million of interest charges to property, plant and equipment for the three and six months ended June 30, 2013, respectively.