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 risks associated with purchases of natural gas. See Notes 7 and 19 for more information. As of December 31, 2014 and 2013, Virginia Power's derivative assets and liabilities with affiliates were not material.

Virginia Power participates in certain Dominion benefit plans as described in Note 21. At December 31, 2014 and 2013, Virginia Power's amounts due to Dominion associated with the Dominion Pension Plan and reflected in noncurrent pension and other postretirement benefit liabilities in the Consolidated Balance Sheets, were $219 million and $144 million, respectively. At December 31, 2014, Virginia Power's amounts due from Dominion associated with the Dominion Retiree Health and Welfare Plan and reflected in other deferred charges and other assets in the Consolidated Balance Sheets were $37 million and at December 31, 2013, amounts due to Dominion and reflected in noncurrent pension and other postretirement benefit liabilities were $3 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:



Year Ended December 31,	2014		2013		2012
(millions)
Commodity purchases from affiliates	$	543	$	417	$	368
Services provided by affiliates⁽¹⁾	432		415		399
Services provided to affiliates	22		21		19

(1) Includes capitalized expenditures.

Virginia Power has borrowed funds from Dominion under short-term borrowing arrangements. There were $427 million and $97 million in short-term demand note borrowings from Dominion as of December 31, 2014 and 2013, respectively. Virginia Power had no outstanding borrowings, net of repayments under the Dominion money pool for its nonregulated subsidiaries as of December 31, 2014 and 2013. Interest charges related to Virginia Power's borrowings from Dominion were immaterial for the years ended December 31, 2014, 2013 and 2012.

There were no issuances of Virginia Power's common stock to Dominion in 2014, 2013 or 2012.

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 December 31, 2014 and 2013, all of Dominion Gas' commodity derivatives were with affiliates. See Notes 7 and 19 for more information. See Note 9 for information regarding sales of assets to an affiliate.

Dominion Gas participates in certain Dominion benefit plans as described in Note 21. At December 31, 2014 and 2013, Dominion Gas' amounts due from Dominion associated with the Dominion Pension Plan and reflected in noncurrent pension and other postretirement benefit assets in the Consolidated Balance Sheets, were $614 million and $577 million, respectively. At December 31, 2014 and 2013, Dominion Gas' liabilities to Dominion associated with the Dominion Retiree Health and Welfare Plan and reflected in other deferred credits and other liabilities in the Consolidated Balance Sheets were $7 million and $14 million, respectively.



Year Ended December 31,	2014		2013		2012
(millions)
Purchases of natural gas and transportation and storage services from affiliates	$	34	$	31	$	14
Sales of natural gas and transportation and storage services to affiliates	84		109		64

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



Year Ended December 31,	2014		2013		2012
(millions)
Services provided by affiliates⁽¹⁾	$	106	$	116	$	107
Services provided to affiliates	17		4		3

(1) Includes capitalized expenditures.

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



	December 31,
	2014		2013
(millions)
Customer receivables from related parties⁽¹⁾	$	22	$	3
Imbalances receivable from affiliates⁽²⁾	3		6
Imbalances payable to affiliates⁽³⁾	—		1
Affiliated notes receivable⁽⁴⁾	9		5


(1)	Includes $17 million due from Atlantic Coast Pipeline, an affiliated VIE.


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

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

(4) 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 $384 million and $1.3 billion as of December 31, 2014 and 2013, respectively. Interest charges related to Dominion Gas' total borrowings from Dominion were $4 million, $35 million and $61 million for the years ended December 31, 2014, 2013 and 2012, respectively.