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Addendum B: Monthly Scheduled Quantities Monthly Scheduled Quantities CMSQ"} In the event of a noncore curtailment episode, the monthly scheduled quantity ("MSQ") specified in a customer's Schedule A: Intrastate Transmission Service contract ("Schedule A contract') can affect a customer's operations. Specifically, the MSQ specified in the Schedule A contract will be used to determine the volume a customer has the right to continue to bum during the noncore curtailment episode. Per .SoCaIGas' Tariffs Rule 23 (section K.3) the MSQ and operating days of the week (also specified in the Schedule A contract) are used to determine the authorized curtailment quantity ("ACQ") during any noncore curtailment episode. The ACQ is that amount of gas a customer is authorized to burn during a curtailment episode. As described in Rule 23(K)(3), a customer's ACQ is equal to the customer's contract MSQ divided by the actual operating days in that month. When MSQ volumes are present in a Schedule A contract for core service, they usually are for utility informational purposes, and they do not function to limit usage during curtailment. An exception would be when multiple sequences of gas service are specified for the same facility (e.g. specifying noncore Rate Schedule GT -F volumes with core Rate Schedule GN -10 volumes through the same meter). In this instance, the core MSQs specified in the Schedule A contract will be used to determine the volume a customer has the right to continue to burn during a noncore curtailment episode. Because these contract volumes play such an important role during a noncore curtailment, it is very important that customers understand the potential impact of the volumes they contract for. The MSQ and ACQ treatment will be as follows: • During a partial noncore curtailment of Interruptible service, "pro rata" reduction of usage requested of a GT -I customer will be based upon that customer's Schedule A contract volumes. For example, if SoCalGas requires a 50% pro rata reduction of interruptible service volumes, each interruptible service customer will have an ACQ based upon a 50% reduction of the GT -I volume specified in their Schedule A contract. After a 100% curtailment of Interruptible (GT -1) customers, GT -F "full requirements" customers are affected. ACQ's for these customers will be based upon their Schedule A contract volumes. Specifically, any usage above the customer's ACQ will be treated as a revised 10/3/03 page 1 of 2