Miller, Canfield, Paddock and Stone, P.L.C. One Michigan Avenue, Suite 900 Lansing, Michigan TEL (517) FAX (517)

Transcription

1 Founded in 1852 by Sidney Davy Miller PUL MICHEL COLLINS TEL (517) FX (517) E-MIL Miller, Canfield, Paddock and Stone, P.L.C. One Michigan venue, Suite 900 Lansing, Michigan TEL (517) FX (517) MICHIGN: nn rbor Detroit Grand Rapids Kalamazoo Lansing Troy FLORID: Tampa ILLINOIS: Chicago NEW YORK: New York OHIO: Cincinnati Cleveland CND: Windsor CHIN: Shanghai MEXICO: Monterrey POLND: Gdynia Warsaw Wrocław December 28, 2018 Ms. Kavita Kale Executive Secretary Michigan Public Service Commission 7109 W. Saginaw Hwy., 3rd Floor Lansing, MI Re: Michigan Gas Utilities Corporation GCR Plan and Factors MPSC Case No. U Dear Ms. Kale: Enclosed for electronic filing are the following: 1. Michigan Gas Utilities Corporation s pplication; 2. Direct Testimony and Exhibits of Russell T. Laursen; 3. Direct Testimony and Exhibits of John M. Schmid; 4. Direct Testimony and Exhibits of Kevin R. Kuse; 5. Direct Testimony and Exhibits of David J. Kyto, CM; 6. Direct Testimony, Exhibits and Workpapers of David J. Tyler; and 7. ppearances of Paul M. Collins and Sherri. Wellman. Finally, a marked-up Notice of Hearing has been electronically sent to ngela Sanderson. If you should have any further questions, please kindly advise. Very truly yours, Miller, Canfield, Paddock and Stone, P.L.C. cc: David Tyler Mary Wolter Ted Eidukas Koby Bailey By: Paul Michael Collins

2 S T T E O F M I C H I G N BEFORE THE MICHIGN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of MICHIGN GS ) UTILITIES CORPORTION for authority to ) implement a gas cost recovery plan and factors for the ) 12-month period from pril 2019 through March ) 2020, and for related approvals. ) ) Case No. U PPLICTION Michigan Gas Utilities Corporation ( MGUC or the Company ), a Delaware corporation authorized to do business in Michigan, hereby applies for approval of a Gas Cost Recovery ( GCR ) plan and factors for the 12-month period from pril 2019 through March The Company respectfully represents to the Michigan Public Service Commission ( MPSC or the Commission ) as follows: 1. MGUC, with its principal office located at 899 South Telegraph Road, Monroe, Michigan, is engaged as a public utility in the business of supplying and distributing natural gas to the public in its various service areas located in the southern and western portions of Michigan s Lower Peninsula. 2. MGUC s retail natural gas sales business and its retail gas transportation business are subject to the jurisdiction of the Commission. 3. Pursuant to 1982 P 304 ( ct 304 ), the Commission, in its Opinion and Order dated ugust 30, 1983, in Case No. U-7483, authorized MGUC s predecessor-ininterest to incorporate a GCR Clause in its rate schedules.

3 4. Section 6h(3) of ct 304 requires that a utility file a complete GCR plan in order to implement its GCR Clause. Section 6h(4) of ct 304 also requires a utility to file a five-year forecast with that GCR plan. 5. MGUC requests authority to implement a uniform GCR factor of $ per thousand cubic feet ( Mcf ) for the billing months of pril 2019 through March The GCR factor of $ per Mcf is comprised of a commodity charge of $ per Mcf and a Reservation Charge of $ per Mcf. 7. Consistent with the authority granted in Case Nos. U et al., MGUC will assess a Reservation Charge of $ per Mcf to both GCR and Gas Customer Choice ( GCC ) customers for the billing months of pril 2019 through March MGUC also seeks to implement a Contingency Factor Matrix, which as described in the Company s testimony and exhibits, will be used to adjust the GCR factor should circumstances warrant. 9. The testimony and exhibits constituting MGUC's GCR Plan include (i) a description of all of MGUC s major contracts and gas supply arrangements, (ii) a description of the expected GCR and GCC load factors, (iii) support for the derivation of the GCR factor and the Reservation Charge, (iv) a description of the expected costs and sources of supply, and (v) a description of the proposed GCR Ceiling Price djustment (Contingency) Matrix. lso included in the testimony is an evaluation of the reasonableness and prudence of MGUC s decisions to obtain gas in the manner described in the GCR plan in light of the major alternative gas supplies available to MGUC to minimize its costs of gas. The forecasting requirements of MCL 460.6h(7) are also addressed in the testimony and exhibits. 2

4 10. dditionally, MGUC requests authority to treat as part of its booked cost of gas for purposes of the GCR, reasonably and prudently incurred premiums on financial hedging instruments. WHEREFORE, Michigan Gas Utilities Corporation prays that the Commission:. Make and issue its notice of hearing, and after such notice and hearing; B. uthorize Michigan Gas Utilities Corporation to implement a 12-month GCR plan for the period from pril 1, 2019, through March 31, 2020, as proposed in this pplication; C. Determine that the decisions underlying the plan are reasonable and prudent; D. uthorize Michigan Gas Utilities Corporation to implement the GCR factor of $ per Mcf and Contingency Factor Matrix for the period from pril 1, 2019 through March 31, 2020 as proposed in this pplication and supporting testimony and exhibits; E. uthorize Michigan Gas Utilities Corporation to implement a Reservation Charge of $ per Mcf to both GCR and GCC customers; F. Determine that the decisions underlying the five-year forecast are reasonable and prudent, and indicate any cost items in the five-year forecast that, on the basis of present evidence, this Commission would be unlikely to permit Michigan Gas Utilities Corporation to recover from its customers in rates, rate schedules, or gas cost recovery factors established in the future; G. uthorize Michigan Gas Utilities Corporation to treat as part of its booked cost of gas for purposes of the GCR, reasonably and prudently incurred premiums on financial instruments; and H. Grant Michigan Gas Utilities Corporation such further relief as may be lawful and proper. 3

5 Respectfully submitted, MICHIGN GS UTILITIES CORPORTION Dated: December 28, 2018 By: One of its ttorneys Sherri. Wellman (P38989) Paul M. Collins (P69719) MILLER, CNFIELD, PDDOCK ND STONE, P.L.C. One Michigan venue, Suite 900 Lansing, MI (517) ttorneys for Michigan Gas Utilities Corporation 4

6 MICHIGN GS UTILITIES CORPORTION Case No. U /2020 GS COST RECOVERY PLN ND FIVE-YER FORECST INDEX OF EXHIBITS Page 1 of 2 Exhibit Page(s) Description Witness Workpaper(s) -1 (RTL-1) -2 (RTL-2) -3 (RTL-3) -4 (RTL-4) -5 (RTL-5) -6 (RTL-6) -7 (RTL-7) -8 (JMS-1) -9 (JMS-2) -10 (JMS-3) -11 (KRK-1) -12 (BMM-1) -13 (BMM-2) -14 (DJT-1) 1 System Map Service reas and Pipeline/Storage ccessibility R. Laursen None 1 Schematic of Supply Options R. Laursen None 1 Summary of Gas Supply, Transportation and Storage Contracts 2 Interstate Pipeline Contracts and Other ssets Summary R. Laursen None R. Laursen None 1 Peak Day Supply nalysis R. Laursen None 1 Forecasted Future Prices R. Laursen None 2 Historical Basis Differential and Forecasted Basis R. Laursen None 3 Historical Btu Data R. Laursen None 1 Total GCR Supply by Source for the 12-Month Periods (2019/2020 through 2023/2024) R. Laursen None 1 thru 22 GCR Supply llocation R. Laursen None 1 thru 2 GCR & GCC Customer Normal Load J. Schmid None 1 thru 3 GCR & GCC Customer Counts J. Schmid None 1 thru 3 Five Year Forecast Of the Normal Load Requirements for GCR and GCC customers J. Schmid None 1 thru 11 Peak Day nalysis K. Kuse None 1 thru 33 Status Update on Hedging D. Kyto None 1 thru Proposed Hedge Strategy D. Kyto None 1 nnual Base GCR Factors and Reservation Charge for the 12-Month Period Ending March 31, 2020 D. Tyler None

7 MICHIGN GS UTILITIES CORPORTION Case No. U /2020 GS COST RECOVERY PLN ND FIVE-YER FORECST INDEX OF EXHIBITS Page 2 of 2 Exhibit Page(s) Description Witness Workpaper(s) -15 (DJT-2) -16 (DJT-3) -17 (DJT-4) -18 (DJT-5) -19 (DJT-6) -20 (DJT-7) 1 thru 6 Forecasted Load Statistics for the 12-Month Periods 2019/2020 through 2023/ thru /2020 Transportation Volume Forecast and Transportation Service Contracts 1 Calculation of the GCR Over/(Under)-Recovery Projected Balance for 2018/ Calculation of the Reservation Charge Over/(Under)-Recovery Projected Balance for 2018/ Billed Volumes in psia dry for the GCR Plan Period Ending March 31, Derivation of the Base GCR Factor and Reservation Charger for the GCR Plan Period Ending March 31, Computation of Revenue Collected through application of the Base GCR Factor and Reservation Charge for the Plan Period Ending March 31, Calculation of the nnual Base GCR factor, Reservation Charge and Gas Commodity Cost per Mcf 1 thru 6 Transportation, No-Notice, and Storage Service Options 1 Legal and Regulatory ctions Taken at the Federal Level To Minimize the Cost of Purchased Gas D. Tyler WP D. Tyler None D. Tyler None D. Tyler None D. Tyler WP D. Tyler None D. Tyler None D. Tyler None D. Tyler None D. Tyler None 1 thru 5 Contingency Matrix D. Tyler None

8 STTE OF MICHIG N BEFORE THE MICHIGN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of ) MICHIGN GS UTILITIES CORPORTION ) to implement a gas cost recovery plan and factors ) Case No. U for the 12-month period from pril 2019 through ) March 2020, and for related approvals. ) DIRECT TESTIMONY ND EXHIBITS OF RUSSELL T. LURSEN ON BEHLF OF MICHIGN GS UTILITIES CORPORTION December 28, 2018

9 Q Q PRT I QULIFICTIONS OF RUSSELL T. LURSEN PLESE STTE YOUR NME, POSITION ND BUSINESS DDRESS. My name is Russell T. Laursen. My business address is WEC Energy Group, Inc., 700 North dams Street, P.O. Box 19001, Green Bay, Wisconsin My position at Michigan Gas Utilities Corporation ( MGUC or the Company ), a subsidiary of WEC Energy Group, Inc. ( WEC ), is Manager Gas Supply. WHT RE YOUR PRIMRY DUTIES ND RESPONSIBILITIES S MNGER GS SUPPLY FOR MGUC? s Manager-Gas Supply, I am responsible for the daily operational oversight and balancing of MGUC s distribution system. I am also responsible for the following: (i) developing gas supply and storage capacity strategies to provide reliable and cost-effective natural gas service; (ii) developing and implementing short- and long-term gas supply and capacity release strategies including gas purchase and hedging strategies; (iii) administering gas supply, transportation and storage contracts in accordance with prescribed legal policies, procedures, and approved plans; and (iv) acquiring daily, monthly, and annual supplies to meet system requirements. dditionally, I review and approve invoices for supply, storage, and transportation costs Q PLESE SUMMRIZE YOUR EDUCTION, EMPLOYMENT ND 2

10 PROFESSIONL EXPERIENCE. I received a Bachelor of Science degree in Mechanical Engineering from the Milwaukee School of Engineering in 2004, and a Master of Business dministration degree from the University of Wisconsin La Crosse in I have been employed by WEC or its predecessors since In addition to my current role, I have held positions as a Gas Trader ( ), Manager of Upper Peninsula Power Company ( UPPCO ) Power Supply ( ), Manager of Retail Electric Rates ( ), and Manager of Resource Planning and Policy ( ). In my role from , and beginning again in September 2015, I worked as a Gas Trader for WEC subsidiaries (including MGUC). In this position, I planned and executed monthly purchases, released capacity, planned and executed storage activity, and generally had a significant role in ensuring the daily operations of MGUC fit within the structure of the GCR plan. In ugust 2016, I assumed my current role as Gas Supply Manager Q HVE YOU PREVIOUSLY TESTIFIED IN NY REGULTORY PROCEEDINGS? Yes. I have testified before the Michigan Public Service Commission ( MPSC or Commission ) and the Public Service Commission of Wisconsin ( PSCW ) in various Gas Cost Recovery ( GCR ), Power Supply Cost Recovery ( PSCR ), and rate case dockets on behalf of UPPCO and Wisconsin Public Service Corporation ( WPS Corp ), including: MPSC Case No. U-18414; MGU s GCR Plan; 3

11 MPSC Case No. U-18154; MGU s GCR Plan; MPSC Case No. U-17091: UPPCO s 2013 PSCR Plan; MPSC Case No. U R: UPPCO s 2012 PSCR Plan Reconciliation; MPSC Case No. U-16881: UPPCO s 2012 PSCR Plan; MPSC Case No. U R: UPPCO s 2011 PSCR Plan Reconciliation; PSCW Docket No UR-123: WPS Corp s 2015 test year rate case; and PSCW Docket No UR-122: WPS Corp s 2014 test year rate case. 8 4

12 Q PRT II DIRECT TESTIMONY OF RUSSELL T. LURSEN WHT IS THE PURPOSE OF YOUR DIRECT TESTIMONY ND EXHIBITS? The purpose of my Direct Testimony and Exhibits is to present MGUC s plan for meeting the demand of the Company s Gas Cost Recovery ( GCR ) customers under all conditions, and meeting the demand of the Company s Gas Customer Choice ( GCC ) customers under Design Peak Day conditions. I will detail the supply assets, storage plan, and supply purchase strategy that MGUC will use for meeting those demands. I will also describe some of the unique characteristics of MGUC s service territory and discuss some of the operational concerns these create for the Company. Finally, I will provide the projected cost of gas for the five year period, Q PLESE IDENTIFY THE EXHIBITS YOU RE SPONSORING IN THIS PROCEEDING. I am sponsoring the following exhibits, all of which were prepared by me or under my direction and supervision: 21 Exhibit Content (RTL-1) System Map - Service reas and Pipeline/Storage ccessibility -2 (RTL-2) Schematic of Supply Options -3 (RTL-3) Page 1: Summary of Gas Supply, Transportation and Storage Contracts Page 2: Contracts and Other ssets Summary 5

13 Q Q -4 (RTL-4) Design Peak Day Supply nalysis -5 (RTL-5) Page 1: Price Forecast Page 2: Historical Basis Differential and Forecast Page 3: Historical Btu Data -6 (RTL-6) Page 1: Total GCR Supply by Source for 12- Month Periods ( through ) -7 (RTL-7) Pages 1 through 22: GCR Supply llocation ( through ) DESCRIPTION OF SERVICE TERRITORY ND SUPPLY SYSTEM SSETS Service Territory PLESE DESCRIBE THE COMPNY S SERVICE TERRITORY ND OPERTING SYSTEM. MGUC serves approximately 177,000 southern and western Michigan customers in 151 communities. Natural gas property includes approximately 3,400 miles of distribution main, 440 miles of transmission main, 33 gate stations and 166,000 lateral services. MGUC owns and operates gas storage, which can hold approximately 2.9 Bcf of natural gas. Exhibit -1 (RTL-1) is a map of the Company s system that identifies the various sub-areas of MGUC and identifies the pipeline/storage facilities that can bring supply to each sub-area. s the map illustrates, MGUC s service territory can be grouped into three non-contiguous geographic regions. Supply System ssets PLESE DESCRIBE THE SUPPLY SYSTEM SSETS THT THE COMPNY USES TO PROVIDE NTURL GS TO GCR CUSTOMERS, ND TO 6

14 Q Q PROVIDE SUPPLIER OF LST RESORT SERVICE TO GCC CUSTOMERS. s shown in Exhibit -1 (RTL-1), MGUC s sub-areas are organized into three groups, the Western rea (Group 1), the Coldwater rea (Group 2), and the Monroe rea (Group 3). The Company obtains its natural gas supply through transportation from NR Pipeline Company ( NR ), Panhandle Eastern Pipe Line Company ( PEPL ), Vector Pipeline ( Vector ), DTE Energy Company ( DTE ), and Consumers Energy Company ( Consumers ). The Company also purchases natural gas directly from producers and broker/marketers in the service territory who utilize interstate and intrastate supply sources. Finally, MGUC owns and operates three underground gas storage reservoirs located in Calhoun County, Michigan. Exhibit -2 (RTL-2) provides a schematic view of the various services for the sub-areas. This exhibit depicts the various sources of supply with arrows indicating the service territory served. RE THE SME SUPPLY SYSTEM SSETS USED FOR ECH OF THE THREE GROUPS WITHIN MGUC S SERVICE TERRITORY? No. s illustrated by Exhibits -1 (RTL-1) and -2 (RTL-2), each group has a unique supply mix due to the location of the various pipelines in MGUC s territory. PLESE DESCRIBE THE COMPNY S PIPELINE TRNSPORTTION SSETS. The Company has firm transportation contracts with NR, DTE, PEPL, and Vector. Exhibit -3 (RTL-3) details the assets. 7

15 Q PLESE DESCRIBE THE DIFFERENT TYPES OF FIRM TRNSPORTTION SERVICES ND STORGE SERVICES UTILIZED BY MGUC. Transportation services used by MGUC include: NR Enhanced Transportation Service ( ETS ) Firm transportation capacity with system wide aggregation. This service is used to transport supply to each of the sub-areas in quantities up to the contractual limits. NR Firm Transportation Service ( FTS ) Firm transportation capacity. This service is used to transport supply to NR Storage in the summer and Benton Harbor in the winter. PEPL Enhanced Firm Transportation ( EFT ) Firm transportation with system wide aggregation. PEPL serves the Coldwater and Monroe service areas. Vector Firm Transportation ( FT ) Firm transportation capacity. This service is used to deliver gas to the Coldwater area. Storage and balancing services utilized by MGUC include: NR FSS Firm storage capacity within NR s storage fields with daily and intra-day nomination rights. This service is used for seasonal supply balancing, and also short term back-up and balancing purposes, due to the intra-day nominations rights. This service is also a required component of No Notice Service ( NNS ) NR NNS Firm balancing agreement on NR Pipeline with daily 8

16 injection/withdrawal rights. The difference between the nominations and the allocated quantities at a delivery point is deemed the no-notice quantity and allocated as an injection or withdrawal from the designated storage account. This service is used for daily balancing purposes, as it enables MGUC to meet unforecasted and un-nominated changes NR Deferred Delivery Service ( DDS ) - Interruptible storage service on NR Pipeline with daily and intra-day injection/withdrawal options if available. MGUC utilizes this service, when available, to balance the system in conjunction with its other firm services dditional details and information, as well as information concerning other available services, is included in Mr. Tyler s Exhibit -18 (DJT-5) Q IN CSE NO. U-18414, THE COMPNY DISCUSSED TWO PROJECTS TO BRING PIPELINE LTERNTIVES TO MGUC S CUSTOMERS. HS MGUC TKEN CTION TO REDUCE COSTS FOR ITS GCR CUSTOMERS? Yes. The projects identified in Case No. U continue to progress and will allow MGUC to utilize lower cost pipelines in the Coldwater and Monroe areas Q PLESE DISCUSS THE PROGRESS ON THE VECTOR PROJECT IN THE COLDWTER RE In the past, MGUC utilized PEPL summer capacity to inject gas into MGUC Storage. Vector Pipeline is a lower cost option. MGUC has signed a Precedent 9

17 greement and an Interconnect greement with Vector Pipeline to construct a new interconnect near Marshall, MI that will allow the displacement of PEPL volumes in the Coldwater region, and specifically for storage injections. This project will reduce costs and improve reliability for GCR customers. The scheduled in-service date for this project is pril 1, 2019 and work is substantially complete on both the Vector and MGUC facilities. The in-service date is expected to be met Q PLESE DESCRIBE THE PROGRESS ON THE NR PROJECT IN THE MONROE RE MGUC has long been constrained on the volume of NR capacity that can be utilized in the Monroe area. The constraint is the meter at Morenci station and, as a result, MGUC is dependent on PEPL to serve much of the winter load in Monroe. MGUC can reduce costs for GCR customers by shifting some supply from PEPL to NR ML7 capacity. MGUC is working with NR to increase the meter size at Morenci, thereby reducing the Company s dependence on PEPL supply in the winter. In addition to reducing costs, this project also improves the reliability of supply in Monroe. The scheduled in-service date for this project is November 1, Pre-work preparation has begun and construction will occur in the summer of Q WHT BENEFITS WILL GCR CUSTOMERS DERIVE FROM THE INFRSTRUCTURE PROJECTS IN COLDWTER ND MONROE? 10

18 MGUC customers will gain an additional pipeline interconnect which improves future opportunities and provides pipeline competition and reliability in the Coldwater area. While no additional pipeline is interconnected in Monroe, the meter project results in NR becoming a viable (and currently lower cost) alternative for a larger portion of the Company s pipeline requirements. The NR project increases reliability in the Monroe area as well. The benefit to GCR customer costs is most apparent in Exhibit -7 (RTL-7), page 1, where the Total Demand on line 21 is approximately $12.8M. This compares to the cost for of $14.8M in case U Q WILL THESE PROJECTS IMPROVE MGUC CCESS TO MRCELLUS/UTIC SHLE GS? Yes. The Vector interconnect will provide MGUC with one additional pipeline source that is directly connected to the NEXUS and Rover pipelines, which originate in the Marcellus shale area. Every pipeline that MGUC currently ships on is interconnected with pipelines that access Marcellus supply. The displacement of gas into the Midwest from Eastern supply basins has a direct impact on gas costs on the pipelines connected to MGUC s city-gates, so MGUC s customers also realize a pricing benefit Q HS THE PEPL CONTRCT BEEN RENEWED T LOWER VOLUMES? Yes. The transportation agreement with PEPL was renewed in pril, 2018 at a volume of 33,000 dth/day during the winter only. This is a reduction from the prior 11

19 PEPL transportation agreement of 14,000 dth/day in the winter and 14,000 dth/day in the summer. The economic analysis discussed in MGUC s GCR Plan (U-18414) included an analysis of the landed cost of gas. The reduction in PEPL capacity, and its replacement with Vector (summer) and NR (winter) was shown to be beneficial to GCR customers. 6 7 Q RE THE COSTS OF THE INFRSTRUCTURE PROJECTS IN COLDWTER ND MONROE INCLUDED IN THIS GCR PLN? The annual costs of these projects are included in the Pipeline Demand/Supply/Reservation Costs shown in Exhibit -7 (RTL-7). Certain onetime costs/investments associated with these projects, however, are not included in the Pipeline Demand/Supply/Reservation Costs. These one-time costs/investments are associated with the construction and installation of certain MGUC-owned assets, like gas odorization equipment, and one-time contributions in aid of construction ( CIC ) made to the pipeline companies. These one-time costs/investments will be recorded as tangible and intangible capital assets in accordance with generally accepted accounting principles ( GP ). MGUC plans to propose to include these tangible and intangible assets in rate base in the Company s next general rate case filing. lthough MGUC plans to seek recovery of these costs/investments in its next general rate case, MGUC understands that similar costs may have been treated as booked costs of gas in other GCR plan cases. MGUC, therefore, seeks input from the other parties, and especially the Commission Staff, regarding the proper ratemaking for recovery of the one-time costs/investments associated with these infrastructure projects from 12

20 1 2 3 customers. If it is determined that rate recovery should be through the GCR, MGUC would be willing to amend the Company s exhibits and requested base GCR factor and Reservation Charge. 4 5 Q HS MGUC RENEWED NY OTHER TRNSPORTION GREEMENTS? Yes. The transportation agreement with DTE Energy for 5,000 dth/day at North Grand Haven was renewed in the spring of This is winter-only capacity and provides peak day coverage at the lowest available transportation rate as shown in Exhibit -3 (RTL-3). Furthermore, as shown in Exhibit -5 (RTL-5), the commodity costs for at MichCon are lower than NR ML7 or Chicago, yielding a lower landed cost of gas Q DOES MGUC CONTINUE TO LOOK T LTERNTIVES FOR PIPELINE TRNSPORTTION ND STORGE? MGUC continually monitors and evaluates pipeline and storage alternatives or replacements to expiring contracts. The following table represents the current results of the vetting and evaluation process used by the Company. Possible lternatives MGUC Possible Service rea Operational Issues and Concerns Relative Cost NR ll None. ML7 lower cost than PEPL long haul capacity, project in place to offset PEPL. Panhandle Coldwater, Monroe None. Currently take service High reservation charge, currently diversifying away from PEPL. 13

21 Q Trunkline Coldwater Load limited in Coldwater; operationally unsatisfactory DTE Western Currently take service, load limited by interconnection; operationally Consumers Western, Coldwater unsatisfactory Load limited, questions on the availability of firm capacity; operationally unsatisfactory Similar to NR SE/SW Similar to NR ML7 Similar to NR ML7 Rover Monroe ~40 mile lateral required Higher transport cost and construction required (2x cost of NR SE/SW) Nexus Monroe Uncertain in-service date Vector Coldwater Load limited to Coldwater Higher transport cost and construction required (2x cost of NR SE/SW) Less than NR ML7, interconnect project in progress. HS MGUC WITNESSED CHNGE IN THE PROPORTION OF GCC CUSTOMERS RELTIVE TO GCR CUSTOMERS OVER THE PST YER? 5 6 No, the proportion of GCC customers relative to GCR customers has remained nearly constant over the past 12 months Q PLESE EXPLIN WHY THE COMPNY CONTRCTS FOR FIRM TRNSPORT FROM PIPELINES The use of firm transportation capacity is the only means by which the Company can ensure deliveries of storage gas and purchased supplies to customers. Without firm capacity, the Company can t reliably meet its Design Peak Day 14

22 1 requirement Q PLESE DESCRIBE THE COMPNY-OWNED UNDERGROUND STORGE FCILITIES MGUC owns, operates and maintains three storage reservoirs: Partello/nderson, Cortright, and Lee 3. These fields, which are located near Marshall in Calhoun County, Michigan, can be further divided into several smaller pools or reservoirs. The Company also maintains two compressors with 1,835 combined horsepower and two dehydrators. Peak storage withdrawal from all three fields is about 30,000 Mcf per day with total storage capacity of 2.9 Bcf. Partello/nderson was drilled in 1959 and converted to storage operation in 1971 at a depth of 3,250 feet. Cortright was drilled in 1972 and converted to storage in 1976 at a depth of 3,250 feet. Lee 3 was drilled in 1972 and converted to storage operation in 1992 at a depth of 3,300 feet. MGUC s storage serves the Coldwater district. Exhibit -3 (RTL-3) details additional leased storage service options that are also utilized by MGUC Q PLESE EXPLIN HOW MGUC S OWNED STORGE IS UTILIZED ON PEK DY ND IN SESONL CONTEXT. In the Settlement greement in case U-18154, MGUC agreed to discuss steps it could take to increase the withdrawal rate of gas from its owned storage field during the winter months. It is important to recognize that MGUC s owned storage field is currently only connected in the Coldwater area, so the potential to utilize that storage field is limited by the load in Coldwater. 15

23 Q Q In the Plan year, the MGUC Storage withdrawal plan of approximately 2.45 Bcf will meet approximately 98% of the winter GCR load in Coldwater of 2.50 Bcf. Considering that MGUC Storage seasonal capacity is 2.9 Bcf, there is a volume of storage capacity (approximately 16%) not being withdrawn. While this may appear to be a significant volume of unutilized storage capacity, seasonal storage volumes have much less impact on GCR costs than peak day withdrawal rates. Currently MGUC s owned storage is relied upon to provide 30,000 dth of Coldwater s peak day forecast of 40,692 dth, as shown in Exhibit -4. It is clear that MGUC Storage is a critical component of MGUC s peak day coverage for Coldwater, and covering the peak day forecast is the primary driver behind the Company s acquisition of storage, transport, and commodity derivative purchases. Since 100% of available MGUC Storage is needed to provide coverage on a peak day, the opportunity for economic projects diminishes significantly. IS MGUC CONSIDERING PROJECTS TO INCRESE THE WITHDRWL RTE OF ITS OWNED STORGE? Not currently. The withdrawal rate on a peak day is largely a function of the geology and infrastructure present at the storage field. The Company will continue to look at opportunities; however there must be an economic benefit to GCR customers in doing so. IS MGUC CONSIDERING PROJECTS TO MORE FULLY UTILIZE MGUC STORGE ON SESONL BSIS? 16

24 The Company has briefly discussed various alternatives, however given the lack of an economic benefit to GCR customers, nothing has been pursued. Consider the following illustrative examples. MGUC Owned Storage: Potential to Increase Seasonal Utilization 5 Project Compression into PEPL Compression into Vector plus Western Interconnect Estimated Capital Cost $5-10M $10-15M Estimated Transport Capacity Cost $0.47/dth-day x 3,300dth x 151 days = $234,201 $0.10/dth-day x 3,300dth x 151 days = $49,830 Commodity Savings (Winter/Summer Spread) 500,000 dth x ($0.23) (Exhibit -5, page 1) = ($115,000) 500,000 dth x ($0.23) (Exhibit -5, page 1) = ($115,000) nnual Benefit to GCR Customers Negative Negative Q PLESE DESCRIBE THE COMPNY S LESED STORGE SERVICE SSETS. The Company s leased storage service assets are used for system balancing, withdrawal season supply, and Design Peak Day demand for GCR and GCC customers. MGUC has two contracts with NR: (1) Contract No with maximum storage quantity of 3,150,700 dth, 63,199 dth per day withdrawal, and 18,057 dth per day injection capability; and (2) Contract No with maximum storage quantity of 756,350 dth, 15,171 dth per day withdrawal, and 4,335 dth per day injection capability. Unlike MGUC s owned storage, the NR storage is deliverable to all areas of the MGUC service territory and is the Company s primary means of balancing supply and demand, day-to-day, through 17

25 Q Q nominations. MGUC is also able to contract for NR NNS since it has NR storage. This service provides a means for dealing with the difference between nominated supply and actual usage. The storage assets, in conjunction with NR NNS service, are imperative to maintain system integrity and to respond to weather pattern changes and customer consumption fluctuations. Exhibit -3 (RTL-3) shows additional detail regarding these services. RE NY MJOR MINTENNCE OR CONSTRUCTION PROJECTS SCHEDULED DURING THE GCR PERIOD THT COULD FFECT GS SUPPLY? Yes, the Vector and NR projects discussed previously have been undertaken to improve gas supply flexibility and reduce costs for MGUC s customers. In addition, there are several smaller projects planned that continue to allow MGUC to operate safely and reliably. MGUC plans to perform equipment installation or maintenance at the following locations; Partello, South Haven, llegan, Gun Plains, South Grand Haven, and Dundee. WILL THE COMPNY UTILIZE NY SUPPLY SERVICES NOT LREDY DISCUSSED? Yes, MGUC will utilize winter term purchases, physical call/swing options, and sset Management greements ( M ) as it has in the past. MGUC uses M to maximize the value of certain transportation assets by releasing the capacity to an asset manager in exchange for compensation, baseload volumes and/or an associated physical call/swing option. 18

26 Q Q Q SUPPLY PLN: STORGE MNGEMENT, DESIGN PEK DY ND SUPPLY PURCHSE STRTEGY FOR THE GCR PERIOD STORGE MNGEMENT PLN DESCRIBE THE PURPOSE OF THE COMPNY S STORGE SSETS. MGUC utilizes storage to provide natural gas deliverability during periods of high demand and for operational flexibility in balancing MGUC s system year round. In addition to operational benefits, storage provides a physical price hedge for customers by reducing the amount of gas purchased in winter and increasing the amount purchased in the summer. WHT PERCENTGE OF THE TOTL WINTER DEMND WILL BE SUPPLIED FROM STORGE DURING THE PERIOD? NR and MGUC-owned storage are planned to be utilized at a level of approximately 33% of annual sales. During the winter period (November 2019 through March 2020), approximately 44% of the gas provided to the Company s GCR customers is planned to come from MGUC s storage assets. HOW DOES MGUC PLN TO UTILIZE ITS STORGE INVENTORY DURING THE WINTER SESON? MGUC has selected the following inventory target levels in order to assure deliverability throughout the winter months (under normal weather conditions). MGUC will adjust its purchases based on these inventory targets. NR 3.4 Bcf MGUC 2.4 Bcf Nov. 30 3,339,021 Mcf 2,131,988 Mcf Dec. 31 2,559,021 Mcf 1,681,988 Mcf 19

27 Q Q Q Q Jan. 31 1,779,021 Mcf 1,086,988 Mcf Feb. 28 1,009,021 Mcf 551,988 Mcf Mar ,021 Mcf 136,988 Mcf HOW DOES MGUC PLN TO MNGE STORGE WITH RESPECT TO BNORML WETHER CONDITIONS? When warmer or colder than normal weather results in storage balances that deviate significantly from planned levels, MGUC will take action to bring inventory into closer alignment. These actions include, but are not limited to, adjusting monthly baseload purchases, buying or selling infield gas inventory, and buying or selling gas in the day market. It is critical during colder than normal periods that the Company retains the ability to withdraw adequate supply to meet customer demand. HOW DOES MGUC PLN TO DJUST STORGE INJECTIONS DURING THE SUMMER IF END OF WINTER BLNCES DIFFER FROM THE PLN? The Company will adjust injections over the season on a pro rata basis to bring storage balances into alignment. DOES MGUC PLN TO MKE INJECTIONS INTO STORGE DURING THE NOVEMBER THROUGH MRCH WINTER PERIOD? Yes, but injections are typically made as part of the NR NNS daily balancing service or for operational needs during warmer than normal weather. DESIGN PEK DY PLN WHT IS THE COMPNY S DESIGN PEK DY LOD 20

28 Q Q Q REQUIREMENT? s shown in Exhibit -11 (KRK-1) the Design Peak Day load requirement is 214,906 Mcf. This load includes the Design Peak Day requirements for GCR customers for whom MGUC provides supply service and also the Design Peak Day requirements for GCC customers for whom MGUC must serve as the Supplier of Last Resort ( SOLR ). PLESE DESCRIBE MGUC S PLN FOR MEETING THE DESIGN PEK DY LOD REQUIREMENT FOR THE PERIOD. MGUC holds firm transportation capacity, firm supply, and storage to ensure it can meet peak load requirements. Exhibit -4 (RTL-4) summarizes MGUC s plan for meeting GCR and GCC customer load in a Design Peak Day scenario. HOW RE CLL OR SWING SUPPLY PCKGES SELECTED? MGUC uses a Request for Proposal ( RFP ) process, which seeks competitive bids from service providers who have NESB agreements with MGUC. The bids are analyzed against the company s requirements, and awarded based on reliability, conformity, and price. IS MGUC REQUIRED TO SERVE GS CHOICE CUSTOMERS IN DESIGN PEK DY SCENRIO? Yes, MGUC is required to have assets sufficient to meet GCR customer and GCC Design Peak Day loads. The Design Peak Day analysis includes both GCR and GCC volumes, so customer movement between (to and from) GCR service and GCC service has no effect on the Design Peak Day forecast. 21

29 Q Q Q WILL MGUC S DESIGN PEK DY SUPPLY COVER TRNSPORTTION CUSTOMERS? No, it will not. The MGUC Design Peak Day forecast of 214,906 Mcf is based upon providing firm service for GCR and GCC customers only. MGUC does not provide SOLR service to Transportation customers. s such, there are no firm demand charges paid by Transportation customers. To ensure that no such supply coverage will occur, MGUC implemented Daily Balancing of its end use Transportation customers effective July 1, (See MGUC M.P.S.C. No. 2 Gas tariff, Original Sheet No. E-14.01). SUPPLY PURCHSE STRTEGY PLESE DESCRIBE THE COMPNY S OVERLL SUPPLY PURCHSE STRTEGY. MGUC makes all planned natural gas purchases at monthly index based prices. Financial hedging is performed on 20% of these purchases to mitigate price volatility. The Company uses physical gas storage to provide seasonal price protection and operational flexibility. Daily purchases and sales, while not planned, may be required occasionally to meet operational requirements. WHT RE MGUC S OBJECTIVES WITH RESPECT TO GS SUPPLY? (1) Provide safe, reliable, cost-effective service to customers; (2) Participate in regulatory proceedings to develop and negotiate services, rate design, and tariff provisions which are equitable to MGUC customers; (3) Evaluate alternative pipeline, storage, and supply opportunities; (4) Contract for a portfolio of services 22

30 Q Q and supplies to effectively cover Design Peak Day conditions for GCR and GCC; and (5) Manage price volatility through the use of physical storage and financial hedging. PLESE DESCRIBE MGUC S FINNCIL HEDGING PROGRM FOR THE GCR PERIOD. During the Company will hedge approximately 20% of its annual supply requirement. Mr. Kyto explains the hedging methodology in his Direct Testimony and Exhibits. DOES THE COMPNY HVE TERM SUPPLY GREEMENTS OR SSET MNGEMENT GREEMENTS LREDY IN PLCE FOR THE GCR PLN PERIOD? No, term supply agreements and M are typically entered into during February or March for the summer, and between May and ugust for the winter. MGUC expects to enter into both types of agreements during the GCR Period Q DESCRIBE NY SSET MNGEMENT GREEMENTS MGUC IS CONSIDERING ENTERING INTO FOR THE GCR PERIOD? Q The winter PEPL M and the summer and winter NR SW M will be considered. TOTL COST OF GS PLESE DESCRIBE EXHIBIT

31 Q Q Q Exhibit -6 (RTL-6), summarizes the sources of supply for each GCR period from through , including storage injections and withdrawals. PLESE DESCRIBE EXHIBIT -7. Page 1 shows annual commodity and reservation costs for the five GCR periods. Page 2 summarizes local production connected to the MGUC system. Page 3 details GCR supply by source. Page 4 shows commodity and transportation charges for the GCR period. Page 5 details city gate gas costs and reservation costs for the GCR period. Page 6 summarizes storage activity for the GCR period. Pages 7 through 10 detail the GCR Period. Pages 11 through 14 detail the GCR Period. Pages 15 through 18 detail the GCR Period. Pages 19 through 22 detail the GCR Period. IS THE UNRELIZED HEDGING GIN/LOSS SHOWN ON LINE 12 OF EXHIBIT -7, PGE 4, CONSISTENT WITH MR. KYTO S EXHIBIT -12? Yes, this information is based on the November 30, 2017 NYMEX settle, consistent with Mr. Kyto s Direct Testimony and Exhibits. Fixed Cost WHT RE MGUC S TOTL ESTIMTED FIXED COSTS OF GS FOR THE GCR PERIOD? 24

32 The fixed costs are pipeline demand/supply reservation costs listed in Exhibit -3 (RTL-3). These costs are associated with the transport and storage services I described earlier in my testimony. These costs are quantified and totaled in Exhibit -7 (RTL-7), page 1 of 22, line 21. During the GCR period, the total estimated fixed cost of gas supply is anticipated to be $12.82 million. Commodity Cost 8 9 Q WHT PROCESS DID MGUC FOLLOW TO RRIVE T ITS PRICING FORECST IN THE GCR PLN? MGUC used the following process to derive the price forecast in Exhibit -5 (RTL-5) (i) (ii) (iii) Determine a 12 month strip (pril 2019-March 2020) using the average of the closing prices from the first five business days of December 2018 (Exhibit -5 (RTL-5), page 1 of 3). Using the forward basis curve from December 7, 2018, prices were calculated for the various supply locations where MGUC will purchase gas (Exhibit -5 (RTL-5) page 2 of 3, lines 63-65). pply transport costs to calculate a delivered citygate price per Mcf. lternative Fuels Comparison Q IS THE MGUC PLN FOR SUPPLYING GS DURING THE GCR PERIOD RESONBLE ND PRUDENT COMPRED TO LTERNTIVE SUPPLY OPTIONS VILBLE TO CUSTOMERS? Yes it is. The following table summarizes alternative heating fuels: 25

33 Fuel Type Cost/Unit Conversion Factor Cost/Therm Heating Oil $3.17/gallon $2.282 Propane $2.05/gallon $2.248 Electricity $ /kWh $3.105 Natural Gas $3.4859/Mcf 10.2 $0.342 The heating oil and the propane prices are from the forecast provided by the Energy Information dministration s Short Term Energy Outlook Table WF01. The electric price is the current DTE residential space heating service rate for winter/over 20 kwh/day. The natural gas price is MGUC s proposed rate in this filing Q Q FIVE YER FORECST WHT RE THE NTICIPTED SOURCES OF SUPPLY FOR THE NEXT FIVE YERS? The source of supply for each GCR Period is found on Exhibit -7 (RTL-7) on the following pages: Page Page Page Page Page 19 WHT PRICING IS USED FOR THE OUT YERS IN THE FIVE-YER FORECST? 26

34 Q Pricing in the four out years includes a 3% annual escalation applied to the NYMEX prices for the twelve months beginning pril The basis differentials are assumed to remain similar. DOES THIS COMPLETE YOUR DIRECT TESTIMONY? Yes it does. 27

35 Case No. U Exhibit -1 (RTL-1) Witness: Russell T. Laursen Page 1 of 1 Service reas and Pipeline/Storage ccessibility Western rea (Group 1) Coldwater rea (Group 2) Monroe rea (Group 3) Benton Harbor (NR) Coldwater (NR, CP, PEPL, TRKL, Monroe (NR, PEPL) Berrien Springs (NR) VECTOR, MGUC) Morenci (NR) Fennville (NR) Coldwater Lake (NR) South Haven (NR) Grand Haven (NR, DTE) Coopersville (NR) Otsego North (NR, CP, Production) Otsego South (NR,CP) NR Storage is deliverable to all three groups MGU Storage is deliverable to Group 2 only

36 Case No: U Exhibit: -2 (RTL-2) Witness: Russell T. Laursen Page: 1 of 1 DTE MGU Storage MGUC Schematic of Supply Options N Grand Haven Fennville Vector Gun Plain Producers Otsego Benton Harbor Consumers Energy Coldwater Producers Monroe Group 1 Group 2 Group 3 Panhandle Pipeline NR SW NR CHICGO NR Storage NR SE

37 MICHIGN PUBLIC SERVICE CORPORTION MICHIGN GS UTILITIES CORPORTION Summary of Gas Supply, Transportation and Storage Contracts U Exhibit -3 (RTL-3) Witness: Russell T. Laursen Page 1 of 2 LINEDESCRIPTION MDQ CQ Contract Expires DEMND CHRGE COMM. RTE (a) (b) (c) (d) (e) FCILITY 1 NR ETS - SOUTHWEST # (Winter) 7,000 1,057,000 3/20 $ x MDQ $ NR ETS - SOUTHWEST # (Summer) 4, ,000 3/20 $ x MDQ $ NR ETS - SOUTHEST # (nnual) 15,000 5,475,000 3/20 $ x MDQ $ TRNSPORTTION 4 NR ETS - STORGE# (Winter) 53,805 8,124,555 3/20 $ x MDQ $ NR ETS - STORGE#110020, (Winter) 8,680 1,310,680 3/20 $ x MDQ $ NR ETS - STORGE# (pril) 33, ,000 3/20 $ x MDQ $ NR ETS - STORGE# (Winter) 15,000 2,265,000 3/23 $ x MDQ $ PNHNDLE - EFT (Winter) # ,000 4,983,000 3/24 $13.41 x MDQ $ NR FTS - CHICGO # (nnual) 5,000 1,825,000 3/23 $ x MDQ $ DTE - # (Winter) 5, ,000 3/21 $ X MDQ $ VECTOR - CHICGO (Summer) 14,000 2,996,000 10/28 $ X MDQ $ NR FSS - # ,199w/18,057i 3,150,700 3/20 $ x CQ capacity only $ STORGE 13 NR NNS - # ,000w/10,000s 3/20 $ x MDQ $ NR FSS - # ,171w/4,335i 756,350 3/23 $ x CQ capacity only $ MGU STORGE 30,000 2,900, Consumers (Cancelled)

38 MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION MGUC sset Summary MGU sset Summary PipeLine Contracts U Exhibit -3 (RTL-3) Witness: Russell T. Laursen Page 2 of 2 Line number PipeLine Contracts Contract No. Contract Type End Date Primary Receipt Point Primary Delivery Point Del. Qty. vailability Demand Commodity 1 NR # ETS 3/31/2020 SW Headstation Group 1 MGU 7,000 winter $ $ NR # ETS 3/31/2020 SW Headstation Group 1 MGU 4,000 summer $ $ NR # ETS 3/31/2020 SE Headstation Group 1 MGU 15,000 annual $ $ NR # ETS 3/31/2020 Storage Group 1 MGU 53,805 winter $ $ NR # ETS 3/31/2020 Storage Group 1 MGU 33,000 pril Only $ $ NR # ETS 3/31/2020 Storage Group 2 MGU 800 winter $ $ NR # ETS 3/31/2020 Storage Group 3 MGU 7,880 winter $ $ NR # NNS 3/31/2020 Storage Group 1 MGU 9,167 summer $ $ NR # NNS 3/31/2020 Storage Group 1 MGU 14,167 winter $ $ NR # NNS 3/31/2020 Storage Group 2 MGU 357 annual $ $ NR # NNS 3/31/2020 Storage Group 3 MGU 476 annual $ $ Transportation NR # ETS 3/31/2023 Storage Group 1 MGU 15,000 winter $ $ NR # FTS 3/31/2023 Chicago Group 1 MGU 5,000 annual $ $ DTE # Firm 3/31/2021 North Grand Haven MGU 5,000 winter $ $ PEPL #17000 EFTS 3/31/2024 KN Grant #1 MGU 8,250 winter $ $ PEPL #17000 EFTS 3/31/2024 Crescendo MGU 9,750 winter $ $ PEPL #17000 EFTS 3/31/2024 South Rattlesnake MGU 15,000 winter $ $ Vector TBD FT-1 10/31/2028 lliance/nbpl/guardian MGU 14,000 summer $ $ Daily Withdrawal Daily Injection 31 NR # FSS 3/31/ ,199 18,057 Storage Res $ / $ Storage 33 NR # FSS 3/31/ ,171 4,335 Storage Res $ / $ Consumers (Cancelled) MGU Storage 30,000 20, Otsego North Production

39 MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION Peak Day Requirement nalysis Case No. U Exhibit -4 (RTL-4) Witness: Russell T. Laursen Page 1 of Western Coldwater Monroe Peak Day (Mcf) 214, ,282 38,538 63,087 Btu factor Peak Day (Dth) 226, ,615 40,692 66,613 LINE Pipe Transport MDQ 1 NR SW ,000 7,000 2 NR Sto ,805 38, ,880 7, ,000 15,000 6 NR SE ,000 15,000 7 NR CHICGO , TBD 25,000 5,000 20,000 8 DTE ,000 5, MGUC Storage 30,000 30, Producers PEPL ,000 3,517 29, Sub Total 177,650 85,970 34,317 57, NR NNS (110025) 15,000 14, Total 192, ,137 34,674 57, Call and or Swing Supply (City-gate) 34,271 19,478 6,018 8, Grand Total 226, ,615 40,692 66,613

40 MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION REGIONL NTURL GS FORECST Case No. U Exhibit -5 (RTL-5) Page 1 of 3 Witness: Russell T. Laursen NYMEX Closing Figures - Five Day verage Date PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR 12/3/2018 $ $ $ $ $ $ $ $ $ $ $ $ /4/2018 $ $ $ $ $ $ $ $ $ $ $ $ /5/2018 $ $ $ $ $ $ $ $ $ $ $ $ /6/2018 $ $ $ $ $ $ $ $ $ $ $ $ /7/2018 $ $ $ $ $ $ $ $ $ $ $ $ verage $2.959 $2.841 $2.856 $2.879 $2.875 $2.850 $2.871 $2.910 $3.064 $3.182 $3.120 $2.896 Escalation factor = 3.0% FUTURES PRICE (Henry Hub): PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.959 $2.841 $2.856 $2.879 $2.875 $2.850 $2.871 $2.910 $3.064 $3.182 $3.120 $ $3.048 $2.926 $2.942 $2.966 $2.961 $2.936 $2.958 $2.998 $3.156 $3.277 $3.214 $ $3.139 $3.014 $3.030 $3.055 $3.050 $3.024 $3.046 $3.088 $3.251 $3.376 $3.310 $ $3.233 $3.104 $3.121 $3.146 $3.142 $3.114 $3.138 $3.180 $3.348 $3.477 $3.409 $ $3.330 $3.198 $3.214 $3.241 $3.236 $3.208 $3.232 $3.276 $3.449 $3.581 $3.512 $3.260 NR LOUISIN BSIS PRICE: Transportation Surcharges: $ Fuel: 1.51% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.802 $2.684 $2.699 $2.723 $2.718 $2.693 $2.715 $2.754 $2.907 $3.025 $2.963 $ $2.891 $2.769 $2.785 $2.809 $2.805 $2.779 $2.801 $2.841 $2.999 $3.120 $3.057 $ $2.982 $2.857 $2.873 $2.898 $2.893 $2.867 $2.889 $2.931 $3.094 $3.219 $3.153 $ $3.077 $2.948 $2.964 $2.990 $2.985 $2.958 $2.981 $3.023 $3.191 $3.320 $3.252 $ $3.174 $3.041 $3.058 $3.084 $3.079 $3.051 $3.075 $3.119 $3.292 $3.424 $3.355 $3.103 NR OKLHOM BSIS PRICE: Transportation Surcharges: $ Fuel: 2.56% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.383 $2.265 $2.280 $2.303 $2.299 $2.274 $2.295 $2.334 $2.488 $2.606 $2.544 $ $2.472 $2.350 $2.365 $2.390 $2.385 $2.359 $2.381 $2.421 $2.580 $2.701 $2.637 $ $2.563 $2.438 $2.454 $2.479 $2.474 $2.448 $2.470 $2.511 $2.675 $2.799 $2.734 $ $2.657 $2.528 $2.545 $2.570 $2.566 $2.538 $2.561 $2.604 $2.772 $2.901 $2.833 $ $2.754 $2.621 $2.638 $2.665 $2.660 $2.632 $2.656 $2.699 $2.873 $3.005 $2.935 $2.684 CHICGO PRICE: Transportation Surcharges: $ Fuel: 0.42% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.828 $2.710 $2.725 $2.748 $2.744 $2.719 $2.740 $2.779 $2.933 $3.051 $2.989 $ $2.917 $2.795 $2.811 $2.835 $2.830 $2.805 $2.827 $2.867 $3.025 $3.146 $3.083 $ $3.008 $2.883 $2.899 $2.924 $2.919 $2.893 $2.915 $2.957 $3.120 $3.245 $3.179 $ $3.102 $2.973 $2.990 $3.015 $3.011 $2.983 $3.007 $3.049 $3.217 $3.346 $3.278 $ $3.199 $3.067 $3.083 $3.110 $3.105 $3.077 $3.101 $3.145 $3.318 $3.450 $3.381 $3.129 PNHNDLE PRICE: Transportation Surcharges: $ Fuel: 4.42% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.322 $2.204 $2.219 $2.243 $2.239 $2.214 $2.235 $2.274 $2.428 $2.545 $2.483 $ $2.411 $2.290 $2.305 $2.329 $2.325 $2.299 $2.321 $2.361 $2.519 $2.641 $2.577 $ $2.503 $2.377 $2.393 $2.418 $2.414 $2.387 $2.410 $2.451 $2.614 $2.739 $2.673 $ $2.597 $2.468 $2.484 $2.510 $2.505 $2.478 $2.501 $2.544 $2.712 $2.840 $2.773 $ $2.694 $2.561 $2.578 $2.604 $2.599 $2.571 $2.595 $2.639 $2.812 $2.944 $2.875 $2.623 MICHCON PRICE: Transportation Surcharges: N Fuel: 1.00% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.774 $2.656 $2.671 $2.694 $2.690 $2.665 $2.686 $2.725 $2.879 $2.996 $2.935 $ $2.862 $2.741 $2.756 $2.780 $2.776 $2.750 $2.772 $2.812 $2.971 $3.092 $3.028 $ $2.954 $2.829 $2.845 $2.869 $2.865 $2.838 $2.861 $2.902 $3.065 $3.190 $3.125 $ $3.048 $2.919 $2.935 $2.961 $2.956 $2.929 $2.952 $2.995 $3.163 $3.291 $3.224 $ $3.145 $3.012 $3.029 $3.055 $3.051 $3.023 $3.046 $3.090 $3.263 $3.396 $3.326 $3.075 CONSUMERS PRICE: Transportation Surcharges: $ Fuel: 1.83% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.804 $2.686 $2.701 $2.724 $2.720 $2.695 $2.716 $2.755 $2.909 $3.026 $2.965 $ $2.892 $2.771 $2.786 $2.810 $2.806 $2.780 $2.802 $2.842 $3.001 $3.122 $3.058 $ $2.984 $2.859 $2.875 $2.899 $2.895 $2.868 $2.891 $2.932 $3.095 $3.220 $3.155 $ $3.078 $2.949 $2.965 $2.991 $2.986 $2.959 $2.982 $3.025 $3.193 $3.321 $3.254 $ $3.175 $3.042 $3.059 $3.085 $3.081 $3.053 $3.076 $3.120 $3.293 $3.426 $3.356 $3.105 NR ML7 Transportation Surcharges: $ Fuel: 0.42% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR $2.952 $2.834 $2.849 $2.872 $2.868 $2.843 $2.864 $2.903 $3.057 $3.175 $3.113 $ $3.041 $2.919 $2.935 $2.959 $2.954 $2.929 $2.951 $2.991 $3.149 $3.270 $3.207 $ $3.132 $3.007 $3.023 $3.048 $3.043 $3.017 $3.039 $3.081 $3.244 $3.369 $3.303 $ $3.226 $3.097 $3.114 $3.139 $3.135 $3.108 $3.131 $3.173 $3.341 $3.470 $3.402 $ $3.323 $3.191 $3.207 $3.234 $3.229 $3.201 $3.225 $3.269 $3.442 $3.574 $3.505 $3.253

41 MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION CLCULTION OF BSIS DIFFERENTIL Case No. U Exhibit -5 (RTL-5) Page 2 of 3 Witness: Russell T. Laursen FUTURES NR NR Line mm/yy SETTLE L OK CHICGO PEPL NR ML7 MICHCON CONSUMERS 1 Nov-13 $ $ $ $ $ $ $ $ Dec-13 $ $ $ $ $ $ $ $ Jan-14 $ $ $ $ $ $ $ $ Feb-14 $ $ $ $ $ $ $ $ Mar-14 $ $ $ $ $ $ $ $ pr-14 $ $ $ $ $ $ $ $ May-14 $ $ $ $ $ $ $ $ Jun-14 $ $ $ $ $ $ $ $ Jul-14 $ $ $ $ $ $ $ $ ug-14 $ $ $ $ $ $ $ $ Sep-14 $ $ $ $ $ $ $ $ Oct-14 $ $ $ $ $ $ $ $ Nov-14 $ $ $ $ $ $ $ $ Dec-14 $ $ $ $ $ $ $ $ Jan-15 $ $ $ $ $ $ $ $ Feb-15 $ $ $ $ $ $ $ $ Mar-15 $ $ $ $ $ $ $ $ pr-15 $ $ $ $ $ $ $ $ May-15 $ $ $ $ $ $ $ $ Jun-15 $ $ $ $ $ $ $ $ Jul-15 $ $ $ $ $ $ $ $ ug-15 $ $ $ $ $ $ $ $ Sep-15 $ $ $ $ $ $ $ $ Oct-15 $ $ $ $ $ $ $ $ Nov-15 $ $ $ $ $ $ $ $ Dec-15 $ $ $ $ $ $ $ $ Jan-16 $ $ $ $ $ $ $ $ Feb-16 $ $ $ $ $ $ $ $ Mar-16 $ $ $ $ $ $ $ $ pr-16 $ $ $ $ $ $ $ $ May-16 $ $ $ $ $ $ $ $ Jun-16 $ $ $ $ $ $ $ $ Jul-16 $ $ $ $ $ $ $ $ ug-16 $ $ $ $ $ $ $ $ Sep-16 $ $ $ $ $ $ $ $ Oct-16 $ $ $ $ $ $ $ $ Nov-16 $ $ $ $ $ $ $ $ Dec-16 $ $ $ $ $ $ $ $ Jan-17 $ $ $ $ $ $ $ $ Feb-17 $ $ $ $ $ $ $ $ Mar-17 $ $ $ $ $ $ $ $ pr-17 $ $ $ $ $ $ $ $ May-17 $ $ $ $ $ $ $ $ Jun-17 $ $ $ $ $ $ $ $ Jul-17 $ $ $ $ $ $ $ $ ug-17 $ $ $ $ $ $ $ $ Sep-17 $ $ $ $ $ $ $ $ Oct-17 $ $ $ $ $ $ $ $ Nov-17 $ $ $ $ $ $ $ $ Dec-17 $ $ $ $ $ $ $ $ Jan-18 $ $ $ $ $ $ $ $ Feb-18 $ $ $ $ $ $ $ $ Mar-18 $ $ $ $ $ $ $ $ pr-18 $ $ $ $ $ $ $ $ May-18 $ $ $ $ $ $ $ $ Jun-18 $ $ $ $ $ $ $ $ Jul-18 $ $ $ $ $ $ $ $ ug-18 $ $ $ $ $ $ $ $ Sep-18 $ $ $ $ $ $ $ $ Oct-18 $ $ $ $ $ $ $ $ FIRST OF MONTH INSIDE FERC PUBLISHED PRICE 62 Forecast Basis NR L NR OK Chicago PEPL NR ML7 MichCon Consumers 63 Winter Summer nnual

42 MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION U Exhibit -5 (RTL-5) Page 3 of 3 Witness: Russell T. Laursen ll BTU at psig unless noted Line PIPELINE & NOTES October November December January February March pril May June July ugust September VG BTU 1 PEPL Reg. vg. 1, , , , , , , , , , , , , NR Reg. vg. Group 1 1, , , , , , , , , , , , , NR Reg. vg. Group 2 1, , , , , , , , , , , , , NR Reg. vg. Group 3 1, , , , , , , , , , , , , NR TOTL VERGE 1, , , , , , , , , , , , , DTE vg (NGH) Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 7 Consumers Power vg. 1,036.9 Note 1 1, ,037.0 Note 1 1, ,036.7 Note 1 1, , , , , PIPELINE VERGE 1, , , , , , , , , , , , ,050.9 Note 1: No Flow, therefore no Btu vailable.

43 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -6 (RTL-6) Page 1 Witness: Russell T. Laursen SUMMRY OF SOURCES OF SUPPLY Dry Line Source of Supply NR ETS - Southeast 4,968,410 4,981,934 4,997,081 5,014,033 5,020,193 2 NR ETS - Southwest 1,812,326 1,812,326 1,812,326 1,812,326 1,812,326 3 NR FTS - Chicago 1,976,564 1,952,891 2,018,134 2,076,262 2,137,247 4 NR ML7 3,224,199 3,493,658 3,183,350 3,212,044 3,224,508 5 Panhandle EFT 3,794,918 3,804,026 3,835,349 3,859,387 3,884,940 6 Vector FT 2,819,511 2,823,996 2,825,698 2,830,589 2,833,108 7 DTE 50,000 50,000 50,000 50,000 50,000 8 Consumers Power Other Production 43,200 43,200 43,200 43,200 43, Total Supplies 18,689,128 18,962,031 18,765,138 18,897,841 19,005,522 Storage Injections 12 NR 3,700,000 3,700,000 3,700,000 3,700,000 3,700, Washington MGU 2,445,000 2,445,000 2,445,000 2,445,000 2,445, Total Storage Injections 6,145,000 6,145,000 6,145,000 6,145,000 6,145,000 Storage Withdrawals 16 NR 3,700,000 3,700,000 3,700,000 3,700,000 3,700, Washington MGU 2,445,000 2,445,000 2,445,000 2,445,000 2,445, Total Storage Withdrawals 6,145,000 6,145,000 6,145,000 6,145,000 6,145, Total GCR Supply 18,689,128 18,962,031 18,765,138 18,897,841 19,005,522

44 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 1 of 22 Witness: Russell T. Laursen SUMMRY OF COST OF GS Line Description Commodity Cost 1 NR ETS - Southeast $4,565,971 $4,736,021 $4,911,172 $5,091,578 $5,277,397 2 NR ETS - Southwest $14,608,945 $15,112,449 $15,637,429 $16,185,476 $16,716,227 3 NR FTS - Chicago $5,986,410 $6,098,145 $6,505,748 $6,908,576 $7,341,634 4 NR ML7 $9,786,986 $10,922,802 $10,256,581 $10,660,776 $11,024,413 5 Panhandle EFT $9,665,659 $10,054,768 $10,518,932 $10,980,081 $11,464,122 6 Vector FT $8,000,838 $8,270,871 $8,540,723 $8,828,999 $9,118,748 7 DTE $155,596 $160,557 $165,667 $170,931 $176,352 8 Consumers Power $0 $0 $0 $0 $0 9 Production $110,448 $114,261 $118,188 $122,233 $126, Other Commodity Charges $459,414 $627,323 $626,035 $628,809 $631, Total Suppliers $53,340,267 $56,097,197 $57,280,475 $59,577,459 $61,876,496 Pipeline Demand/Supply Reservation Costs 12 NR Enhanced Transportation Service (ETS) $2,367,000 $2,367,000 $2,367,000 $2,367,000 $2,367, NR Firm Transportation Service (FTS) $916,640 $916,640 $916,640 $916,640 $916, PEPL Enhanced Firm Transportation (EFT) $2,215,950 $2,215,950 $2,215,950 $2,215,950 $2,215, Vector Firm Transport (FT) $208,662 $208,662 $208,662 $208,662 $208, DTE Transport (FT) $75,665 $75,665 $75,665 $75,665 $75, Washington 10 Storage Service $0 $0 $0 $0 $0 18 NR No-Notice Service (NNS) $996,875 $996,875 $996,875 $996,875 $996, NR Firm Storage Service (FSS) $3,284,258 $3,284,258 $3,284,258 $3,284,258 $3,284, NR ETS Between MGU & NR FSS $2,753,195 $2,753,195 $2,753,195 $2,753,195 $2,753, Total Demand $12,818,245 $12,818,245 $12,818,245 $12,818,245 $12,818, Total Purchased and Produced $66,158,512 $68,915,441 $70,098,720 $72,395,703 $74,694, Net (To)/From Storage ($91,774) ($41,193) ($37,626) ($39,146) ($40,282) 24 Total Cost of Gas $66,066,738 $68,874,248 $70,061,094 $72,356,557 $74,654, Projected (Over) Recovery $ 956, Total Projected GCR Costs $67,022,918 $68,874,248 $70,061,094 $72,356,557 $74,654, Total GCR Supply 18,689,128 18,962,031 18,765,138 18,897,841 19,005,522

45 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION -7 (RTL-7) Page 2 of 22 Witness: Russell T. Laursen LOCL PRODUCTION pril May June July ugust September October November December January February March Total Line Volumes ,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, ,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, ,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, ,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, ,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 Price (1) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Cost (2) $9,265 $8,840 $8,894 $8,978 $8,963 $8,873 $8,950 $9,090 $9,644 $10,067 $9,845 $9,040 $110, $9,584 $9,147 $9,203 $9,289 $9,274 $9,181 $9,260 $9,404 $9,975 $10,411 $10,181 $9,352 $114, $9,914 $9,463 $9,520 $9,610 $9,594 $9,498 $9,579 $9,728 $10,315 $10,765 $10,529 $9,675 $118, $10,253 $9,788 $9,847 $9,940 $9,923 $9,825 $9,908 $10,061 $10,667 $11,129 $10,886 $10,006 $122, $10,602 $10,124 $10,185 $10,279 $10,262 $10,161 $10,247 $10,405 $11,028 $11,505 $11,254 $10,348 $126,400 (1) This gas is priced at MichCon first of month index less $0.20 (2) The cost includes severance and oil and gas taxes

46 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 3 of 22 GCR Supply llocation - Volume 14.65) Witness: Russell T. Laursen Line Sources pr-19 May-19 Jun-19 Jul-19 ug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 TOTL SOURCE OF SUPPLY 1 NR 1,465,590 1,444,485 1,013, , ,955 1,039,760 1,217, , ,314 1,032, , ,886 11,981,499 2 NR ETS SW 113, , , , , , , , , , , ,580 1,812,326 3 NR ETS SE 426, , , , , , , , , , , ,529 4,968,410 4 NR FTS CHI 142, , , , , , , , , ,162 10,777 1,976,564 5 NR ML7 783, , , , , , , ,224,199 6 PEPL , , , , ,495 3,794,918 7 VECTOR 343, , , , , , , ,819,511 8 DTE ,000 20,000 20, ,000 9 CONSUMERS POWER PRODUCTION 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, OTHER TOTL GCR PURCHSES 1,812,463 1,882,085 1,437,270 1,412,078 1,371,555 1,463,360 1,555, ,541 1,690,587 1,949,816 1,820,581 1,346,981 18,689,128 STORGE INJECTIONS pr-19 May-19 Jun-19 Jul-19 ug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 TOTL 13 NR 320, , , , , , , ,700, MGU 200, , , , , , , ,445, TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000, , ,145,000 STORGE WITHDRWLS pr-19 May-19 Jun-19 Jul-19 ug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 TOTL 17 NR , , , , ,000 3,700, MGU 100, , , , , , ,000 2,445, TOTL WITHDRWLS 100, , ,000 1,230,000 1,375,000 1,305,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,392, , , , , ,540 1,085,401 1,866,541 2,920,587 3,324,816 3,125,581 2,511,981 18,689, CCUMULTIVE 1,392,053 2,239,958 2,676,408 3,054,306 3,391,681 3,854,221 4,939,622 6,806,163 9,726,750 13,051,566 16,177,147 18,689,128

47 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 4 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen TOTL MGU Line Sources pr-19 May-19 Jun-19 Jul-19 ug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 TOTL Gas Commodity Charge 1 NR ETS 2 NR ETS SW $ 285,930 $ 280,829 $ 273,570 $ 285,591 $ 285,070 $ 272,874 $ 284,599 $ 490,172 $ 539,885 $ 565,404 $ 498,575 $ 503,473 $ 4,565,971 3 NR ETS SE $ 1,260,956 $ 1,248,118 $ 1,214,606 $ 1,265,974 $ 1,264,021 $ 1,211,996 $ 1,262,254 $ 604,131 $ 1,351,906 $ 1,406,590 $ 1,244,513 $ 1,273,879 $ 14,608,945 4 NR FTS CHI $ 424,194 $ 420,044 $ 408,744 $ 425,996 $ 425,345 $ 407,874 $ 424,756 $ - $ 582,700 $ 1,245,358 $ 1,189,943 $ 31,458 $ 5,986,410 5 NR ML7 $ 2,441,326 $ 2,212,588 $ 997,095 $ 817,518 $ 693,637 $ 1,073,366 $ 1,551,456 $ - $ - $ - $ - $ - $ 9,786,986 6 Total $ 4,412,406 $ 4,161,579 $ 2,894,015 $ 2,795,078 $ 2,668,073 $ 2,966,110 $ 3,523,064 $ 1,094,303 $ 2,474,492 $ 3,217,353 $ 2,933,030 $ 1,808,810 $ 34,948,312 7 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 1,285,432 $ 2,157,043 $ 2,397,617 $ 2,189,772 $ 1,635,796 $ 9,665,659 8 VECTOR $ 1,004,984 $ 1,216,545 $ 1,183,952 $ 1,234,137 $ 1,232,213 $ 1,181,381 $ 947,627 $ - $ - $ - $ - $ - $ 8,000,838 9 DTE $ - $ - $ - $ - $ - $ - $ - $ - $ 30,387 $ 63,257 $ 61,952 $ - $ 155, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 11 PRODUCTION $ 9,265 $ 8,840 $ 8,894 $ 8,978 $ 8,963 $ 8,873 $ 8,950 $ 9,090 $ 9,644 $ 10,067 $ 9,845 $ 9,040 $ 110, OTHER - Unrealized Hedge (Gain)Los $ (47,443) $ (28,013) $ (24,246) $ (22,020) $ (16,590) $ (10,860) $ (9,510) $ (3,270) $ (2,070) $ - $ - $ - $ (164,022) 13 TOTL GS GCR PURCHSES $ 5,379,212 $ 5,358,951 $ 4,062,615 $ 4,016,173 $ 3,892,658 $ 4,145,503 $ 4,470,131 $ 2,385,554 $ 4,669,495 $ 5,688,293 $ 5,194,599 $ 3,453,645 $ 52,716,831 Transportation Commodity Charges NR 14 NR ETS SW $ 2,844 $ 2,939 $ 2,844 $ 2,939 $ 2,939 $ 2,844 $ 2,939 $ 4,977 $ 5,143 $ 5,143 $ 4,645 $ 5,143 $ 45, NR ETS SE $ 9,450 $ 9,765 $ 9,450 $ 9,765 $ 9,765 $ 9,450 $ 9,765 $ 4,607 $ 9,765 $ 9,765 $ 8,820 $ 9,765 $ 110, NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 2,424 $ 4,980 $ 4,857 $ 139 $ 25, NR ML7 $ 10,089 $ 9,525 $ 4,270 $ 3,472 $ 2,950 $ 4,606 $ 6,608 $ 7,984 $ 10,045 $ 10,045 $ 9,916 $ 9,658 $ 89, Total $ 24,213 $ 24,120 $ 18,394 $ 18,067 $ 17,545 $ 18,730 $ 21,203 $ 17,569 $ 27,376 $ 29,933 $ 28,238 $ 24,705 $ 270, PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 24,479 $ 38,475 $ 40,790 $ 38,181 $ 31,344 $ 173, VECTOR $ 471 $ 596 $ 576 $ 596 $ 596 $ 576 $ 459 $ - $ - $ - $ - $ - $ 3, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 22 OTHER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 23 TOTL TRNS CHRGES $ 24,684 $ 24,715 $ 18,970 $ 18,663 $ 18,141 $ 19,306 $ 21,661 $ 42,048 $ 65,851 $ 70,723 $ 66,419 $ 56,049 $ 447, TOTL GS COMMODITY CHRGES$ 5,403,896 $ 5,383,667 $ 4,081,585 $ 4,034,836 $ 3,910,799 $ 4,164,809 $ 4,491,792 $ 2,427,602 $ 4,735,347 $ 5,759,016 $ 5,261,018 $ 3,509,694 $ 53,164,062

48 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 5 of 22 Supply Prices ($ per dry) and Cost of Gas Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total City Gate Commodity Cost 1 Supplier Commodity Cost $ 5,379,212 $ 5,358,951 $ 4,062,615 $ 4,016,173 $ 3,892,658 $ 4,145,503 $ 4,470,131 $ 2,385,554 $ 4,669,495 $ 5,688,293 $ 5,194,599 $ 3,453,645 $ 52,716,831 2 Transportation Commodity Cost $ 24,684 $ 24,715 $ 18,970 $ 18,663 $ 18,141 $ 19,306 $ 21,661 $ 42,048 $ 65,851 $ 70,723 $ 66,419 $ 56,049 $ 447,231 3 Storage Commodity Charges $ 8,850 $ 17,146 $ 16,593 $ 17,146 $ 17,146 $ 16,593 $ 8,850 $ 8,246 $ 10,374 $ 10,374 $ 10,241 $ 9,975 $ 151,535 4 NNS Charges $ 2,392 $ 2,484 $ 1,897 $ 1,864 $ 1,810 $ 1,932 $ 2,054 $ 1,249 $ 2,232 $ 2,574 $ 2,403 $ 1,778 $ 24,670 5 Total $ 5,415,138 $ 5,403,297 $ 4,100,076 $ 4,053,846 $ 3,929,756 $ 4,183,334 $ 4,502,696 $ 2,437,098 $ 4,747,952 $ 5,771,964 $ 5,273,662 $ 3,521,447 $ 53,340,267 Pipeline Demand/Supply/Reservation Costs 6 NR Enhanced Transportation Service (ET $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 2,367,000 7 NR Firm Transportation Service (FTS) $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 916,640 8 NR No-Notice Service (NNS) $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 996,875 9 NR Firm Storage Service (FSS) $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 3,284, NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753, PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215, Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208, DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75, DTE Washington 10 Storage Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 16 Total $ 801,746 $585,642 $585,642 $585,642 $585,642 $585,642 $585,642 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $12,818, Total Purchased and Produced (Line $ 6,216,884 $5,988,939 $4,685,718 $4,639,488 $4,515,398 $4,768,976 $5,088,338 $4,137,627 $6,448,482 $7,472,494 $6,974,192 $5,221,977 $ 66,158, Cost/Mcf of Purchased and Produced $ $ $ $ $ $ $ $ $ $ $ $ $3.5399

49 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 6 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total NR Beginning working gas - Mcf 259, ,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) (3,700,000) 3 -Withdrawals , , , , ,000 3,700,000 4 Ending working gas - Mcf 579,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, ,021 5 Beginning working gas - Cost $689,229 $1,657,930 $3,454,510 $5,178,390 $6,968,220 $8,751,050 $10,473,470 $11,404,661 $9,618,641 $7,371,713 $5,124,785 $2,906, Cost of Gas Injected $968,701 $1,796,580 $1,723,880 $1,789,830 $1,782,830 $1,722,420 $931,191 $0 $0 $0 $0 $0 $10,715, Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 ($1,786,020) ($2,246,928) ($2,246,928) ($2,218,121) ($2,160,508) ($10,658,505) 8 Ending working gas Cost $1,657,930 $3,454,510 $5,178,390 $6,968,220 $8,751,050 $10,473,470 $11,404,661 $9,618,641 $7,371,713 $5,124,785 $2,906,664 $746,156 9 Ending working gas vg. Cost per Mc $2.86 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 $2.88 Washington Beginning working gas - Mcf Injections Withdrawals Ending working gas - Mcf Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 17 Ending working gas Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 18 Ending working gas vg. Cost per Mc $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MGU 19 Beginning working gas - Mcf 136, , ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,681,988 1,086, , Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) (2,445,000) 21 -Withdrawals 100, , , , , , ,000 2,445, Ending working gas - Mcf 237, ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,681,988 1,086, , , Beginning working gas - Cost $378,964 $1,155,064 $2,316,620 $3,447,055 $4,625,399 $5,801,907 $6,929,888 $7,346,497 $6,440,263 $5,080,913 $3,283,550 $1,667, Cost of Gas Injected $587,006 $1,161,556 $1,130,435 $1,178,344 $1,176,508 $1,127,981 $568,475 $0 $0 $0 $0 $0 $6,930, Cost of Withdrawals $189,094 $0 $0 $0 $0 $0 ($151,866) ($906,234) ($1,359,350) ($1,797,363) ($1,616,116) ($1,253,623) ($6,895,458) 26 Ending working gas Cost $1,155,064 $2,316,620 $3,447,055 $4,625,399 $5,801,907 $6,929,888 $7,346,497 $6,440,263 $5,080,913 $3,283,550 $1,667,433 $413, Ending working gas vg. Cost per Mc $4.87 $3.56 $3.28 $3.15 $3.08 $3.04 $3.02 $3.02 $3.02 $3.02 $3.02 $ Net To/(From) Storage $1,744,801 $2,958,136 $2,854,315 $2,968,174 $2,959,338 $2,850,401 $1,347,800 ($2,692,253) ($3,606,278) ($4,044,291) ($3,834,238) ($3,414,131) $91,774 Total 29 Ending working gas - Mcf 816,419 1,850,599 2,851,419 3,885,599 4,919,779 5,920,599 6,391,009 5,471,009 4,241,009 2,866,009 1,561, ,009 41,170, Ending working gas Cost $2,812,994 $5,771,130 $8,625,445 $11,593,619 $14,552,957 $17,403,358 $18,751,158 $16,058,905 $12,452,626 $8,408,335 $4,574,097 $1,159,966 $122,164, Ending working gas vg. Cost per Mc $3.45 $3.12 $3.02 $2.98 $2.96 $2.94 $2.93 $2.94 $2.94 $2.93 $2.93 $2.93 $2.97

50 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 7 of 22 GCR Supply llocation - Volume 14.65) Witness: Russell T. Laursen Line Sources pr-20 May-20 Jun-20 Jul-20 ug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 TOTL SOURCE OF SUPPLY 1 NR 1,480,656 1,424,416 1,001, , ,667 1,035,143 1,518, , ,754 1,047, , ,314 12,240,809 2 NR ETS SW 113, , , , , , , , , , , ,580 1,812,326 3 NR ETS SE 426, , , , , , , , , , , ,529 4,981,934 4 NR FTS CHI 142, , , , , , , , , ,093 9,205 1,952,891 5 NR ML7 798, , , , , , , ,493,658 6 PEPL , , , , ,741 3,804,026 7 VECTOR 346, , , , , , , ,823,996 8 DTE ,000 20,000 20, ,000 9 CONSUMERS POWER PRODUCTION 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, OTHER TOTL GCR PURCHSES 1,830,986 1,862,016 1,425,558 1,393,448 1,380,267 1,458,743 1,857, ,326 1,705,364 1,973,986 1,759,134 1,346,655 18,962,031 STORGE INJECTIONS pr-20 May-20 Jun-20 Jul-20 ug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 TOTL 13 NR 320, , , , , , , ,700, MGU 200, , , , , , , ,445, TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000, , ,145,000 STORGE WITHDRWLS pr-20 May-20 Jun-20 Jul-20 ug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 TOTL 17 NR , , , , ,000 3,700, MGU 100, , , , , , ,000 2,445, TOTL WITHDRWLS 100, , ,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,410, , , , , ,923 1,387,138 1,888,326 2,941,364 3,348,986 3,058,134 2,511,655 18,962, CCUMULTIVE 1,410,576 2,238,412 2,663,150 3,022,418 3,368,505 3,826,428 5,213,566 7,101,892 10,043,256 13,392,242 16,450,376 18,962,031

51 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 8 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen TOTL MGU Line Sources pr-20 May-20 Jun-20 Jul-20 ug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 TOTL Gas Commodity Charge 1 NR ETS 2 NR ETS SW $ 296,582 $ 291,398 $ 283,852 $ 296,302 $ 295,766 $ 283,135 $ 295,280 $ 508,507 $ 559,833 $ 586,118 $ 516,921 $ 522,328 $ 4,736,021 3 NR ETS SE $ 1,300,903 $ 1,287,750 $ 1,253,162 $ 1,306,142 $ 1,304,130 $ 1,250,474 $ 1,302,310 $ 663,841 $ 1,394,652 $ 1,450,976 $ 1,283,825 $ 1,314,284 $ 15,112,449 4 NR FTS CHI $ 437,509 $ 433,254 $ 421,596 $ 439,385 $ 438,714 $ 420,700 $ 438,108 $ - $ 621,526 $ 1,332,571 $ 1,087,069 $ 27,714 $ 6,098,145 5 NR ML7 $ 2,563,096 $ 2,217,289 $ 990,801 $ 783,918 $ 741,666 $ 1,091,373 $ 2,534,659 $ - $ - $ - $ - $ - $ 10,922,802 6 Total $ 4,598,090 $ 4,229,691 $ 2,949,411 $ 2,825,747 $ 2,780,276 $ 3,045,681 $ 4,570,357 $ 1,172,348 $ 2,576,011 $ 3,369,665 $ 2,887,814 $ 1,864,326 $ 36,869,417 7 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 1,355,360 $ 2,260,875 $ 2,514,386 $ 2,222,369 $ 1,701,779 $ 10,054,768 8 VECTOR $ 1,047,594 $ 1,255,590 $ 1,221,936 $ 1,273,709 $ 1,271,727 $ 1,219,288 $ 981,027 $ - $ - $ - $ - $ - $ 8,270,871 9 DTE $ - $ - $ - $ - $ - $ - $ - $ - $ 31,357 $ 65,272 $ 63,928 $ - $ 160, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 11 PRODUCTION $ 9,584 $ 9,147 $ 9,203 $ 9,289 $ 9,274 $ 9,181 $ 9,260 $ 9,404 $ 9,975 $ 10,411 $ 10,181 $ 9,352 $ 114, OTHER - Unrealized Hedge (Gain)Los $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 13 TOTL GS GCR PURCHSES $ 5,655,269 $ 5,494,427 $ 4,180,550 $ 4,108,745 $ 4,061,277 $ 4,274,150 $ 5,560,643 $ 2,537,112 $ 4,878,218 $ 5,959,733 $ 5,184,292 $ 3,575,457 $ 55,469,874 Transportation Commodity Charges NR 14 NR ETS SW $ 2,844 $ 2,939 $ 2,844 $ 2,939 $ 2,939 $ 2,844 $ 2,939 $ 4,977 $ 5,143 $ 5,143 $ 4,645 $ 5,143 $ 45, NR ETS SE $ 9,450 $ 9,765 $ 9,450 $ 9,765 $ 9,765 $ 9,450 $ 9,765 $ 4,907 $ 9,765 $ 9,765 $ 8,820 $ 9,765 $ 110, NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 2,507 $ 5,167 $ 4,302 $ 119 $ 25, NR ML7 $ 10,283 $ 9,266 $ 4,119 $ 3,232 $ 3,063 $ 4,546 $ 10,480 $ 7,984 $ 10,045 $ 10,045 $ 9,916 $ 9,658 $ 92, Total $ 24,407 $ 23,861 $ 18,243 $ 17,827 $ 17,657 $ 18,670 $ 25,075 $ 17,868 $ 27,459 $ 30,120 $ 27,683 $ 24,685 $ 273, PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 24,856 $ 38,856 $ 41,231 $ 37,342 $ 31,401 $ 173, VECTOR $ 476 $ 596 $ 576 $ 596 $ 596 $ 576 $ 460 $ - $ - $ - $ - $ - $ 3, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 22 OTHER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 23 TOTL TRNS CHRGES $ 24,883 $ 24,457 $ 18,819 $ 18,423 $ 18,253 $ 19,247 $ 25,535 $ 42,725 $ 66,315 $ 71,350 $ 65,026 $ 56,086 $ 451, TOTL GS COMMODITY CHRGES$ 5,680,152 $ 5,518,884 $ 4,199,369 $ 4,127,168 $ 4,079,530 $ 4,293,397 $ 5,586,179 $ 2,579,837 $ 4,944,533 $ 6,031,084 $ 5,249,317 $ 3,631,543 $ 55,920,992

52 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 9 of 22 Supply Prices ($ per dry) and Cost of Gas Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total City Gate Commodity Cost 1 Supplier Commodity Cost $ 5,655,269 $ 5,494,427 $ 4,180,550 $ 4,108,745 $ 4,061,277 $ 4,274,150 $ 5,560,643 $ 2,537,112 $ 4,878,218 $ 5,959,733 $ 5,184,292 $ 3,575,457 $ 55,469,874 2 Transportation Commodity Cost $ 24,883 $ 24,457 $ 18,819 $ 18,423 $ 18,253 $ 19,247 $ 25,535 $ 42,725 $ 66,315 $ 71,350 $ 65,026 $ 56,086 $ 451,118 3 Storage Commodity Charges $ 8,850 $ 17,146 $ 16,593 $ 17,146 $ 17,146 $ 16,593 $ 8,850 $ 8,246 $ 10,374 $ 10,374 $ 10,241 $ 9,975 $ 151,535 4 NNS Charges $ 2,417 $ 2,458 $ 1,882 $ 1,839 $ 1,822 $ 1,926 $ 2,452 $ 1,278 $ 2,251 $ 2,606 $ 2,322 $ 1,778 $ 25,030 5 Total $ 5,691,419 $ 5,538,488 $ 4,217,844 $ 4,146,154 $ 4,098,498 $ 4,311,915 $ 5,597,480 $ 2,589,361 $ 4,957,158 $ 6,044,063 $ 5,261,880 $ 3,643,295 $ 56,097,557 Pipeline Demand/Supply/Reservation Costs 6 NR Enhanced Transportation Service (ET $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 2,367,000 7 NR Firm Transportation Service (FTS) $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 916,640 8 NR No-Notice Service (NNS) $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 996,875 9 NR Firm Storage Service (FSS) $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 3,284, NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753, PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215, Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208, DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75, DTE Washington 10 Storage Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 16 Total $ 801,746 $585,642 $585,642 $585,642 $585,642 $585,642 $585,642 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $12,818, Total Purchased and Produced (Line $ 6,493,165 $6,124,130 $4,803,486 $4,731,795 $4,684,140 $4,897,557 $6,183,122 $4,289,891 $6,657,687 $7,744,593 $6,962,410 $5,343,825 $ 68,915, Cost/Mcf of Purchased and Produced $ $ $ $ $ $ $ $ $ $ $ $ $3.6344

53 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 10 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total NR Beginning working gas - Mcf 259, ,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) (3,700,000) 3 -Withdrawals , , , , ,000 3,700,000 4 Ending working gas - Mcf 579,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, ,021 5 Beginning working gas - Cost $746,156 $1,745,172 $3,596,599 $5,373,712 $7,218,164 $9,058,388 $10,834,578 $11,802,877 $9,954,495 $7,629,111 $5,303,727 $3,008, Cost of Gas Injected $999,016 $1,851,427 $1,777,113 $1,844,452 $1,840,224 $1,776,190 $968,299 $0 $0 $0 $0 $0 $11,056, Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 ($1,848,382) ($2,325,384) ($2,325,384) ($2,295,571) ($2,235,946) ($11,030,668) 8 Ending working gas Cost $1,745,172 $3,596,599 $5,373,712 $7,218,164 $9,058,388 $10,834,578 $11,802,877 $9,954,495 $7,629,111 $5,303,727 $3,008,156 $772,209 9 Ending working gas vg. Cost per Mc $3.01 $3.00 $2.99 $2.98 $2.98 $2.98 $2.98 $2.98 $2.98 $2.98 $2.98 $2.98 Washington Beginning working gas - Mcf Injections Withdrawals Ending working gas - Mcf Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 17 Ending working gas Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 18 Ending working gas vg. Cost per Mc $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MGU 19 Beginning working gas - Mcf 136, , ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) (2,445,000) 21 -Withdrawals 100, , , , , , ,000 2,445, Ending working gas - Mcf 237, ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , , Beginning working gas - Cost $413,810 $1,226,077 $2,424,895 $3,591,580 $4,807,689 $6,021,907 $7,186,064 $7,615,282 $6,675,892 $5,248,020 $3,384,897 $1,728, Cost of Gas Injected $605,785 $1,198,818 $1,166,685 $1,216,109 $1,214,218 $1,164,157 $586,698 $0 $0 $0 $0 $0 $7,152, Cost of Withdrawals $206,482 $0 $0 $0 $0 $0 ($157,480) ($939,390) ($1,427,872) ($1,863,123) ($1,656,457) ($1,299,489) ($7,137,330) 26 Ending working gas Cost $1,226,077 $2,424,895 $3,591,580 $4,807,689 $6,021,907 $7,186,064 $7,615,282 $6,675,892 $5,248,020 $3,384,897 $1,728,440 $428, Ending working gas vg. Cost per Mc $5.16 $3.72 $3.41 $3.28 $3.20 $3.15 $3.13 $3.13 $3.13 $3.13 $3.13 $ Net To/(From) Storage $1,811,283 $3,050,245 $2,943,797 $3,060,561 $3,054,442 $2,940,347 $1,397,517 ($2,787,772) ($3,753,256) ($4,188,507) ($3,952,029) ($3,535,435) $41,193 Total 29 Ending working gas - Mcf 816,419 1,850,599 2,851,419 3,885,599 4,919,779 5,920,599 6,391,009 5,471,009 4,235,009 2,860,009 1,561, ,009 41,158, Ending working gas Cost $2,971,249 $6,021,494 $8,965,291 $12,025,853 $15,080,295 $18,020,642 $19,418,159 $16,630,387 $12,877,131 $8,688,624 $4,736,595 $1,201,160 $126,636, Ending working gas vg. Cost per Mc $3.64 $3.25 $3.14 $3.09 $3.07 $3.04 $3.04 $3.04 $3.04 $3.04 $3.03 $3.03 $3.08

54 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 11 of 22 GCR Supply llocation - Volume 14.65) Witness: Russell T. Laursen Line Sources pr-21 May-21 Jun-21 Jul-21 ug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 TOTL SOURCE OF SUPPLY 1 NR 1,482,882 1,408, , , ,119 1,035,734 1,235, , ,781 1,071, , ,714 12,010,891 2 NR ETS SW 113, , , , , , , , , , , ,580 1,812,326 3 NR ETS SE 426, , , , , , , , , , , ,529 4,997,081 4 NR FTS CHI 142, , , , , , , , , ,751 20,605 2,018,134 5 NR ML7 800, , , , , , , ,183,350 6 PEPL , , , , ,982 3,835,349 7 VECTOR 346, , , , , , , ,825,698 8 DTE ,000 20,000 20, ,000 9 CONSUMERS POWER PRODUCTION 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, OTHER TOTL GCR PURCHSES 1,833,267 1,846,397 1,417,605 1,388,892 1,378,719 1,459,334 1,575, ,727 1,732,935 2,007,592 1,772,628 1,361,296 18,765,138 STORGE INJECTIONS pr-21 May-21 Jun-21 Jul-21 ug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 TOTL 13 NR 320, , , , , , , ,700, MGU 200, , , , , , , ,445, TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000, , ,145,000 STORGE WITHDRWLS pr-21 May-21 Jun-21 Jul-21 ug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 TOTL 17 NR , , , , ,000 3,700, MGU 100, , , , , , ,000 2,445, TOTL WITHDRWLS 100, , ,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,412, , , , , ,514 1,105,336 1,910,727 2,968,935 3,382,592 3,071,628 2,526,296 18,765, CCUMULTIVE 1,412,857 2,225,074 2,641,859 2,996,571 3,341,110 3,799,624 4,904,960 6,815,687 9,784,622 13,167,214 16,238,842 18,765,138

55 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 12 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen TOTL MGU Line Sources pr-21 May-21 Jun-21 Jul-21 ug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 TOTL Gas Commodity Charge 1 NR ETS 2 NR ETS SW $ 307,554 $ 302,283 $ 294,442 $ 307,335 $ 306,782 $ 293,703 $ 306,282 $ 527,393 $ 580,379 $ 607,453 $ 535,817 $ 541,749 $ 4,911,172 3 NR ETS SE $ 1,342,048 $ 1,328,571 $ 1,292,875 $ 1,347,514 $ 1,345,442 $ 1,290,106 $ 1,343,568 $ 731,715 $ 1,438,680 $ 1,496,694 $ 1,324,316 $ 1,355,901 $ 15,637,429 4 NR FTS CHI $ 451,224 $ 446,861 $ 434,833 $ 453,176 $ 452,485 $ 433,910 $ 451,860 $ - $ 703,637 $ 1,456,949 $ 1,156,830 $ 63,982 $ 6,505,748 5 NR ML7 $ 2,647,525 $ 2,234,391 $ 995,219 $ 792,834 $ 758,996 $ 1,126,074 $ 1,701,542 $ - $ - $ - $ - $ - $ 10,256,581 6 Total $ 4,748,351 $ 4,312,106 $ 3,017,369 $ 2,900,859 $ 2,863,706 $ 3,143,794 $ 3,803,252 $ 1,259,107 $ 2,722,696 $ 3,561,095 $ 3,016,963 $ 1,961,632 $ 37,310,930 7 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 1,425,733 $ 2,369,393 $ 2,635,291 $ 2,313,506 $ 1,775,009 $ 10,518,932 8 VECTOR $ 1,081,229 $ 1,295,806 $ 1,261,061 $ 1,314,468 $ 1,312,427 $ 1,258,333 $ 1,017,399 $ - $ - $ - $ - $ - $ 8,540,723 9 DTE $ - $ - $ - $ - $ - $ - $ - $ - $ 32,357 $ 67,347 $ 65,963 $ - $ 165, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 11 PRODUCTION $ 9,914 $ 9,463 $ 9,520 $ 9,610 $ 9,594 $ 9,498 $ 9,579 $ 9,728 $ 10,315 $ 10,765 $ 10,529 $ 9,675 $ 118, OTHER - Unrealized Hedge (Gain)Los $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 13 TOTL GS GCR PURCHSES $ 5,839,494 $ 5,617,375 $ 4,287,950 $ 4,224,937 $ 4,185,726 $ 4,411,624 $ 4,830,231 $ 2,694,568 $ 5,134,761 $ 6,274,499 $ 5,406,961 $ 3,746,316 $ 56,654,442 Transportation Commodity Charges NR 14 NR ETS SW $ 2,844 $ 2,939 $ 2,844 $ 2,939 $ 2,939 $ 2,844 $ 2,939 $ 4,977 $ 5,143 $ 5,143 $ 4,645 $ 5,143 $ 45, NR ETS SE $ 9,450 $ 9,765 $ 9,450 $ 9,765 $ 9,765 $ 9,450 $ 9,765 $ 5,243 $ 9,765 $ 9,765 $ 8,820 $ 9,765 $ 110, NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 2,752 $ 5,478 $ 4,440 $ 265 $ 25, NR ML7 $ 10,312 $ 9,065 $ 4,017 $ 3,174 $ 3,043 $ 4,554 $ 6,830 $ 7,984 $ 10,045 $ 10,045 $ 9,916 $ 9,658 $ 88, Total $ 24,436 $ 23,660 $ 18,141 $ 17,768 $ 17,637 $ 18,678 $ 21,425 $ 18,204 $ 27,704 $ 30,431 $ 27,821 $ 24,832 $ 270, PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 25,188 $ 39,246 $ 41,662 $ 37,472 $ 31,549 $ 175, VECTOR $ 476 $ 596 $ 576 $ 596 $ 596 $ 576 $ 462 $ - $ - $ - $ - $ - $ 3, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 22 OTHER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 23 TOTL TRNS CHRGES $ 24,912 $ 24,256 $ 18,717 $ 18,364 $ 18,233 $ 19,254 $ 21,887 $ 43,392 $ 66,950 $ 72,093 $ 65,292 $ 56,381 $ 449, TOTL GS COMMODITY CHRGES$ 5,864,406 $ 5,641,630 $ 4,306,666 $ 4,243,301 $ 4,203,959 $ 4,430,878 $ 4,852,118 $ 2,737,960 $ 5,201,711 $ 6,346,591 $ 5,472,253 $ 3,802,697 $ 57,104,173

56 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 13 of 22 Supply Prices ($ per dry) and Cost of Gas Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total City Gate Commodity Cost 1 Supplier Commodity Cost $ 5,839,494 $ 5,617,375 $ 4,287,950 $ 4,224,937 $ 4,185,726 $ 4,411,624 $ 4,830,231 $ 2,694,568 $ 5,134,761 $ 6,274,499 $ 5,406,961 $ 3,746,316 $ 56,654,442 2 Transportation Commodity Cost $ 24,912 $ 24,256 $ 18,717 $ 18,364 $ 18,233 $ 19,254 $ 21,887 $ 43,392 $ 66,950 $ 72,093 $ 65,292 $ 56,381 $ 449,731 3 Storage Commodity Charges $ 8,850 $ 17,146 $ 16,593 $ 17,146 $ 17,146 $ 16,593 $ 8,850 $ 8,246 $ 10,374 $ 10,374 $ 10,241 $ 9,975 $ 151,535 4 NNS Charges $ 2,420 $ 2,437 $ 1,871 $ 1,833 $ 1,820 $ 1,926 $ 2,080 $ 1,308 $ 2,287 $ 2,650 $ 2,340 $ 1,797 $ 24,770 5 Total $ 5,875,676 $ 5,661,214 $ 4,325,131 $ 4,262,281 $ 4,222,926 $ 4,449,398 $ 4,863,048 $ 2,747,513 $ 5,214,372 $ 6,359,615 $ 5,484,834 $ 3,814,469 $ 57,280,477 Pipeline Demand/Supply/Reservation Costs 6 NR Enhanced Transportation Service (ET $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 2,367,000 7 NR Firm Transportation Service (FTS) $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 916,640 8 NR No-Notice Service (NNS) $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 996,875 9 NR Firm Storage Service (FSS) $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 3,284, NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753, PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215, Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208, DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75, DTE Washington 10 Storage Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 16 Total $ 801,746 $585,642 $585,642 $585,642 $585,642 $585,642 $585,642 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $12,818, Total Purchased and Produced (Line $ 6,677,422 $6,246,856 $4,910,773 $4,847,923 $4,808,568 $5,035,040 $5,448,690 $4,448,043 $6,914,902 $8,060,145 $7,185,364 $5,514,998 $ 70,098, Cost/Mcf of Purchased and Produced $ $ $ $ $ $ $ $ $ $ $ $ $3.7356

57 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 14 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total NR Beginning working gas - Mcf 259, ,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) (3,700,000) 3 -Withdrawals , , , , ,000 3,700,000 4 Ending working gas - Mcf 579,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, ,021 5 Beginning working gas - Cost $772,209 $1,802,158 $3,710,293 $5,542,583 $7,444,785 $9,342,985 $11,175,003 $12,165,825 $10,260,604 $7,863,712 $5,466,821 $3,100, Cost of Gas Injected $1,029,948 $1,908,135 $1,832,290 $1,902,202 $1,898,201 $1,832,018 $990,823 $0 $0 $0 $0 $0 $11,393, Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 ($1,905,221) ($2,396,891) ($2,396,891) ($2,366,162) ($2,304,703) ($11,369,870) 8 Ending working gas Cost $1,802,158 $3,710,293 $5,542,583 $7,444,785 $9,342,985 $11,175,003 $12,165,825 $10,260,604 $7,863,712 $5,466,821 $3,100,659 $795,955 9 Ending working gas vg. Cost per Mc $3.11 $3.09 $3.08 $3.08 $3.07 $3.07 $3.07 $3.07 $3.07 $3.07 $3.07 $3.07 Washington Beginning working gas - Mcf Injections Withdrawals Ending working gas - Mcf Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 17 Ending working gas Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 18 Ending working gas vg. Cost per Mc $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MGU 19 Beginning working gas - Mcf 136, , ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) (2,445,000) 21 -Withdrawals 100, , , , , , ,000 2,445, Ending working gas - Mcf 237, ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , , Beginning working gas - Cost $428,950 $1,268,114 $2,505,311 $3,709,333 $4,964,340 $6,217,400 $7,418,818 $7,861,705 $6,891,917 $5,417,840 $3,494,429 $1,784, Cost of Gas Injected $625,127 $1,237,197 $1,204,022 $1,255,007 $1,253,059 $1,201,419 $605,467 $0 $0 $0 $0 $0 $7,381, Cost of Withdrawals $214,036 $0 $0 $0 $0 $0 ($162,581) ($969,787) ($1,474,077) ($1,923,412) ($1,710,059) ($1,341,539) ($7,367,418) 26 Ending working gas Cost $1,268,114 $2,505,311 $3,709,333 $4,964,340 $6,217,400 $7,418,818 $7,861,705 $6,891,917 $5,417,840 $3,494,429 $1,784,370 $442, Ending working gas vg. Cost per Mc $5.34 $3.84 $3.52 $3.38 $3.31 $3.25 $3.23 $3.23 $3.23 $3.23 $3.23 $ Net To/(From) Storage $1,869,112 $3,145,332 $3,036,312 $3,157,209 $3,151,260 $3,033,436 $1,433,709 ($2,875,009) ($3,870,968) ($4,320,303) ($4,076,221) ($3,646,243) $37,626 Total 29 Ending working gas - Mcf 816,419 1,850,599 2,851,419 3,885,599 4,919,779 5,920,599 6,391,009 5,471,009 4,235,009 2,860,009 1,561, ,009 41,158, Ending working gas Cost $3,070,272 $6,215,604 $9,251,916 $12,409,125 $15,560,385 $18,593,821 $20,027,530 $17,152,521 $13,281,553 $8,961,250 $4,885,029 $1,238,786 $130,647, Ending working gas vg. Cost per Mc $3.76 $3.36 $3.24 $3.19 $3.16 $3.14 $3.13 $3.14 $3.14 $3.13 $3.13 $3.13 $3.17

58 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 15 of 22 GCR Supply llocation - Volume 14.65) Witness: Russell T. Laursen Line Sources pr-22 May-22 Jun-22 Jul-22 ug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 TOTL SOURCE OF SUPPLY 1 NR 1,492,312 1,405, , , ,878 1,041,345 1,246, , ,650 1,092, , ,741 12,114,665 2 NR ETS SW 113, , , , , , , , , , , ,580 1,812,326 3 NR ETS SE 426, , , , , , , , , , , ,529 5,014,033 4 NR FTS CHI 142, , , , , , , , , ,145 28,632 2,076,262 5 NR ML7 810, , , , , , , ,212,044 6 PEPL , , , , ,973 3,859,387 7 VECTOR 348, , , , , , , ,830,589 8 DTE ,000 20,000 20, ,000 9 CONSUMERS POWER PRODUCTION 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, OTHER TOTL GCR PURCHSES 1,844,892 1,842,833 1,417,809 1,390,911 1,382,478 1,464,945 1,589,677 1,013,842 1,759,653 2,035,418 1,784,069 1,371,314 18,897,841 STORGE INJECTIONS pr-22 May-22 Jun-22 Jul-22 ug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 TOTL 13 NR 320, , , , , , , ,700, MGU 200, , , , , , , ,445, TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000, , ,145,000 STORGE WITHDRWLS pr-22 May-22 Jun-22 Jul-22 ug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 TOTL 17 NR , , , , ,000 3,700, MGU 100, , , , , , ,000 2,445, TOTL WITHDRWLS 100, , ,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,424, , , , , ,125 1,119,267 1,933,842 2,995,653 3,410,418 3,083,069 2,536,314 18,897, CCUMULTIVE 1,424,482 2,233,135 2,650,124 3,006,855 3,355,153 3,819,278 4,938,545 6,872,387 9,868,040 13,278,458 16,361,527 18,897,841

59 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 16 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen TOTL MGU Line Sources pr-22 May-22 Jun-22 Jul-22 ug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 TOTL Gas Commodity Charge 1 NR ETS 2 NR ETS SW $ 318,856 $ 313,495 $ 305,349 $ 318,698 $ 318,129 $ 304,589 $ 317,614 $ 546,845 $ 601,542 $ 629,428 $ 555,279 $ 561,753 $ 5,091,578 3 NR ETS SE $ 1,384,427 $ 1,370,617 $ 1,333,779 $ 1,390,128 $ 1,387,994 $ 1,330,927 $ 1,386,063 $ 808,941 $ 1,484,028 $ 1,543,783 $ 1,366,022 $ 1,398,766 $ 16,185,476 4 NR FTS CHI $ 465,351 $ 460,876 $ 448,468 $ 467,380 $ 466,669 $ 447,517 $ 466,025 $ - $ 793,108 $ 1,576,015 $ 1,225,473 $ 91,693 $ 6,908,576 5 NR ML7 $ 2,759,243 $ 2,289,926 $ 1,025,815 $ 823,365 $ 794,256 $ 1,178,339 $ 1,789,833 $ - $ - $ - $ - $ - $ 10,660,776 6 Total $ 4,927,876 $ 4,434,914 $ 3,113,411 $ 2,999,571 $ 2,967,049 $ 3,261,372 $ 3,959,536 $ 1,355,786 $ 2,878,679 $ 3,749,226 $ 3,146,774 $ 2,052,213 $ 38,846,406 7 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 1,496,145 $ 2,477,370 $ 2,753,656 $ 2,405,425 $ 1,847,484 $ 10,980,081 8 VECTOR $ 1,122,764 $ 1,337,228 $ 1,301,358 $ 1,356,451 $ 1,354,348 $ 1,298,549 $ 1,058,301 $ - $ - $ - $ - $ - $ 8,828,999 9 DTE $ - $ - $ - $ - $ - $ - $ - $ - $ 33,386 $ 69,485 $ 68,060 $ - $ 170, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 11 PRODUCTION $ 10,253 $ 9,788 $ 9,847 $ 9,940 $ 9,923 $ 9,825 $ 9,908 $ 10,061 $ 10,667 $ 11,129 $ 10,886 $ 10,006 $ 122, OTHER - Unrealized Hedge (Gain)Los $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 13 TOTL GS GCR PURCHSES $ 6,060,893 $ 5,781,930 $ 4,424,617 $ 4,365,962 $ 4,331,320 $ 4,569,746 $ 5,027,745 $ 2,861,992 $ 5,400,101 $ 6,583,496 $ 5,631,145 $ 3,909,703 $ 58,948,651 Transportation Commodity Charges NR 14 NR ETS SW $ 2,844 $ 2,939 $ 2,844 $ 2,939 $ 2,939 $ 2,844 $ 2,939 $ 4,977 $ 5,143 $ 5,143 $ 4,645 $ 5,143 $ 45, NR ETS SE $ 9,450 $ 9,765 $ 9,450 $ 9,765 $ 9,765 $ 9,450 $ 9,765 $ 5,619 $ 9,765 $ 9,765 $ 8,820 $ 9,765 $ 111, NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 3,007 $ 5,747 $ 4,561 $ 369 $ 26, NR ML7 $ 10,434 $ 9,019 $ 4,019 $ 3,200 $ 3,091 $ 4,626 $ 6,975 $ 7,984 $ 10,045 $ 10,045 $ 9,916 $ 9,658 $ 89, Total $ 24,558 $ 23,614 $ 18,143 $ 17,794 $ 17,686 $ 18,750 $ 21,570 $ 18,580 $ 27,960 $ 30,699 $ 27,942 $ 24,935 $ 272, PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 25,469 $ 39,559 $ 41,981 $ 37,565 $ 31,640 $ 176, VECTOR $ 479 $ 596 $ 576 $ 596 $ 596 $ 576 $ 466 $ - $ - $ - $ - $ - $ 3, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 22 OTHER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 23 TOTL TRNS CHRGES $ 25,036 $ 24,210 $ 18,719 $ 18,390 $ 18,281 $ 19,326 $ 22,036 $ 44,049 $ 67,519 $ 72,680 $ 65,507 $ 56,575 $ 452, TOTL GS COMMODITY CHRGES$ 6,085,929 $ 5,806,140 $ 4,443,337 $ 4,384,352 $ 4,349,601 $ 4,589,072 $ 5,049,780 $ 2,906,041 $ 5,467,620 $ 6,656,176 $ 5,696,652 $ 3,966,278 $ 59,400,979

60 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 17 of 22 Supply Prices ($ per dry) and Cost of Gas Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total City Gate Commodity Cost 1 Supplier Commodity Cost $ 6,060,893 $ 5,781,930 $ 4,424,617 $ 4,365,962 $ 4,331,320 $ 4,569,746 $ 5,027,745 $ 2,861,992 $ 5,400,101 $ 6,583,496 $ 5,631,145 $ 3,909,703 $ 58,948,651 2 Transportation Commodity Cost $ 25,036 $ 24,210 $ 18,719 $ 18,390 $ 18,281 $ 19,326 $ 22,036 $ 44,049 $ 67,519 $ 72,680 $ 65,507 $ 56,575 $ 452,329 3 Storage Commodity Charges $ 8,850 $ 17,146 $ 16,593 $ 17,146 $ 17,146 $ 16,593 $ 8,850 $ 8,246 $ 10,374 $ 10,374 $ 10,241 $ 9,975 $ 151,535 4 NNS Charges $ 2,435 $ 2,433 $ 1,872 $ 1,836 $ 1,825 $ 1,934 $ 2,098 $ 1,338 $ 2,323 $ 2,687 $ 2,355 $ 1,810 $ 24,945 5 Total $ 6,097,214 $ 5,825,719 $ 4,461,801 $ 4,403,334 $ 4,368,573 $ 4,607,599 $ 5,060,728 $ 2,915,625 $ 5,480,317 $ 6,669,237 $ 5,709,248 $ 3,978,063 $ 59,577,459 Pipeline Demand/Supply/Reservation Costs 6 NR Enhanced Transportation Service (ET $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 2,367,000 7 NR Firm Transportation Service (FTS) $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 916,640 8 NR No-Notice Service (NNS) $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 996,875 9 NR Firm Storage Service (FSS) $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 3,284, NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753, PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215, Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208, DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75, DTE Washington 10 Storage Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 16 Total $ 801,746 $585,642 $585,642 $585,642 $585,642 $585,642 $585,642 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $12,818, Total Purchased and Produced (Line $ 6,898,960 $6,411,361 $5,047,443 $4,988,976 $4,954,215 $5,193,241 $5,646,370 $4,616,155 $7,180,846 $8,369,766 $7,409,777 $5,678,593 $ 72,395, Cost/Mcf of Purchased and Produced $ $ $ $ $ $ $ $ $ $ $ $ $3.8309

61 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 18 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total NR Beginning working gas - Mcf 259, ,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) (3,700,000) 3 -Withdrawals , , , , ,000 3,700,000 4 Ending working gas - Mcf 579,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, ,021 5 Beginning working gas - Cost $795,955 $1,857,917 $3,825,056 $5,714,933 $7,677,321 $9,635,813 $11,525,747 $12,547,798 $10,582,758 $8,110,611 $5,638,464 $3,198, Cost of Gas Injected $1,061,962 $1,967,138 $1,889,877 $1,962,389 $1,958,491 $1,889,934 $1,022,051 $0 $0 $0 $0 $0 $11,751, Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 ($1,965,040) ($2,472,147) ($2,472,147) ($2,440,453) ($2,377,065) ($11,726,852) 8 Ending working gas Cost $1,857,917 $3,825,056 $5,714,933 $7,677,321 $9,635,813 $11,525,747 $12,547,798 $10,582,758 $8,110,611 $5,638,464 $3,198,011 $820,946 9 Ending working gas vg. Cost per Mc $3.21 $3.19 $3.18 $3.17 $3.17 $3.17 $3.17 $3.17 $3.17 $3.17 $3.17 $3.17 Washington Beginning working gas - Mcf Injections Withdrawals Ending working gas - Mcf Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 17 Ending working gas Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 18 Ending working gas vg. Cost per Mc $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MGU 19 Beginning working gas - Mcf 136, , ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) (2,445,000) 21 -Withdrawals 100, , , , , , ,000 2,445, Ending working gas - Mcf 237, ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , , Beginning working gas - Cost $442,831 $1,308,842 $2,585,570 $3,828,050 $5,123,122 $6,416,188 $7,655,986 $8,113,008 $7,112,221 $5,591,024 $3,606,130 $1,841, Cost of Gas Injected $645,049 $1,276,728 $1,242,480 $1,295,072 $1,293,066 $1,239,798 $624,800 $0 $0 $0 $0 $0 $7,616, Cost of Withdrawals $220,962 $0 $0 $0 $0 $0 ($167,778) ($1,000,787) ($1,521,196) ($1,984,895) ($1,764,721) ($1,384,422) ($7,602,838) 26 Ending working gas Cost $1,308,842 $2,585,570 $3,828,050 $5,123,122 $6,416,188 $7,655,986 $8,113,008 $7,112,221 $5,591,024 $3,606,130 $1,841,408 $456, Ending working gas vg. Cost per Mc $5.51 $3.97 $3.64 $3.49 $3.41 $3.36 $3.34 $3.34 $3.34 $3.34 $3.34 $ Net To/(From) Storage $1,927,974 $3,243,866 $3,132,357 $3,257,461 $3,251,557 $3,129,732 $1,479,072 ($2,965,827) ($3,993,344) ($4,457,042) ($4,205,174) ($3,761,487) $39,146 Total 29 Ending working gas - Mcf 816,419 1,850,599 2,851,419 3,885,599 4,919,779 5,920,599 6,391,009 5,471,009 4,235,009 2,860,009 1,561, ,009 41,158, Ending working gas Cost $3,166,760 $6,410,626 $9,542,982 $12,800,444 $16,052,001 $19,181,733 $20,660,806 $17,694,978 $13,701,635 $9,244,593 $5,039,419 $1,277,932 $134,773, Ending working gas vg. Cost per Mc $3.88 $3.46 $3.35 $3.29 $3.26 $3.24 $3.23 $3.23 $3.24 $3.23 $3.23 $3.23 $3.27

62 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 19 of 22 GCR Supply llocation - Volume 14.65) Witness: Russell T. Laursen Line Sources pr-23 May-23 Jun-23 Jul-23 ug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 TOTL SOURCE OF SUPPLY 1 NR 1,498,153 1,402, , , ,654 1,043,733 1,251, , ,353 1,099, , ,954 12,194,274 2 NR ETS SW 113, , , , , , , , , , , ,580 1,812,326 3 NR ETS SE 426, , , , , , , , , , , ,529 5,020,193 4 NR FTS CHI 142, , , , , , , , , ,904 30,845 2,137,247 5 NR ML7 816, , , , , , , ,224,508 6 PEPL , , , , ,964 3,884,940 7 VECTOR 350, , , , , , , ,833,108 8 DTE ,000 20,000 20, ,000 9 CONSUMERS POWER PRODUCTION 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43, OTHER TOTL GCR PURCHSES 1,852,254 1,839,750 1,417,767 1,391,837 1,384,254 1,467,333 1,595,333 1,022,415 1,767,572 2,045,315 1,848,174 1,373,518 19,005,522 STORGE INJECTIONS pr-23 May-23 Jun-23 Jul-23 ug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 TOTL 13 NR 320, , , , , , , ,700, MGU 200, , , , , , , ,445, TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000, , ,145,000 STORGE WITHDRWLS pr-23 May-23 Jun-23 Jul-23 ug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 TOTL 17 NR , , , , ,000 3,700, MGU 100, , , , , , ,000 2,445, TOTL WITHDRWLS 100, , ,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,431, , , , , ,513 1,124,923 1,942,415 3,003,572 3,420,315 3,147,174 2,538,518 19,005, CCUMULTIVE 1,431,844 2,237,414 2,654,361 3,012,018 3,362,092 3,828,605 4,953,528 6,895,943 9,899,515 13,319,830 16,467,004 19,005,522

63 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 20 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen TOTL MGU Line Sources pr-23 May-23 Jun-23 Jul-23 ug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 TOTL Gas Commodity Charge 1 NR ETS 2 NR ETS SW $ 330,496 $ 325,044 $ 316,584 $ 330,403 $ 329,817 $ 315,801 $ 329,286 $ 566,880 $ 623,340 $ 652,062 $ 575,326 $ 582,357 $ 5,277,397 3 NR ETS SE $ 1,428,078 $ 1,413,923 $ 1,375,910 $ 1,434,021 $ 1,431,822 $ 1,372,973 $ 1,429,834 $ 854,747 $ 1,530,738 $ 1,592,285 $ 1,408,979 $ 1,442,918 $ 16,716,227 4 NR FTS CHI $ 479,901 $ 475,312 $ 462,512 $ 482,011 $ 481,278 $ 461,533 $ 480,615 $ - $ 837,843 $ 1,651,769 $ 1,426,990 $ 101,872 $ 7,341,634 5 NR ML7 $ 2,862,690 $ 2,348,395 $ 1,056,516 $ 851,281 $ 824,191 $ 1,221,837 $ 1,859,503 $ - $ - $ - $ - $ - $ 11,024,413 6 Total $ 5,101,164 $ 4,562,674 $ 3,211,523 $ 3,097,716 $ 3,067,108 $ 3,372,143 $ 4,099,238 $ 1,421,628 $ 2,991,920 $ 3,896,116 $ 3,411,295 $ 2,127,146 $ 40,359,671 7 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 1,558,979 $ 2,575,712 $ 2,862,816 $ 2,549,775 $ 1,916,841 $ 11,464,122 8 VECTOR $ 1,163,545 $ 1,379,893 $ 1,342,865 $ 1,399,692 $ 1,397,527 $ 1,339,971 $ 1,095,253 $ - $ - $ - $ - $ - $ 9,118,748 9 DTE $ - $ - $ - $ - $ - $ - $ - $ - $ 34,446 $ 71,687 $ 70,219 $ - $ 176, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 11 PRODUCTION $ 10,602 $ 10,124 $ 10,185 $ 10,279 $ 10,262 $ 10,161 $ 10,247 $ 10,405 $ 11,028 $ 11,505 $ 11,254 $ 10,348 $ 126, OTHER - Unrealized Hedge (Gain)Los $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 13 TOTL GS GCR PURCHSES $ 6,275,311 $ 5,952,691 $ 4,564,572 $ 4,507,688 $ 4,474,897 $ 4,722,276 $ 5,204,738 $ 2,991,012 $ 5,613,107 $ 6,842,123 $ 6,042,543 $ 4,054,335 $ 61,245,294 Transportation Commodity Charges NR 14 NR ETS SW $ 2,844 $ 2,939 $ 2,844 $ 2,939 $ 2,939 $ 2,844 $ 2,939 $ 4,977 $ 5,143 $ 5,143 $ 4,645 $ 5,143 $ 45, NR ETS SE $ 9,450 $ 9,765 $ 9,450 $ 9,765 $ 9,765 $ 9,450 $ 9,765 $ 5,755 $ 9,765 $ 9,765 $ 8,820 $ 9,765 $ 111, NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 3,081 $ 5,841 $ 5,150 $ 397 $ 27, NR ML7 $ 10,509 $ 8,980 $ 4,019 $ 3,212 $ 3,114 $ 4,657 $ 7,035 $ 7,984 $ 10,045 $ 10,045 $ 9,916 $ 9,658 $ 89, Total $ 24,633 $ 23,574 $ 18,143 $ 17,806 $ 17,709 $ 18,781 $ 21,630 $ 18,716 $ 28,033 $ 30,793 $ 28,531 $ 24,963 $ 273, PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 25,579 $ 39,660 $ 42,099 $ 38,403 $ 31,640 $ 177, VECTOR $ 481 $ 596 $ 576 $ 596 $ 596 $ 576 $ 467 $ - $ - $ - $ - $ - $ 3, CONSUMERS POWER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 22 OTHER $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 23 TOTL TRNS CHRGES $ 25,114 $ 24,170 $ 18,719 $ 18,402 $ 18,304 $ 19,357 $ 22,097 $ 44,296 $ 67,693 $ 72,893 $ 66,934 $ 56,603 $ 454, TOTL GS COMMODITY CHRGES$ 6,300,425 $ 5,976,861 $ 4,583,291 $ 4,526,090 $ 4,493,202 $ 4,741,633 $ 5,226,835 $ 3,035,307 $ 5,680,800 $ 6,915,016 $ 6,109,477 $ 4,110,939 $ 61,699,875

64 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 21 of 22 Supply Prices ($ per dry) and Cost of Gas Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total City Gate Commodity Cost 1 Supplier Commodity Cost $ 6,275,311 $ 5,952,691 $ 4,564,572 $ 4,507,688 $ 4,474,897 $ 4,722,276 $ 5,204,738 $ 2,991,012 $ 5,613,107 $ 6,842,123 $ 6,042,543 $ 4,054,335 $ 61,245,294 2 Transportation Commodity Cost $ 25,114 $ 24,170 $ 18,719 $ 18,402 $ 18,304 $ 19,357 $ 22,097 $ 44,296 $ 67,693 $ 72,893 $ 66,934 $ 56,603 $ 454,581 3 Storage Commodity Charges $ 8,850 $ 17,146 $ 16,593 $ 17,146 $ 17,146 $ 16,593 $ 8,850 $ 8,246 $ 10,374 $ 10,374 $ 10,241 $ 9,975 $ 151,535 4 NNS Charges $ 2,445 $ 2,428 $ 1,871 $ 1,837 $ 1,827 $ 1,937 $ 2,106 $ 1,350 $ 2,333 $ 2,700 $ 2,440 $ 1,813 $ 25,087 5 Total $ 6,311,719 $ 5,996,436 $ 4,601,756 $ 4,545,073 $ 4,512,175 $ 4,760,163 $ 5,237,791 $ 3,044,903 $ 5,693,507 $ 6,928,089 $ 6,122,157 $ 4,122,727 $ 61,876,497 Pipeline Demand/Supply/Reservation Costs 6 NR Enhanced Transportation Service (ET $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 184,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 214,750 $ 2,367,000 7 NR Firm Transportation Service (FTS) $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 28,645 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 143,225 $ 916,640 8 NR No-Notice Service (NNS) $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 68,750 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 103,125 $ 996,875 9 NR Firm Storage Service (FSS) $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 273,688 $ 3,284, NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753, PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215, Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208, DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75, DTE Washington 10 Storage Service $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 16 Total $ 801,746 $585,642 $585,642 $585,642 $585,642 $585,642 $585,642 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $1,700,529 $12,818, Total Purchased and Produced (Line $ 7,113,465 $6,582,078 $5,187,398 $5,130,715 $5,097,817 $5,345,805 $5,823,433 $4,745,432 $7,394,037 $8,628,619 $7,822,687 $5,823,256 $ 74,694, Cost/Mcf of Purchased and Produced $ $ $ $ $ $ $ $ $ $ $ $ $3.9302

65 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 22 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen LINE Description pril May June July ugust September October November December January February March Total NR Beginning working gas - Mcf 259, ,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) (3,700,000) 3 -Withdrawals , , , , ,000 3,700,000 4 Ending working gas - Mcf 579,021 1,199,021 1,799,021 2,419,021 3,039,021 3,639,021 3,959,021 3,339,021 2,559,021 1,779,021 1,009, ,021 5 Beginning working gas - Cost $820,946 $1,915,798 $3,943,736 $5,892,905 $7,917,165 $9,937,530 $11,886,835 $12,940,828 $10,914,238 $8,364,657 $5,815,075 $3,298, Cost of Gas Injected $1,094,851 $2,027,939 $1,949,169 $2,024,260 $2,020,365 $1,949,306 $1,053,993 $0 $0 $0 $0 $0 $12,119, Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 ($2,026,590) ($2,549,581) ($2,549,581) ($2,516,894) ($2,451,520) ($12,094,168) 8 Ending working gas Cost $1,915,798 $3,943,736 $5,892,905 $7,917,165 $9,937,530 $11,886,835 $12,940,828 $10,914,238 $8,364,657 $5,815,075 $3,298,181 $846,660 9 Ending working gas vg. Cost per Mc $3.31 $3.29 $3.28 $3.27 $3.27 $3.27 $3.27 $3.27 $3.27 $3.27 $3.27 $3.27 Washington Beginning working gas - Mcf Injections Withdrawals Ending working gas - Mcf Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Cost of Withdrawals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 17 Ending working gas Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 18 Ending working gas vg. Cost per Mc $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 MGU 19 Beginning working gas - Mcf 136, , ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) (2,445,000) 21 -Withdrawals 100, , , , , , ,000 2,445, Ending working gas - Mcf 237, ,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080, , , Beginning working gas - Cost $456,986 $1,350,581 $2,668,025 $3,950,116 $5,286,456 $6,620,728 $7,900,057 $8,371,642 $7,338,951 $5,769,261 $3,721,090 $1,900, Cost of Gas Injected $665,569 $1,317,444 $1,282,091 $1,336,339 $1,334,273 $1,279,329 $644,712 $0 $0 $0 $0 $0 $7,859, Cost of Withdrawals $228,026 $0 $0 $0 $0 $0 ($173,127) ($1,032,691) ($1,569,691) ($2,048,171) ($1,820,979) ($1,428,556) ($7,845,190) 26 Ending working gas Cost $1,350,581 $2,668,025 $3,950,116 $5,286,456 $6,620,728 $7,900,057 $8,371,642 $7,338,951 $5,769,261 $3,721,090 $1,900,111 $471, Ending working gas vg. Cost per Mc $5.69 $4.09 $3.75 $3.60 $3.52 $3.46 $3.44 $3.44 $3.44 $3.44 $3.44 $ Net To/(From) Storage $1,988,446 $3,345,383 $3,231,260 $3,360,599 $3,354,638 $3,228,635 $1,525,578 ($3,059,282) ($4,119,272) ($4,597,752) ($4,337,873) ($3,880,077) $40,282 Total 29 Ending working gas - Mcf 816,419 1,850,599 2,851,419 3,885,599 4,919,779 5,920,599 6,391,009 5,471,009 4,235,009 2,860,009 1,561, ,009 41,158, Ending working gas Cost $3,266,378 $6,611,761 $9,843,021 $13,203,620 $16,558,258 $19,786,893 $21,312,471 $18,253,189 $14,133,917 $9,536,165 $5,198,291 $1,318,215 $139,022, Ending working gas vg. Cost per Mc $4.00 $3.57 $3.45 $3.40 $3.37 $3.34 $3.33 $3.34 $3.34 $3.33 $3.33 $3.33 $3.38

66 STTE OF MICHIGN BEFORE THE MICHIGN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of ) MICHIGN GS UTILITIES CORPORTION ) Case No. U to implement a gas cost recovery plan and factors ) for the 12-month period from pril 2019 through ) March 2020, and for related approvals. ) DIRECT TESTIMONY ND EXHIBITS OF JOHN M. SCHMID ON BEHLF OF MICHIGN GS UTILITIES CORPORTION December 28, 2018

67 INTRODUCTION ND QULIFICTIONS Q PLESE STTE YOUR NME, POSITION ND BUSINESS DDRESS.. My name is John M. Schmid. I am employed by WEC Business Services LLC, a wholly-owned subsidiary of WEC Energy Group, Inc. (WEC). I am a Lead nalyst in the Sales Forecasting Department supporting Michigan Gas Utilities Corporation ( MGUC ) and other regulated wholly-owned utility subsidiaries of WEC. My business address is 231 W. Michigan Street, Milwaukee, WI Q FOR WHOM RE YOU PROVIDING TESTIMONY? 8 I am providing testimony on behalf of MGUC Q PLESE DESCRIBE BRIEFLY YOUR EDUCTIONL, PROFESSIONL, ND UTILITY BCKGROUND. 11 I hold a Bachelor of rts Degree in Economics from The University of Illinois. I was hired by Wisconsin Electric, a predecessor to WEC Energy Group, to perform Electric Load Research in 1992 and added forecasting responsibilities later that 14 decade. I have carried out duties that include various aspects of the development of the short-term and long-term electric, gas, and steam forecasts for WEC s regulated utility subsidiaries, including MGUC. Q WHT IS THE PURPOSE OF YOUR TESTIMONY IN THIS PROCEEDING? I am presenting testimony supporting MGUC s forecast of normal load requirements for the Company s service territory. 2

68 Q Q IN CONNECTION WITH YOUR TESTIMONY, RE YOU SPONSORING NY EXHIBITS? I am sponsoring the following exhibits, all of which were prepared by me or under my direct supervision: Exhibits Contents -8 (JMS-1) GCR & GCC Customer Normal Load. -9 (JMS-2) GCR & GCC Customer Counts -10 (JMS-3) Five-year Forecast of the Normal Load Requirements for the GCR and GCC Customers. PLESE DESCRIBE THE METHODOLOGY MGUC USED TO FORECST THE GCR & GCC CUSTOMER NORML LOD REQUIREMENTS The forecast was developed utilizing a statistical modeling package known as MetrixND from Itron. The forecast process uses a multiplicative approach whereby separate forecasts for customers and average use per customer for each sector are developed first and then the two parts are multiplied together to produce the total sector level energy forecasts. Each sector forecast uses monthly historical data covering the period from January 2007 through September 2018 as inputs into the MetrixND models. The models use a simple, ordinary least squares regression methodology that evaluates historical sales volumes and historical customer counts with historical economic, demographic, weather (heating degree days) and binary variables to account for the winter and summer months, and then project future levels of sales and customers based upon forecasts of these various drivers. Forecasted economic and demographic information used is purchased from Moody s nalytics. The weather variable utilized is Heating Degree Day Base 65 3

69 degrees Fahrenheit (HDD65) that is the weighted average derived from four weather stations: Benton Harbor, Coldwater, Monroe and Grand Rapids. The 15- year normal was defined as the average 15 coldest years in the most recent 16 year historical period. For this forecast, the applicable years are with the warmest year being 2012, and the annual normal HDD65 sums to 6,240 HDD65 for the GCR forecast. In the models, a single unified MGUC System level normal load, which includes both Gas Customer Choice ( GCC or Choice ) and GCR customer load, was forecasted for each sector. This means that all customers and usage, both Choice (GCC) and GCR, are added together for Residential and Small General Services (SGS) respectively when creating MGUC s system level forecasts. These total system level loads are then disaggregated to the GCR and GCC components by trend based expectations for the customer growth and migration between GCR and Choice. Once the total for both GCR and GCC sales is forecasted, it is then allocated to each district by using that district s % of total sales for both GCR and GCC during the prior GCR period. Exhibit -10 (JMS-3) depicts the district level sales. Q PLESE EXPLIN THE METHODOLOGY USED TO DETERMINE THE WEIGHTING OF THE DEGREE DY INFORMTION The forecasted normal load for MGUC s entire territory was derived using weighted average weather data from the four weather stations. The weights were developed by first taking a snapshot of the number of customers by zip code as of October The customer classes included in the weighted average methodology were 4

70 Residential, Small and Large Commercial/Industrial customers. Based on zip code, the quantities of the respective customers were tallied by county, and then each county was assigned to a weather station based on the proximity to the weather station. The weights were then calculated by taking the number-of-customers assigned to each weather station and dividing by the total number-of-customers in the MGU service territory. The resulting weights were: Benton Harbor: 37.4% Coldwater: 15.9% Grand Rapids: 15.4% Monroe: 31.3% Q HVE THERE BEEN NY SIGNIFICNT CHNGES IN TRENDS SINCE MGUC S GCR FORECST? Yes. Total sales for are expected to be 548 MMcf greater than the same period from MGUC s 2018 GCR forecast (comparing Exhibit -8 (JMS-1) with Case No. U Exhibit -8 (MRC-1)). big part of this change, 396 MMcf, is in the Large General Service sector because of an increase in customer base plus a sizeable production increase at one individual customer. Because of this historical shift in Large GS, similar increases over levels in the 2018 GCR forecast are seen for the additional forecast years. side from the step change in the Large GS sector, the overall growth trend in the 2019 GCR forecast is primarily driven by favorable economic estimates, such as projected low natural gas prices, housing increases, employment gains and growth of personal income. 23 Q Does this complete your direct testimony? 24 Yes, it does. 5

71 Total GCR Sales Volume by Rate Class Case No. U Fcst JMS Exhibit -8 (JMS-1) MCF - Calendar Month GCR Sales Page 1 of 3 Witness: John M. Schmid MOS. pril May June July ugust September October November December January February March TOTL Res 906, , , , , , ,395 1,235,817 1,984,974 2,263,230 2,127,169 1,704,663 12,336,246 MulF Small GS 396, , , , , , , , , , , ,622 5,357,715 Large GS 70,499 60,450 54,765 48,819 45,617 48,047 52,700 60,420 74,801 80,636 84,267 79, ,167 Gas Light ,000 Total 1,373, , , , , ,140 1,073,601 1,845,141 2,885,487 3,284,516 3,086,781 2,480,681 18,457,128 1,373, , , , , ,890 1,073,351 1,844,891 2,885,237 3,284,266 3,086,531 2,480, MOS. pril May June July ugust September October November December January February March TOTL Res 916, , , , , , ,147 1,260,442 2,012,313 2,294,868 2,079,850 1,710,601 12,376,322 MulF Small GS 405, , , , , , , , , , , ,469 5,305,343 Large GS 69,793 59,232 52,555 47,498 45,756 47,422 52,284 61,310 74,437 80,528 83,415 79, ,265 Gas Light ,000 Total 1,391, , , , , ,623 1,082,738 1,866,726 2,906,064 3,308,485 3,020,034 2,480,355 18,437,930 1,391, , , , , ,373 1,082,488 1,866,476 2,905,814 3,308,235 3,019,784 2,480, MOS. pril May June July ugust September October November December January February March TOTL Res 923, , , , , , ,575 1,278,850 2,033,591 2,319,618 2,084,883 1,716,893 12,451,087 MulF Small GS 400, , , , , , , , , , , ,671 5,328,411 Large GS 69,453 58,646 51,490 46,861 45,823 47,121 52,084 61,739 74,261 80,476 83,004 78, ,940 Gas Light ,000 Total 1,394, , , , , ,214 1,093,336 1,888,927 2,933,335 3,341,692 3,033,428 2,494,796 18,532,438 1,393, , , , , ,964 1,093,086 1,888,677 2,933,085 3,341,442 3,033,178 2,494, MOS. pril May June July ugust September October November December January February March TOTL Res 929, , , , , , ,696 1,292,133 2,048,397 2,336,814 2,087,879 1,720,461 12,506,500 MulF Small GS 406, , , , , , , , , , , ,047 5,406,107 Large GS 69,289 58,363 50,976 46,554 45,856 46,975 51,987 61,946 74,176 80,450 82,806 78, ,334 Gas Light ,000 Total 1,405, , , , , ,725 1,107,167 1,911,742 2,959,853 3,369,318 3,044,769 2,504,714 18,663,941 1,405, , , , , ,475 1,106,917 1,911,492 2,959,603 3,369,068 3,044,519 2,504, MOS. pril May June July ugust September October November December January February March TOTL Res 932, , , , , , ,063 1,298,225 2,053,611 2,343,441 2,137,227 1,719,630 12,572,095 MulF Small GS 410, , , , , , , , , , , ,094 5,448,166 Large GS 69,210 58,226 50,728 46,405 45,871 46,905 51,941 62,046 74,136 80,438 82,711 78, ,561 Gas Light ,000 Total 1,413, , , , , ,113 1,112,723 1,920,315 2,967,672 3,379,115 3,108,274 2,506,918 18,770,822

72 Total GCC Sales Volume by Rate Class Case No. U Fcst JMS Exhibit -8 (JMS-1) MCF - Calendar Month GCC Sales Page 2 of 3 Witness: John M. Schmid MOS. pril May June July ugust September October November December January February March TOTL Res 135,159 81,797 36,024 28,889 26,670 37, , , , , , ,771 1,827,906 MulF Small GS 95,536 54,499 31,997 31,224 25,640 36,961 76, , , , , ,000 1,251,564 Large GS Gas Light Total 230, ,296 68,021 60,113 52,310 74, , , , , , ,771 3,079, MOS. pril May June July ugust September October November December January February March TOTL Res 135,506 78,610 34,758 28,169 26,354 37, , , , , , ,382 1,823,210 MulF Small GS 93,810 52,248 30,403 27,259 27,352 35,204 75, , , , , ,258 1,239,470 Large GS Gas Light Total 229, ,858 65,161 55,428 53,706 73, , , , , , ,640 3,062, MOS. pril May June July ugust September October November December January February March TOTL Res 135,789 76,460 33,918 27,702 26,153 37, , , , , , ,031 1,824,670 MulF Small GS 93,675 51,898 29,971 26,886 27,057 35,034 75, , , , , ,267 1,243,018 Large GS Gas Light Total 229, ,358 63,889 54,588 53,210 72, , , , , , ,298 3,067, MOS. pril May June July ugust September October November December January February March TOTL Res 135,947 74,970 33,355 27,393 26,024 37, , , , , , ,362 1,823,512 MulF Small GS 94,368 52,434 30,447 27,388 27,590 35,618 75, , , , , ,711 1,250,499 Large GS Gas Light Total 230, ,404 63,802 54,781 53,614 73, , , , , , ,073 3,074, MOS. pril May June July ugust September October November December January February March TOTL Res 135,807 73,811 32,920 27,137 25,888 37, , , , , , ,267 1,825,492 MulF Small GS 94,750 52,781 30,777 27,698 27,884 35,889 76, , , , , ,813 1,255,468 Large GS Gas Light Total 230, ,592 63,697 54,835 53,772 73, , , , , , ,080 3,080,960

73 Total GCR + GCC Sales Volume by Rate Class Case No. U Fcst JMS Exhibit -8 (JMS-1) MCF - Calendar Month Total Sales (GCR + GCC) Page 3 of 3 Witness: John M. Schmid MOS. pril May June July ugust September October November December January February March TOTL Res 1,041, , , , , , ,562 1,419,420 2,278,628 2,597,491 2,441,199 1,956,434 14,164,152 MulF Small GS 492, , , , , , , ,763 1,016,457 1,157,772 1,077, ,622 6,609,279 Large GS 70,499 60,450 54,765 48,819 45,617 48,047 52,700 60,420 74,801 80,636 84,267 79, ,167 Gas Light ,000 Total 1,604, , , , , ,982 1,253,953 2,156,853 3,370,136 3,836,149 3,602,857 2,893,452 21,536, MOS. pril May June July ugust September October November December January February March TOTL Res 1,052, , , , , , ,486 1,446,596 2,308,539 2,632,174 2,385,406 1,961,983 14,199,532 MulF Small GS 498, , , , , , , ,282 1,010,465 1,150,798 1,056, ,727 6,544,813 Large GS 69,793 59,232 52,555 47,498 45,756 47,422 52,284 61,310 74,437 80,528 83,415 79, ,265 Gas Light ,000 Total 1,621, , , , , ,677 1,263,105 2,180,438 3,393,691 3,863,750 3,525,580 2,892,995 21,500, MOS. pril May June July ugust September October November December January February March TOTL Res 1,059, , , , , , ,667 1,466,666 2,331,419 2,658,881 2,389,670 1,967,924 14,275,757 MulF Small GS 494, , , , , , , ,239 1,017,691 1,160,585 1,066, ,938 6,571,429 Large GS 69,453 58,646 51,490 46,861 45,823 47,121 52,084 61,739 74,261 80,476 83,004 78, ,940 Gas Light ,000 Total 1,623, , , , , ,079 1,274,635 2,204,894 3,423,621 3,900,192 3,539,392 2,908,094 21,600, MOS. pril May June July ugust September October November December January February March TOTL Res 1,065, , , , , , ,210 1,480,861 2,346,883 2,676,949 2,391,664 1,970,823 14,330,012 MulF Small GS 501, , , , , , , ,423 1,030,468 1,171,657 1,075, ,758 6,656,606 Large GS 69,289 58,363 50,976 46,554 45,856 46,975 51,987 61,946 74,176 80,450 82,806 78, ,334 Gas Light ,000 Total 1,635, , , , , ,156 1,289,615 2,229,480 3,451,777 3,929,306 3,550,262 2,917,787 21,737, MOS. pril May June July ugust September October November December January February March TOTL Res 1,068, , , , , , ,570 1,487,026 2,351,676 2,683,237 2,447,003 1,968,897 14,397,587 MulF Small GS 505, , , , , , , ,923 1,033,124 1,174,850 1,092, ,907 6,703,634 Large GS 69,210 58,226 50,728 46,405 45,871 46,905 51,941 62,046 74,136 80,438 82,711 78, ,561 Gas Light ,000 Total 1,643, , , , , ,719 1,295,368 2,238,245 3,459,186 3,938,775 3,622,346 2,918,998 21,851,782

74 Fcst JMS Total GCR Customer Count By Rate Class Case No. U Exhibit -9 (JMS-2) Page 1 of 3 Witness: John M. Schmid MOS. pril May June July ugust September October November December January February March verage Res 141, , , , , , , , , , , , ,870 MulF Small GS 11,281 11,260 11,213 11,198 11,195 11,187 11,223 11,317 11,376 11,388 11,401 11,389 11,286 Large GS Gas Light Total 153, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 142, , , , , , , , , , , , ,688 MulF Small GS 11,366 11,328 11,273 11,238 11,213 11,188 11,194 11,241 11,264 11,266 11,273 11,271 11,260 Large GS Gas Light Total 153, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 143, , , , , , , , , , , , ,471 MulF Small GS 11,265 11,251 11,225 11,214 11,208 11,201 11,215 11,258 11,287 11,302 11,321 11,334 11,257 Large GS Gas Light Total 154, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 144, , , , , , , , , , , , ,239 MulF Small GS 11,343 11,344 11,334 11,332 11,332 11,331 11,343 11,373 11,390 11,396 11,403 11,406 11,361 Large GS Gas Light Total 155, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 144, , , , , , , , , , , , ,883 MulF Small GS 11,406 11,402 11,392 11,387 11,385 11,383 11,390 11,411 11,425 11,433 11,442 11,448 11,409 Large GS Gas Light Total 156, , , , , , , , , , , , ,352

75 Fcst JMS Total GCC Customer Count By Rate Class Case No. U Exhibit -9 (JMS-2) Page 2 of 3 Witness: John M. Schmid MOS. pril May June July ugust September October November December January February March verage Res 21,131 21,123 21,116 21,108 21,100 21,092 21,084 21,077 21,069 21,069 21,069 21,069 21,092 MulF Small GS 2,717 2,706 2,696 2,685 2,674 2,664 2,653 2,643 2,632 2,632 2,632 2,632 2,664 Large GS Gas Light Total 23,848 23,829 23,812 23,793 23,774 23,756 23,737 23,720 23,701 23,701 23,701 23,701 23, MOS. pril May June July ugust September October November December January February March verage Res 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 MulF Small GS 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 Large GS Gas Light Total 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23, MOS. pril May June July ugust September October November December January February March verage Res 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 MulF Small GS 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 Large GS Gas Light Total 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23, MOS. pril May June July ugust September October November December January February March verage Res 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 MulF Small GS 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 Large GS Gas Light Total 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23, MOS. pril May June July ugust September October November December January February March verage Res 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 21,069 MulF Small GS 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 2,632 Large GS Gas Light Total 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701 23,701

76 Fcst JMS Total Customer Count By Rate Class Case No. U Exhibit -9 (JMS-2) Page 3 of 3 Witness: John M. Schmid MOS. pril May June July ugust September October November December January February March verage Res 162, , , , , , , , , , , , ,962 MulF Small GS 13,998 13,966 13,909 13,883 13,869 13,851 13,876 13,960 14,008 14,020 14,033 14,021 13,950 Large GS Gas Light Total 176, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 163, , , , , , , , , , , , ,757 MulF Small GS 13,998 13,960 13,905 13,870 13,845 13,820 13,826 13,873 13,896 13,898 13,905 13,903 13,892 Large GS Gas Light Total 177, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 164, , , , , , , , , , , , ,540 MulF Small GS 13,897 13,883 13,857 13,846 13,840 13,833 13,847 13,890 13,919 13,934 13,953 13,966 13,889 Large GS Gas Light Total 178, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 165, , , , , , , , , , , , ,308 MulF Small GS 13,975 13,976 13,966 13,964 13,964 13,963 13,975 14,005 14,022 14,028 14,035 14,038 13,993 Large GS Gas Light Total 179, , , , , , , , , , , , , MOS. pril May June July ugust September October November December January February March verage Res 165, , , , , , , , , , , , ,952 MulF Small GS 14,038 14,034 14,024 14,019 14,017 14,015 14,022 14,043 14,057 14,065 14,074 14,080 14,041 Large GS Gas Light Total 179, , , , , , , , , , , , ,053

77 Case No. U MICHIGN GS UTILITIES DISTRICTS Exhibit -10 (JMS-3) Gas nnual Requirements Forecast - Fcst JMS Page 1 of 3 Units:MCF Calendar Sales - GCR Witness: John M. Schmid Benton Berrien Cold- ColdWater Grand Morenci- Otsego- Otsego- South Month Year Harbor Springs Water Lake Coopersville Fennville Haven Monroe City North South Haven Total pr ,130 24, ,663 2,861 48,071 31, , ,003 7,639 59, ,639 56,683 1,373,553 May ,417 12, ,854 2,112 38,843 20, , ,136 4,818 38,949 61,195 30, ,105 Jun ,782 5,888 58, ,740 13,982 70, ,921 1,877 18,003 32,998 15, ,550 Jul ,450 6,155 56, ,892 13,027 57,348 76,736 1,784 16,313 32,356 14, ,798 ug ,399 2,820 47,283 1,831 25,749 9,701 55,272 87,773 1,343 13,996 17,782 8, ,775 Sep ,524 7,027 75, ,316 17,317 83,354 80,990 3,037 23,003 36,671 18, ,140 Oct ,899 9, ,868 2,326 34,343 38, , ,508 4,934 64,538 72,932 33,650 1,073,601 Nov ,504 14, ,289 8,234 41,040 55, , ,437 17, , ,500 52,506 1,845,141 Dec ,321 25, ,832 12,869 62,789 98, , ,971 27, , ,064 96,678 2,885,487 Jan ,630 46, ,063 13,366 68,687 87, , ,879 22, , , ,651 3,284,516 Feb ,819 43, ,799 11,285 71,869 83, , ,036 21, , , ,719 3,086,781 Mar ,797 39, ,601 8,937 62,047 65, , ,194 17, , ,140 86,086 2,480,681 Total 3,278, ,102 3,099,217 65, , ,863 2,601,047 4,908, ,475 1,006,354 1,401, ,069 18,457,128 Total pr ,654 24, ,969 2,895 47,869 32, , ,555 7,756 60, ,471 57,574 1,391,976 May ,996 12, ,997 2,048 38,022 19, , ,205 4,709 38,193 59,884 29, ,236 Jun ,975 5,737 57, ,538 13,645 68, ,035 1,830 17,557 32,193 15, ,938 Jul ,028 5,834 53, ,089 12,165 55,011 74,181 1,676 15,369 29,923 13, ,368 ug ,692 2,880 48,713 1,825 25,889 9,856 56,418 89,684 1,403 14,492 18,384 9, ,387 Sep ,254 6,896 74, ,951 17,079 82,625 81,328 3,002 22,670 36,037 17, ,623 Oct ,193 9, ,850 2,366 34,181 38, , ,488 4,940 64,983 73,257 33,973 1,082,738 Nov ,646 14, ,148 8,395 41,633 56, , ,696 17, , ,211 53,085 1,866,726 Dec ,489 25, ,490 13,040 62,808 99, , ,509 27, , ,774 97,286 2,906,064 Jan ,546 46, ,122 13,541 68,861 87, , ,419 22, , , ,381 3,308,485 Feb ,805 42, ,271 11,034 70,806 81, , ,058 20, , , ,233 3,020,034 Mar ,371 39, ,147 8,964 62,002 65, , ,444 17, , ,823 86,008 2,480,355 Total 3,272, ,435 3,093,152 65, , ,700 2,599,428 4,917, ,344 1,003,873 1,396, ,071 18,437,930 Total pr ,883 24, ,998 2,915 47,728 32, , ,291 7,762 59, ,402 57,570 1,394,157 May ,226 11, ,678 2,003 37,571 19, , ,843 4,619 37,524 58,774 29, ,817 Jun ,689 5,630 56, ,943 13,393 67, ,036 1,796 17,231 31,597 14, ,085 Jul ,152 5,760 52, ,728 12,001 54,328 73,305 1,654 15,166 29,503 13, ,812 ug ,307 2,867 48,471 1,822 25,911 9,816 56,195 89,280 1,393 14,407 18,275 9, ,839 Sep ,308 6,898 74, ,800 17,100 82,758 81,722 3,007 22,688 36,055 17, ,214 Oct ,988 9, ,426 2,397 34,148 38, , ,895 4,980 65,604 73,910 34,331 1,093,336 Nov ,124 14, ,627 8,517 41,981 56, , ,750 17, , ,788 53,716 1,888,927 Dec ,374 25, ,829 13,178 62,957 99, , ,854 27, , ,703 98,213 2,933,335 Jan ,710 47, ,978 13,686 69,116 88, , ,667 22, , , ,676 3,341,692 Feb ,482 42, ,980 11,064 70,711 82, , ,794 20, , , ,825 3,033,428 Mar ,296 39, ,858 9,000 62,092 65, , ,581 17, , ,112 86,573 2,494,796 Total 3,289, ,491 3,109,569 66, , ,649 2,611,772 4,946, ,155 1,009,724 1,403, ,414 18,532,438 Total pr ,079 24, ,102 2,934 47,742 32, , ,961 7,834 60, ,557 58,128 1,405,682 May ,845 11, ,479 1,976 37,381 19, , ,832 4,608 37,610 58,744 29, ,253 Jun ,972 5,617 56, ,690 13,515 67, ,671 1,801 17,409 31,829 15, ,289 Jul ,899 5,803 53, ,581 12,155 54,461 73,320 1,671 15,308 29,988 13, ,831 ug ,265 2,896 49,079 1,824 25,958 9,895 56,716 90,167 1,417 14,617 18,534 9, ,598 Sep ,642 7,028 75, ,778 17,378 83,726 82,221 3,052 23,047 36,706 18, ,725 Oct ,631 9, ,915 2,422 34,199 39, , ,178 5,062 66,523 75,041 34,786 1,107,167 Nov ,881 14, ,631 8,606 42,207 57, , ,815 18, , ,070 54,387 1,911,742 Dec ,399 25, ,371 13,275 63, , , ,803 28, , ,972 99,162 2,959,853 Jan ,969 47, ,138 13,789 69,331 89, , ,654 22, , , ,804 3,369,318 Feb ,781 42, ,364 11,084 70,704 82, , ,843 20, , , ,338 3,044,769 Mar ,350 39, ,768 9,021 62,158 66, , ,572 17, , ,034 86,970 2,504,714 Total 3,315, ,157 3,133,986 66, , ,250 2,628,432 4,975, ,262 1,019,194 1,415, ,568 18,663,941 Total pr ,491 24, ,464 2,946 47,763 32, , ,602 7,881 60, ,308 58,490 1,413,044 May ,475 11, ,259 1,955 37,274 19, , ,292 4,597 37,641 58,677 29, ,270 Jun ,118 5,604 56, ,569 13,586 66, ,356 1,803 17,517 31,961 15, ,247 Jul ,287 5,822 53, ,509 12,235 54,496 73,252 1,680 15,379 30,250 13, ,757 ug ,732 2,909 49,370 1,824 25,980 9,929 56,956 90,572 1,429 14,718 18,657 9, ,374 Sep ,223 7,084 76, ,764 17,498 84,145 82,433 3,072 23,203 36,989 18, ,113 Oct ,662 9, ,872 2,433 34,215 39, , ,610 5,092 66,881 75,467 34,970 1,112,723 Nov ,260 15, ,053 8,646 42,306 57, , ,327 18, , ,802 54,636 1,920,315 Dec ,842 25, ,663 13,309 63, , , ,020 28, , ,585 99,436 2,967,672 Jan ,814 47, ,923 13,829 69,407 89, , ,242 22, , , ,196 3,379,115 Feb ,158 43, ,053 11,343 71,265 84, , ,891 21, , , ,682 3,108,274 Mar ,908 39, ,300 9,019 62,165 66, , ,664 17, , ,320 87,078 2,506,918 Total 3,335, ,630 3,152,712 67, , ,549 2,643,129 5,002, ,062 1,025,339 1,425, ,667 18,770,822

78 Case No. U MICHIGN GS UTILITIES DISTRICTS Exhibit -10 (JMS-3) Gas nnual Requirements Forecast - Fcst JMS Page 2 of 3 Units:MCF Calendar Sales - CHOICE Witness: John M. Schmid Benton Berrien Cold- ColdWater Grand Morenci- Otsego- Otsego- South Month Year Harbor Springs Water Lake Coopersville Fennville Haven Monroe City North South Haven Total pr ,250 4,935 49, ,338 5,627 26,053 38,124 1,715 11,046 25,033 10, ,695 May ,009 2,571 27, ,583 16,520 22,774 1,080 7,218 13,166 5, ,296 Jun ,994 1,159 12, ,643 9,052 12, ,282 7,396 2,846 68,021 Jul ,459 1,136 11, ,410 6,460 8, ,972 7,508 2,303 60,113 ug , , ,080 7,062 11, ,479 3,952 1,466 52,310 Sep ,934 1,426 15, ,283 11,030 7, ,240 8,185 2,739 74,842 Oct ,885 1,844 38, ,262 20,993 32,768 1,551 10,781 15,986 5, ,352 Nov ,898 2,745 66, ,172 9,035 28,856 57,634 2,802 24,504 33,904 9, ,712 Dec ,942 5,481 99,777 1,266 2,747 16,288 45,122 91,082 4,707 31,248 42,978 16, ,649 Jan ,494 8, ,966 1,080 3,064 14,320 55,696 92,582 4,908 33,043 49,597 21, ,633 Feb ,030 8, , ,228 13,799 55,438 86,876 4,781 27,565 52,327 19, ,076 Mar ,725 7,734 89, ,368 10,754 44,904 70,456 3,931 23,323 38,323 14, ,771 Total 782,645 46, ,141 6,261 17,282 89, , ,404 27, , , ,463 3,079,470 Total pr ,981 4,906 49, ,328 5,580 25,878 37,986 1,705 10,924 24,844 10, ,316 May ,616 2,469 26, ,439 15,859 21,871 1,037 6,926 12,639 5, ,858 Jun ,329 1,113 11, ,523 8,668 12, ,130 7,078 2,722 65,161 Jul ,169 1,048 10, ,175 5,948 8, ,717 6,804 2,119 55,428 ug , , ,108 7,254 12, ,564 4,046 1,524 53,706 Sep ,460 1,379 15, ,188 10,728 7, ,115 7,951 2,671 73,054 Oct ,942 1,847 38, ,252 20,938 32,890 1,550 10,746 15,944 5, ,367 Nov ,515 2,768 66, ,179 9,077 29,089 58,104 2,816 24,541 33,988 9, ,712 Dec ,788 5, ,395 1,277 2,763 16,372 45,406 91,687 4,732 31,394 43,198 16, ,627 Jan ,493 8, ,770 1,089 3,082 14,404 56,060 93,253 4,940 33,205 49,905 21, ,265 Feb ,238 8, , ,166 13,547 54,317 84,958 4,680 27,108 51,334 18, ,546 Mar ,677 7,731 89, ,368 10,755 44,894 70,410 3,929 23,333 38,320 14, ,640 Total 778,594 46, ,818 6,256 17,158 88, , ,470 27, , , ,735 3,062,680 Total pr ,029 4,909 49, ,328 5,581 25,891 38,026 1,706 10,922 24,853 10, ,464 May ,938 2,420 26, ,381 15,575 21,403 1,016 6,827 12,412 5, ,358 Jun ,025 1,089 11, ,479 8,501 12, ,078 6,944 2,672 63,889 Jul ,939 1,032 10, ,143 5,858 7, ,677 6,704 2,087 54,588 ug , , ,098 7,187 12, ,539 4,009 1,509 53,210 Sep ,410 1,374 15, ,179 10,697 7, ,102 7,926 2,664 72,865 Oct ,184 1,856 38, ,282 21,036 33,081 1,558 10,795 16,018 5, ,299 Nov ,090 2,789 67, ,187 9,139 29,309 58,545 2,836 24,688 34,201 9, ,967 Dec ,489 5, ,942 1,284 2,778 16,461 45,653 92,186 4,758 31,566 43,434 16, ,286 Jan ,328 8, ,503 1,095 3,100 14,488 56,386 93,796 4,969 33,399 50,196 21, ,500 Feb ,275 8, , ,171 13,572 54,367 84,957 4,683 27,183 51,414 18, ,964 Mar ,812 7,744 89, ,373 10,782 44,977 70,463 3,934 23,413 38,402 14, ,298 Total 779,773 46, ,024 6,269 17,185 88, , ,276 27, , , ,912 3,067,688 Total pr ,216 4,927 49, ,334 5,606 25,993 38,140 1,712 10,979 24,957 10, ,315 May ,643 2,399 25, ,366 15,486 21,172 1,008 6,823 12,341 5, ,404 Jun ,989 1,081 11, ,494 8,496 11, ,103 6,950 2,677 63,802 Jul ,994 1,035 10, ,163 5,881 7, ,692 6,759 2,096 54,781 ug , , ,106 7,242 12, ,565 4,036 1,527 53,614 Sep ,561 1,390 15, ,209 10,794 7, ,142 8,002 2,685 73,431 Oct ,458 1,868 38, ,324 21,181 33,265 1,568 10,871 16,129 5, ,448 Nov ,502 2,804 67, ,194 9,192 29,469 58,863 2,852 24,839 34,407 9, ,738 Dec ,895 5, ,277 1,287 2,788 16,523 45,803 92,474 4,776 31,692 43,598 16, ,924 Jan ,710 8, ,841 1,098 3,108 14,527 56,537 94,044 4,982 33,490 50,331 21, ,988 Feb ,108 8, , ,170 13,570 54,320 84,827 4,677 27,194 51,392 18, ,493 Mar ,731 7,740 89, ,373 10,783 44,960 70,383 3,931 23,430 38,397 14, ,073 Total 781,166 46, ,316 6,272 17,232 88, , ,054 27, , , ,185 3,074,011 Total pr ,259 4,932 49, ,336 5,615 26,025 38,158 1,714 11,004 24,993 10, ,557 May ,398 2,382 25, ,352 15,407 20,983 1,001 6,814 12,278 5, ,592 Jun ,952 1,075 11, ,504 8,487 11, ,120 6,949 2,679 63,697 Jul ,010 1,036 10, ,174 5,888 7, ,699 6,788 2,098 54,835 ug , , ,109 7,264 12, ,576 4,046 1,535 53,772 Sep ,610 1,396 15, ,220 10,828 7, ,157 8,029 2,692 73,606 Oct ,502 1,870 38, ,332 21,210 33,289 1,570 10,886 16,151 5, ,645 Nov ,544 2,806 67, ,195 9,198 29,485 58,895 2,854 24,858 34,431 9, ,930 Dec ,774 5, ,192 1,285 2,786 16,513 45,763 92,387 4,773 31,676 43,572 16, ,514 Jan ,615 8, ,770 1,097 3,106 14,520 56,504 93,978 4,979 33,480 50,304 21, ,660 Feb ,321 8, , ,222 13,788 55,238 86,325 4,758 27,613 52,234 19, ,072 Mar ,455 7,721 89, ,368 10,763 44,859 70,175 3,921 23,401 38,319 14, ,080 Total 782,837 46, ,793 6,280 17,283 89, , ,057 27, , , ,468 3,080,960

79 Case No. U MICHIGN GS UTILITIES DISTRICTS Exhibit -10 (JMS-3) Gas nnual Requirements Forecast - Fcst JMS Page 3 of 3 Units:MCF Calendar Sales - Total GCR Plus Choice Witness: John M. Schmid Benton Berrien Cold- ColdWater Grand Morenci- Otsego- Otsego- South Month Year Harbor Springs Water Lake Coopersville Fennville Haven Monroe City North South Haven Total pr ,380 28, ,489 3,112 49,409 37, , ,127 9,354 70, ,671 67,180 1,604,248 May ,425 14, ,510 2,304 39,722 23, , ,909 5,898 46,167 74,361 36, ,401 Jun ,776 7,047 70, ,055 16,625 79, ,722 2,295 21,285 40,394 18, ,571 Jul ,909 7,291 67,861 1,091 28,259 15,437 63,808 85,396 2,187 19,285 39,863 16, ,911 ug ,426 3,390 56,316 1,916 26,068 10,781 62,334 99,623 1,729 16,475 21,735 10, ,085 Sep ,458 8,453 91, ,836 20,600 94,384 88,787 3,598 27,243 44,856 20, ,982 Oct ,784 10, ,177 2,881 35,308 44, , ,275 6,485 75,319 88,919 39,103 1,253,953 Nov ,402 17, ,631 8,974 42,213 64, , ,071 20, , ,404 61,584 2,156,853 Dec ,263 30, ,609 14,136 65, , , ,053 32, , , ,689 3,370,136 Jan ,123 55, ,029 14,446 71, , , ,461 27, , , ,927 3,836,149 Feb ,849 51, ,075 12,265 75,097 97, , ,912 26, , , ,999 3,602,857 Mar ,521 47, ,193 9,734 64,414 76, , ,650 21, , , ,952 2,893,452 Total 4,061, ,808 3,757,358 71, , ,947 2,928,235 5,441, ,717 1,188,054 1,700, ,532 21,536,598 Total pr ,635 29, ,495 3,147 49,197 37, , ,541 9,461 70, ,315 67,981 1,621,292 May ,613 14, ,549 2,233 38,866 23, , ,076 5,746 45,119 72,523 35, ,094 Jun ,304 6,850 68, ,838 16,168 77, ,306 2,231 20,687 39,271 17, ,099 Jul ,197 6,882 64,134 1,069 27,427 14,340 60,959 82,289 2,048 18,086 36,727 15, ,796 ug ,078 3,460 57,968 1,910 26,220 10,964 63, ,864 1,797 17,056 22,430 10, ,093 Sep ,715 8,275 90, ,452 20,267 93,353 89,080 3,548 26,784 43,988 20, ,677 Oct ,135 11, ,140 2,927 35,139 44, , ,378 6,491 75,728 89,201 39,423 1,263,105 Nov ,160 17, ,902 9,145 42,812 65, , ,799 20, , ,200 62,217 2,180,438 Dec ,277 30, ,885 14,318 65, , , ,196 32, , , ,385 3,393,691 Jan ,039 55, ,892 14,630 71, , , ,672 27, , , ,782 3,863,750 Feb ,043 50, ,271 11,990 73,973 95, , ,016 25, , , ,157 3,525,580 Mar ,048 47, ,710 9,759 64,369 76, , ,854 21, , , ,873 2,892,995 Total 4,051, ,773 3,747,971 72, , ,120 2,924,465 5,449, ,447 1,184,576 1,692, ,806 21,500,610 Total pr ,911 29, ,555 3,167 49,056 37, , ,318 9,468 70, ,255 67,979 1,623,621 May ,165 14, ,726 2,183 38,401 22, , ,246 5,636 44,351 71,186 34, ,175 Jun ,714 6,719 67, ,238 15,872 75, ,062 2,189 20,309 38,541 17, ,974 Jul ,091 6,792 63,275 1,057 27,061 14,144 60,185 81,287 2,020 17,843 36,208 15, ,400 ug ,561 3,441 57,642 1,906 26,239 10,914 63, ,347 1,783 16,946 22,285 10, ,049 Sep ,718 8,272 90, ,300 20,279 93,455 89,466 3,552 26,790 43,982 20, ,079 Oct ,172 11, ,911 2,962 35,110 45, , ,976 6,538 76,398 89,928 39,809 1,274,635 Nov ,213 17, ,857 9,273 43,168 66, , ,295 20, , ,989 62,912 2,204,894 Dec ,864 31, ,771 14,461 65, , , ,041 32, , , ,400 3,423,621 Jan ,038 56, ,481 14,781 72, , , ,463 27, , , ,202 3,900,192 Feb ,757 50, ,090 12,018 73,883 95, , ,751 25, , , ,782 3,539,392 Mar ,108 47, ,562 9,795 64,465 76, , ,044 21, , , ,472 2,908,094 Total 4,069, ,861 3,765,593 72, , ,234 2,937,207 5,478, ,310 1,190,911 1,699, ,326 21,600,126 Total pr ,296 29, ,844 3,187 49,076 38, , ,101 9,547 71, ,514 68,584 1,635,997 May ,488 14, ,338 2,153 38,207 22, , ,003 5,617 44,433 71,085 34, ,657 Jun ,960 6,699 67, ,988 16,009 75, ,663 2,193 20,512 38,779 17, ,091 Jul ,892 6,838 63,641 1,051 26,916 14,319 60,342 81,297 2,039 18,000 36,748 15, ,612 ug ,623 3,472 58,312 1,908 26,290 11,001 63, ,329 1,811 17,181 22,570 10, ,212 Sep ,204 8,417 91, ,283 20,587 94,519 89,975 3,602 27,189 44,708 20, ,156 Oct ,090 11, ,647 2,989 35,169 45, , ,443 6,630 77,393 91,170 40,299 1,289,615 Nov ,383 17, ,239 9,366 43,401 66, , ,677 20, , ,477 63,636 2,229,480 Dec ,295 31, ,648 14,562 65, , , ,277 32, , , ,408 3,451,777 Jan ,679 56, ,979 14,887 72, , , ,698 27, , , ,387 3,929,306 Feb ,889 50, ,383 12,035 73,874 96, , ,670 25, , , ,290 3,550,262 Mar ,081 47, ,424 9,815 64,531 77, , ,955 21, , , ,868 2,917,787 Total 4,096, ,591 3,791,301 72, , ,114 2,954,592 5,508, ,471 1,201,014 1,713, ,753 21,737,952 Total pr ,750 29, ,259 3,198 49,099 38, , ,760 9,595 71, ,301 68,963 1,643,601 May ,873 14, ,957 2,130 38,096 22, , ,275 5,599 44,455 70,955 34, ,862 Jun ,070 6,679 67, ,869 16,090 75, ,316 2,193 20,637 38,910 17, ,944 Jul ,297 6,859 63,804 1,046 26,844 14,410 60,384 81,215 2,048 18,078 37,038 15, ,592 ug ,128 3,485 58,627 1,907 26,313 11,038 64, ,773 1,823 17,294 22,703 10, ,146 Sep ,833 8,480 92, ,272 20,719 94,972 90,176 3,623 27,360 45,019 20, ,719 Oct ,164 11, ,649 3,000 35,187 45, , ,899 6,662 77,767 91,619 40,489 1,295,368 Nov ,804 17, ,703 9,407 43,501 67, , ,222 20, , ,233 63,890 2,238,245 Dec ,616 31, ,855 14,595 65, , , ,407 33, , , ,670 3,459,186 Jan ,429 56, ,693 14,926 72, , , ,221 27, , , ,769 3,938,775 Feb ,479 52, ,942 12,312 74,487 98, , ,216 26, , , ,941 3,622,346 Mar ,363 47, ,739 9,809 64,534 77, , ,840 21, , , ,946 2,918,998 Total 4,118, ,172 3,811,505 73, , ,639 2,970,086 5,536, ,336 1,207,623 1,723, ,135 21,851,782

80 S T T E O F M I C H I G N BEFORE THE MICHIGN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of ) MICHIGN GS UTILITIES CORPORTION ) for authority to implement a gas cost recovery ) Case No. U plan and factors for the 12-month period ) from pril 2019 through March 2020, ) and for related approvals. ) DIRECT TESTIMONY ND EXHIBITS OF KEVIN R. KUSE ON BEHLF OF MICHIGN GS UTILITIES CORPORTION December 28, 2018

81 Q Q Q PRT I QULIFICTIONS OF KEVIN R. KUSE PLESE STTE YOUR NME, BUSINESS DDRESS, ND POSITION. My name is Kevin R. Kuse. My business address is 700 North dams Street, P.O. Box 19001, Green Bay, WI I am employed by WEC Business Services, LLC ( WBS ), a wholly owned subsidiary of WEC Energy Group, Inc. ( WEC ), as a Gas Commodity Contract dministrator. FOR WHOM RE YOU PROVIDING TESTIMONY? I am providing testimony on behalf of Michigan Gas Utilities Corporation ( MGUC ). PLESE DESCRIBE BRIEFLY YOUR EDUCTIONL, PROFESSIONL, ND UTILITY BCKGROUND. I hold a Bachelor of rts degree in Economics and a Master of Science degree in dministrative Science, from the University of Wisconsin Green Bay. In September 1999, I was hired by Wisconsin Public Service Corporation, now a wholly-owned subsidiary of WEC as a Customer Research nalyst in the Market 19 Research Department. From September 1999 to July 2007, I developed customer insights by gathering and interpreting data from primary survey research and secondary data sources. During that period, I also performed two short-term assignments as the Leader of the Market Research department. In July of 2007, I was hired as a Senior Load Forecaster in the Sales and Revenue Forecasting Department. s a Senior Load Forecaster, I have carried out duties including various aspects of the development of the short-term and long-term 2

82 Q electric and gas forecasts for WEC regulated utility subsidiaries, including MGUC. In February 2016, I became a Gas Commodity Contract dministrator in the Gas Supply Department. s a Gas Commodity Contract dministrator, I have carried out duties in the development and execution of commodity contract procurement strategies to meet peak, swing and annual requirements. HVE YOU PREVIOUSLY TESTIFIED BEFORE NY REGULTORY GENCY? Yes, I have. I testified before the Michigan Public Service Commission ( Commission or MPSC ) in Case Nos. U on behalf of Upper Peninsula Power Company and U-17940, U-18154, and U on behalf of MGUC. I have also testified before the Illinois Commerce Commission in Docket Nos / (cons.), and Docket Nos / (cons.), which were Peoples Gas and North Shore Gas 2012 and 2013 test year general rate cases. I also provided written testimony to the Public Service Commission of Wisconsin in Docket No UR-123, which was Wisconsin Public Service Corporation s 2015 test year rate case. 17 3

83 Q Q PRT II DIRECT TESTIMONY OF KEVIN R. KUSE WHT IS THE PURPOSE OF YOUR DIRECT TESTIMONY IN THIS PROCEEDING? The purpose of my direct testimony in this proceeding is to present and support MGUC s Gas Cost Recovery ( GCR ) Plan for the 12-month period ending March 31, Specifically, I will present and support MGUC s Design Peak Day analysis for the GCR period. PLESE IDENTIFY THE EXHIBIT YOU RE SPONSORING IN THIS PROCEEDING. I am sponsoring the following exhibit: 13 Exhibit Contents Q -11 (KRK-1) Design Peak Day nalysis DESIGN PEK DY NLYSIS WHT IS MGUC S PLNNED COMBINED GCR ND GS CUSTOMER CHOICE ( GCC ) DESIGN PEK DY REQUIREMENT? s shown on page 1 of Exhibit -11, (KRK-1), the MGUC Design Peak Day GCR/GCC customer requirements is estimated to be 214,906 Mcf. This represents a decrease of 4,993 Mcf (-2.27%) from the 219,899 Mcf presented in Case No. U for the GCR period. MGUC provides a combined GCR/GCC Design Peak Day estimate for two reasons: (i) Many GCC customers have the ability to switch back to GCR service 4

84 Q within the GCR period, and may do so depending on changing market conditions that are outside of MGUC s control, and (ii) MGUC remains the Supplier of Last Resort for all GCC customers and, as such, must retain the capability to serve them, especially under Design Peak Day weather conditions. WHT RE MGUC S PLN DESIGN WETHER CRITERI FOR ITS GCR/GCC CUSTOMERS? Consistent with MGUC s two most recent GCR plans, MGUC s Design Peak Day design weather criteria consists of a Seventy-five Corrected Degree Day Deficiency (labeled as CDDD65, as the pivot point for determining heating degree days is set at 65 degrees Fahrenheit) following a day with a Sixty-eight Corrected Degree Day Deficiency Q Q HOW DID MGUC DETERMINE ITS DESIGN PEK DY REQUIREMENTS? MGUC determined its Design Peak Day requirements by performing regressions of daily GCR/GCC load with total CDDD65 information using the most recent three years of daily data from the winter months of December through February (December 2015 through February 2018) for all days with 24-hour average temperatures of 32 degrees Fahrenheit or colder. The resulting Design Peak Day estimates were risk adjusted to provide a 97.5% confidence that actual loads experienced under Design Peak Day weather conditions would not exceed the estimate. The GCR/GCC regression results provided the 214,906 Mcf Design Peak Day estimate for the winter at a 97.5% confidence level. PLESE EXPLIN THE HISTORICL WETHER NLYSIS THT MGUC PERFORMED. 5

85 Q The historical weather analysis is shown on Exhibit -11 (KRK-1), page 4. MGUC analyzed 47 years of historic weather information to determine the number and percentage of occurrences at various levels of CDDD65 actually experienced. Historical weather information was gathered from and averaged over four weather stations (Benton Harbor, Coldwater, Grand Haven, and Monroe). This weather information was adjusted for the effects of wind and sun to calculate a CDDD65. The CDDD formula is provided on page 5 of Exhibit -11 (KRK-1) for CDDD65. The CDDD65 variable, which is equivalent to the traditional CDDD, uses degree days based on 65 degrees Fahrenheit. How was weather information used in the Design Peak Day analysis? MGUC developed averages of weather information from five weather stations (Benton Harbor, Coldwater, Grand Rapids, Monroe, and Muskegon) for each gas day (i.e. 24-hour period from 10 am to 10 am) since January 1, MGUC uses this five weather station configuration for Design Peak Day planning and short-term (daily for six to eight days) load forecasting because it provides a better fit with daily loads. The weather data vendor provided consistent hourly weather data for each of the five stations beginning with January 1, MGUC used this hourly weather data to re-compute the daily system CDDD65 beginning with January 1, The CDDD65 information was sorted in descending order (page 4 of Exhibit -11 (KRK-1)), and the number and probability of at least one occurrence during the winter for each CDDD65 level was calculated. In 47 years of weather history, Seventy-five CDDD65 or colder has occurred seven times in six different winters. 6

86 This represents a 6-in-47 or about a 13% chance that any given winter will have at least one occurrence. So, based on the available 47 years of weather history, the Seventy-five CDDD65 or colder design weather event is expected to occur about once every eight (47 divided by 6) winters. Q WHT INDEPENDENT VRIBLES DID MGUC USE IN THE DESIGN PEK DY NLYSIS? Q MGUC used the following independent variables: 1. CDDD65 for current day 2. CDDD65 previous day 3. December binary variable 4. February binary variable 5. Friday binary variable 6. Saturday binary variable 7. Sunday binary variable 8. n utoregressive variable These variables have been used by MGUC in previous GCR plan cases 1. The utoregressive variable was included in this and prior forecasts to enhance the forecast by accounting for any autocorrelation in the time series data. WHT PORTION OF THE TOTL SENDOUT (THROUGHPUT) GENERTED BY THE DESIGN PEK DY NLYSIS IS TTRIBUTBLE TO GCR/GCC CUSTOMERS? 1 Last year, November through March total normalized sales were used for each winter to lessen potential negative impacts of accounting or meter reading corrections in any one month. The primary intent of these variables was to measure year-over-year changes in demand that are not explained by other variables. The variables were excluded because they are not significant in many specifications, especially for firm load analysis. 7

87 Q Separate Throughput, End User Transport, and GCR/GCC Design Peak Day regressions were performed for each of three MGUC regions. These regions include the Western Region (Muskegon, Grand Rapids and Benton Harbor), the Coldwater Region, and the Monroe Region. The GCR/GCC customers point estimate (50% confidence) load of 206,476 McF is taken directly from the GCR/GCC regression with no risk adjustment. The corresponding total Throughput Design Peak Day volume is 265,163 Mcf. Therefore, the portion of total sendout attributable to the combined GCR/GCC customers at a 50% confidence level is 77.9% (206,476 / 265,163). The GCR/GCC customers Design Peak Day load with a 97.5% confidence level is 214,906 Mcf, including a risk adjustment. The corresponding total Throughput Design Peak Day requirement is 275,715 Mcf. The portion of total sendout attributable to the combined GCR/GCC customers at a 97.5% confidence level is 77.9% (214,906 / 275,715). Summaries of the results of the GCR/GCC, End User Transport, and Throughput regressions are provided on pages 6 through 8 of Exhibit -11 (KRK-1). HOW DOES MGUC DETERMINE THE PROTECTION LEVEL IT SHOULD PROVIDE ITS GCR/GCC CUSTOMERS ON DESIGN PEK DY? Local Distribution Companies ( LDC ) in the United States use a variety of methods to determine their Design Peak Day weather conditions. Some base their Design Peak Day analysis on the coldest temperature that has ever been experienced by the LDC. Others use a temperature that is expected to occur at least once every 5 or 10 years, and still others use a temperature expected to 8

88 Q occur at least once every 20 or 30 years. Each method will result in different costs for the LDC s customers, which must be balanced against the risk of inadequate supply during extreme cold weather conditions (or the costs of procuring supply on the open market under such conditions). In MPSC Case No. U-12617, MGUC s predecessor agreed that a level of Seventy-Five CDDD65 would be used. The Seventy-Five CDDD65 level was recently reaffirmed in Case No. U as being appropriate for the total MGUC system. Consistent with the process used in Case Nos. U-15700, U-16145, U , U-16920, U-17130, U-17331, U-17690, U-17940, U-18154, and U the Seventy-Five CDDD65 will be used again for along with a volume risk adjustment to provide a 97.5% confidence level that actual load experienced under Design Day conditions will not exceed the estimate. The Design Peak Day process also uses the prior day design criteria of Sixty-eight CDDD65 that was approved in Case No. U DOES THIS CONCLUDE YOUR DIRECT TESTIMONY? Yes, it does. 9

89 MICHIGN PUBLIC SERVICE COMMISSION Case No. U MICHIGN GS UTILITIES CORPORTION Exhibit -11 (KRK-1) Design Peak Day nalysis Page 1 of 8 Witness: Kevin R. Kuse DEPRTMENTL CORRESPONDENCE Subject MGUC Design Peak Day Requirements Date December 12, 2018 To Russel Laursen From Kevin Kuse Copy To Shelly Chandler Jill Delarwelle Brian Marozas Dave Tyler Kristie Wiegand Sue nn Zellner Summary The Michigan Gas Utilities Corporation ( MGUC ) Design Peak Day GCR/GCC customer requirements estimate is 214,906 Mcf. This represents a decrease of 4,993 Mcf (-2.27%) from the 219,899 Mcf presented in Case No. U The associated Design Peak Day Total Throughput requirements are 275,715 Mcf. This represents an increase of 2,066 Mcf (0.76%) from the 273,649 Mcf presented in Case No. U These requirements were developed based on the following risk-based preferences of MGUC management: 1. The Design Peak Day weather criteria is a 75 Corrected Degree Day Deficiency (labeled as CDDD65 because the pivot point for determining heating degree days is set at 65 degrees Fahrenheit). Based on a study completed in Case No. U using 47 years of weather history, 75 CDDD65 or colder has occurred seven times in six different winters. This represents a 6-in-47 or about a 13% chance that any given winter will have at least one occurrence. 2. The prior day Design Peak Day weather criteria is 68 CDDD The Design Peak Day occurs on a weekday in January 2020.