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. As of March 31, 2015, Virginia Power's derivative assets and liabilities with affiliates were $24 million and $7 million, respectively. As of December 31, 2014, Virginia Power's derivative assets and liabilities with affiliates were not material. See Notes 7 and 9 for more information.

Virginia Power participates in certain Dominion benefit plans described in Note 18. In Virginia Power's Consolidated Balance Sheets at March 31, 2015 and December 31, 2014, amounts due to Dominion associated with these benefit plans included in other deferred credits and other liabilities were $243 million and $219 million, respectively, and amounts due from Dominion at March 31, 2015 included in other deferred charges and other assets were $46 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 Virginia Power's significant transactions with DRS and other affiliates:



	Three Months Ended March 31,
	2015		2014
(millions)
Commodity purchases from affiliates	$	252	$	202
Services provided by affiliates⁽¹⁾	110		108
Services provided to affiliates	5		5


(1)	Includes capitalized expenditures.

Virginia Power has borrowed funds from Dominion under short-term borrowing arrangements. There were $10 million and $427 million in short-term demand note borrowings from Dominion as of March 31, 2015 and December 31, 2014, respectively. Virginia Power had no outstanding borrowings, net of repayments under the Dominion money pool for its nonregulated subsidiaries as of March 31, 2015 and December 31, 2014. Interest charges related to Virginia Power's borrowings from Dominion were immaterial for the three months ended March 31, 2015 and 2014.

There were no issuances of Virginia Power's common stock to Dominion for the three months ended March 31, 2015 and 2014.

Dominion Gas

Transactions with Related Parties

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 March 31, 2015 and December 31, 2014, all of Dominion Gas' commodity derivatives were with affiliates. See Notes 7 and 9 for more information. See Note 10 for information regarding sales of assets to an affiliate.

Dominion Gas participates in certain Dominion benefit plans as described in Note 18.

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



	Three Months Ended March 31,
	2015		2014
(millions)
Purchases of natural gas and transportation and storage services from affiliates	$	2	$	18
Sales of natural gas and transportation and storage services to affiliates	18		21
Services provided by related parties⁽¹⁾	34		28
Services provided to related parties	20		13


(1)	Includes capitalized expenditures.

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



	March 31, 2015		December 31, 2014
(millions)
Customer receivables from related parties⁽¹⁾	$	11	$	22
Imbalances receivable from affiliates⁽²⁾	4		3
Affiliated notes receivable⁽³⁾	10		9

(1) Includes $5 million and $17 million due from Atlantic Coast Pipeline, a related party VIE, at March 31, 2015 and December 31, 2014, respectively.

(2) Amounts are presented in other current assets 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 $39 million as of March 31, 2015 and $384 million as of December 31, 2014. Interest charges related to Dominion Gas' total borrowings from Dominion were immaterial for the three months ended March 31, 2015 and 2014.