Chase Tower, Eighth Floor. P.O. Box September 20,2017

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1 STEPTOE & JOHNSON PLLC ATTORNEYS AT LAW Chase Tower, Eighth Floor P.O. Box 1588 Charlestwr, WV (304) (304) Fax w.steptoe-johnsan.wm Writer s Conracc Infamation (304) Telephone (304) Facsirile todd.swansonosleptoe-johnron.coii, September 20,2017 VM HAND DELIVERY Ingrid Ferrell, Executive Secretary Public Service Commission of West Virginia 201 Brooks Street Charleston, West Virginia Re. CASE NO c{ -G-PC HOPE GAS, INC., dba DOMINION ENERGY WEST VIRGINIA Petition for consent and approval of an agreement with an affiliate Dear Ms. Ferrell: Enclosed for filing on behalf of Hope Gas, Inc., dba Dominion Energy West Virginia, please find the original and 12 copies of its Petition for Consent and Approval of an Agreement with an Affiliate. I ask that you please file the enclosed Petition and distribute the additional copies to the appropriate parties at the Commission. Also, please date stamp the file copy provided and return it with our messenger. Thank you in advance for your attention to the foregoing, and please contact me should you have any questions. Sincerely, 4- Todd M. Swanson Encl. cc (wi encl.): Brien J. Fricke, Esq West Virginia Ohio Kentucky Pennsylvania Texas Colorado

2 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO G-PC HOPE GAS, INC., dba DOMINION ENERGY WEST VIRGINIA Petition for consent and approval to enter into an agreement with an affiliate PETITION COMES NOW Hope Gas, Inc., dba Dominion Energy West Virginia (the Company ) and, under the requirements of W. VA. CODE and W. VA. CODE R , respectfully petitions the Commission for consent and approval to enter into an agreement with an affiliate. In support, the Company states as follows: 1. The name and address of the Company are: Hope Gas, Inc., dba Dominion Energy West Virginia 48 Columbia Blvd. Clarksburg, West Virginia The Company is a public utility corporation organized and existing under the laws of the State of West Virginia and is a wholly-owned subsidiary of Dominion Energy, Inc. ( Dominion ). Subject to Commission regulation, the Company provides natural gas utility service to about 112,000 customers in 35 West Virginia counties. 3. The name and address of the Company s affiliate are: Dominion Energy Transmission, Inc 925 White Oaks Blvd. Bridgeport, WV Dominion Energy Transmission, Inc. ( DETI ) is organized and existing under the laws of the State of Delaware and is the interstate gas transmission subsidiary of Dominion

3 Subject to regulation by the Federal Energy Regulatory Commission, DETI transports and stores natural gas in Ohio, West Virginia, Pennsylvania, New York, Maryland, and Virginia. 5. Attached hereto as Exhibit A is a copy of the proposed service agreement by and between the Company and DETI (the Service Agreement ). Under the Service Agreement, DETI will permit the Company to construct, operate, maintain, replace and remove a meter and regulating station (hereinafter Facilities ), whereby such Facilities shall be owned by the Company on DETI s 75-foot by 75-foot site located at the West Ridge Development Park near Morgantown, West Virginia (hereinafter Site ). DETI will charge the Company no rent for use of the Site. 6. Under the Service Agreement, the Company shall bear all cost and expense involved in the construction, operation, maintenance, replacement, and removal (including but not limited to: state, county or local permits; licenses or approvals; utilities; miscellaneous fees; taxing and zoning variances) of the Facilities at the Site. 7. The Company requests a waiver of the requirement under Rules 10.9 and 21 of the Commission s Rules of Practice and Procedure to provide information about the financial condition of the Company and DETI. As wholly-owned subsidiaries of Dominion, the Company and DETI are in sound financial condition. Furthermore, the Company routinely provides quarterly financial information to Commission Staff. 8. Commission consent and approval is required for certain acts by public utilities and others. W. VA. CODE For example, Commission consent and approval is required when a public utility proposes to enter into an agreement with an affiliate. Id. 9. The Commission approves an agreement between a public utility and its affiliate, like the Service Agreement, where: (i) the terms and conditions are reasonable; (ii) neither party

4 has an undue advantage over the other; and (iii) the public in West Virginia is not adversely affected. Id. The Service Agreement satisfies each of these tests: a. Reasonableness of Terms. The terms and conditions are reasonable as between the parties and as to the Company s customers. Specifically, the Service Agreement will allow the Company to locate the Facilities close to an interstate transmission line that will provide it access to a reliable supply of gas. Plus, DETI will not charge the Company rent for locating the Facilities at the Site. b. No Undue ildvantape. Since the Company will bear all cost and expense involved in the construction, operation. maintenance, replacement, and removal of the Facilities at the Site, no party has an undue advantage. c. No Adverse Effect on Public. Since the Company s operation of the Facilities will help ensure the continued and uninterrupted service of natural gas to its customers, the public is not adversely affected by the Service Agreement. 10. The Company is not seeking to recover the costs associated with the Service Agreement with a change in rates at this time. The Commission shall determine the Company s base rates in the Company s next base rate case. 1 I. In sum, the Company asserts that the Service Agreement is in the public interest as it allows the Company to locate the Facilities at the Site-which is close to a reliable source of natural gas-with no rental fee for use of the Site. Thus, entering into the Service Agreement will have no negative impact upon the Company s provision of natural gas service in West Virginia. * * * * * * * * x

5 WHEREFORE, the Company respectfully requests that the Commission: 6) consent to and approve the Company entering into the Service Agreement with its affiliate, DETI; (ii) waive the requirement to produce information on the financial condition of the Company and DETI; (iii) retain this matter and not assign it to the Division of Administrative Law Judges; (iv) (VI waive notice and hearing on the petition; and grant any other relief it deems appropriate. DATED this 20th day of September Respectfully submitted: HOPE GAS, INC., dba DOMINION ENERGY WEST VIRGINIA Kurt L. Krieger (WVSB No. 4927) Todd M. Swanson (WVSB No ) Ryan D. Ewing (WVSB No ) STEPTOE &JOHNSON PLLC Chase Tower, 17th Floor Post Office Box 1588 Charleston, West Virginia (304) Brim J. Fricke (WVSB No ) Senior Counsel Dominion Energy Legal Department 925 White Oaks Boulevard Bridgeport, West Virginia (681) I 4

6 EXHIBIT A Service Agreement

7 ini 9Y Hope Gas, Inc., d/b/a Dominion Energy West Virginia 48 Columbia Blvd. Clarksburg, WV RE: West Ridge M&R Facility Dear Hope Gas, Inc., d/b/a Dominion Energy West Virginia: This letter will serve as the agreement between Dominion Energy Transmission, Inc., (hereinafter Dominion ) and Hope Gas, Inc., d/b/a Dominion Energy West Virginia (hereinafter DEWV ), whereby Dominion permits D EW to construct, operate, maintain, replace and remove a M&R skid (hereinafter Facilities ), which Facilities shall be owned by DEWV on Dominion s 75 X 75 site located at West Ridge Development (hereinafter Site ). This permission is subject to the following: 1. The Site is more specifically described as the West Ridge M&R. The location of the Facilities shall be as indicated on Dominion s plot plan drawing which is attached hereto as Exhibit A, and made a part hereof. 2. There will be no rental fee charged for DEWV s use of the Site. 3. DEWV s access as operator to the Site shall be limited to the gate(s) on the north, south and east side of the Site and such access controlled by two (2) locks, with Dominion and DEWV each supplying one (1) lock. DEWV agrees to restrict access to the Site to its employees, agents, vendors and contractors, and to only such equipment and vehicles as may be required to construct, operate, maintain, replace and remove the Facilities, 4. DEWV shall bear all cost and expense involved with the constwtion, operation, maintenance and removal (including but not limited to state, county or local permits, licenses or approvals; utilities, miscellaneous fees; taxes and zoning variances) of the Facilities. 5. DEWV activities on and around the Site as operator shall not interfere with Dominion s use thereof. 6. Either DEWV or Doininion may terminate this Agreement by giving the other party thirty (30) days prior Written notice of its intent to terminate. Upon termination, DEWV shall have sixty (60) days in which to remove its Facilities from the Site and restore the ground to its original condition, with reasonable wear and tear excepted, all at the cost and expense of DEWV. Provided, however, that Dominion shall not have the right to terminate this Letter Agreement so

8 long as the Facilities are utilized by DEWV to provide natural gas transportation services, as required by contract, to Dominion. 7. D EW agrees to indemnify and hold harmless Dominion, its officers, directors, employees, parent corporation and affiliated corporations, and successors and assigns against any and all claims for loss, liability or damage (including but not limited to, attorney fees, court costs, deposition fees, etc.) on account of property damage or personal injury (including death) or damage to the environment arising out of or in connection with the work done or to be performed and in connection with or arising out of the acts or omissions of DEW, its contractors, employees or agents however caused while the same are upon, entering or leaving the Site and surrounding premises, provided DEWV does not assume responsibility to the extent that such claims are caused by the negligence or willful misconduct of Dominion, its contractors, employees or agents. DEW hereby waives on behalf of itself, its contractors, employees or agents, all claims for loss, liability or damage (including but not limited to attorney fees, court costs, deposition fees, etc.) on account of property damage or personal injury (including death) or damage to the environment arising out of or in connection with the work done or to be performed and in connection with or arising out of the acts or omissions of DEW, its contractors, employees, or agents, however caused while the same are upon, entering or leaving the Site and surrounding premises, except to the extent that such claims are caused by the negligence or willful misconduct of Dominion, its contractors, employees or agents. 8. Neither party may assign this Letter Agreement, or the rights created thereunder, without the prior written consent of the other party. 9. The terms, conditions, covenants and provisions of this Letter Agreement shall extend to and be binding upon the permitted successors and assignees of the parties hereto. IO. 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. The parties hereto agree that they will work together to mutually obtain any such regulatory authorizations All notices required or permitted hereunder shall be given in writing and mailed by registered mail to the party entitled hereunder at the following addresses: If to DEW at: Hope Gas, Inc., d/b/a Dominion Energy West Virginia Attention: Denise A. Poling Land Services Coordinator 48 Columbia Blvd. Clarksburg, WV If to Dominion, at: Dominion Energy Transmission, Inc. Attention: Land, Lease & Right-of-way Dept. 925 White Oaks Blvd. Bridgeport, WV 26330

9 If you are in agreement with the foregoing, then please signify your acceptance by having an authorized officer of your company complete the appropriate section below my signature and return one (1) counterpart original of this Letter Agreement to: Dominion Energy Transmission, hic. Attention Gamy A. Bourne 2397 Davisson Run Road Clarksburg, WV The other counterpart should be retained for your files. Accepted and Agreed to this ON ENERGY WV

10 VERIFICATION STATE OF WEST VIRGINIA, COUNTY OF HARRISON to-wit: Allen D. Ammons, after being duly sworn upon his oath states that he is Manager, Gas Operations for Hope Gas, Inc., dba Dominion Energy West Virginia, the Petitioner named in the attached and foregoing Petition for Consent and Approval of an Agreement with an Affiliate and that he has read the same, and the statements and facts contained therein are true and correct, except insofar as they are therein stated to b are therein stated to be on information and b Allen D. Ammons Taken, sworn to and subscribed before me of-mbp, MY commission expires Abv, \ I 3 aoa I STATE OF WEST VlRQlNlA NOTARY PUBLIC