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The clipping this text was read from

APPLICATION OF COLUMBIA GAS OFVIRGINIA, INC., FOR APPROVAL

OF A SPECIAL RATE AND

CONTRACT. CASE NO. PUE990781

On November 12,1999, Columbia Gas of Virginia, Inc. (“Columbia” or “Company”), filed its Application of Columbia Gas of Virginia, Inc., for approval of a special rate and contract pursuant to § 56-235.2 of the code of Virginia. The Company seeks approval of an agreement with Chaparral (Virginia) Inc. (“Chaparral”) for firm transportation of natural gas and balancing services for Chaparral’s steel recycling facility in Dinwiddie County. The agreement provides for services to be provided under the terms of the Company’s Schedule TS-2 and General Terms and Conditions but at a special negotiated rate for delivery service. According to the Application, the costs and revenues associated with the Chaparral agreement could affect all classes of customers, including residential and small commercial customers.

Section 56-235.2 of the Code of Virginia was amended by the 1996 General Assembly to permit utilities to request special rates, contracts, or incentives for particular customers or classes of customers. Section 56-235.2 D, as amended, includes a subsection that requires the Commission to issue guidelines for special rates, contracts, or incentives that will ensure that other customers are not caused to bear increased rates as a result of such special rates.

A public hearing on Columbia's Application shall be convened before a Hearing Examiner on April 12, 2000, at 10:00 a. m., in the Commission’s second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia.

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