System Management Service Daily Delivery Variance Charges (DDVC)* Examples of Critical Day Impact Other than Small Customers SMS Partially Within Firm Entitlement SMS Within Firm Entitlement SOL in Effect Critical Day in Effect SOL in Effect Punitive Daily Delivery Variance Charge Punitive/Critical Daily Delivery Variance Charge Level II Punitive Daily Delivery Variance Charge $113.00 $113.00 $56.50 Positive/Critical DDVC 3% $22.00 Positive/Critical DDVC 2% $15.00 $1.00 FE Positive DDVC FE Positive/Critical DDVC - $15.00 $1.00 SMS $0.0208 Sch Sch 5% Tolerance $1.00 SMS $0.0208 SMS $0.0208 Negative DDVC Negative DDVC $0.00 $0.00 Notes: 1) 2) 3) 4) 5) 6) 7) 8) *EFFECTIVE 11-01-06 $10.90 $113.00 Positive/Critical DDVC 3% $22.00 FE SMS $0.0208 5% Tolerance Sch 5% Tolerance SMS $0.0208 Punitive/Critical Daily Delivery Variance Charge Level II $56.50 Positive/Critical DDVC 2% $15.00 FE 5% Tolerance SMS $0.0208 Punitive Daily Delivery Variance Charge $56.50 5% Tolerance 5% Tolerance Critical Day in Effect Punitive/Critical DDVC Level I Positive/Critical DDVC 3% $22.00 Positive DDVC SMS $0.0208 5% Tolerance SOL in Effect SOL in Effect Critical Day in Effect Punitive Daily Delivery Variance Charge Negative DDVC $0.00 Sch 5% Tolerance $113.00 SMS $0.0208 $113.00 $10.90 Punitive/Critical DDVC Level I $56.50 $56.50 Positive/Critical DDVC 3% $22.00 Positive/Critical DDVC 3% $22.00 Positive DDVC $1.00 $1.00 Positive/Critical DDVC 2% $15.00 Sch FE SMS $0.0208 5% Tolerance FE Positive/Critical DDVC 2% $15.00 Sch Sch Sch 5% Tolerance 5% Tolerance SMS $0.0208 Punitive/Critical Daily Delivery Variance Charge Level II Punitive/Critical DDVC Level I Positive/Critical DDVC 2% $15.00 Sch = FE Punitive Daily Delivery Variance Charge $10.90 Positive DDVC Sch = FE Critical Day in Effect SOL in Effect Punitive/Critical Daily Delivery Variance Charge Level II Positive DDVC $1.00 TI Scheduled or TF Overrun Scheduled W/O SMS Service Primary Scheduled less than MDQ with TF Overrun Scheduled Punitive/Critical DDVC Level I Punitive/Critical DDVC Level I Positive DDVC Critical Day in Effect Punitive/Critical Daily Delivery Variance Charge Level II $10.90 $10.90 Firm Entitlement Scheduled 5% Tolerance 5% Tolerance SMS $0.0208 5% Tolerance SMS $0.0208 Negative DDVC Negative DDVC $0.00 $0.00 Negative DDVC Negative DDVC Negative DDVC Negative DDVC Negative DDVC $0.00 $0.00 $0.00 $0.00 $0.00 Includes customers who do not qualify as small customers under Northern’s tariff. Scheduled volume in each example is represented by the bold horizontal line. The 5% tolerance is equal to 5% of scheduled volume. The volume to which Positive DDVC above Firm Entitlement (FE) applies is equal to 5% of FE for TF shippers if no TF Overrun is scheduled and is equal to 5% of scheduled volume for TF shippers with TF Overrun scheduled and for TI shippers. The volume to which Punitive/Critical DDVC Level 1 applies is equal to the first 5% of all delivered volumes in excess of the Positive/Critical DDVC component. SMS availability may be authorized above scheduled volumes on SOL Days. Such availability will be posted on Northern’s Website as a percentage of SMS by Zone, or by Market Area. Firm Entitlement (FE) line is the sum of the legal entity’s MDQ, alternate firm scheduled, overrun scheduled, and interruptible scheduled. On a SOL day where Primary Scheduled is less than MDQ, Firm Entitlement (FE) shall be equal to MDQ only. Revised 07-14-2011