Founded in 1852 by Sidney Davy Miller PUL MICHEL COLLINS TEL (517) 483-4908 FX (517) 374-6304 E-MIL collinsp@millercanfield.com Miller, Canfield, Paddock and Stone, P.L.C. One Michigan venue, Suite 900 Lansing, Michigan 48933 TEL (517) 487-2070 FX (517) 374-6304 www.millercanfield.com 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 48917 Re: Michigan Gas Utilities Corporation 2019-2020 GCR Plan and Factors MPSC Case No. U-20239 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
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-20239 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 2020. 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.
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 $3.4859 per thousand cubic feet ( Mcf ) for the billing months of pril 2019 through March 2020 6. The GCR factor of $3.4859 per Mcf is comprised of a commodity charge of $2.8840 per Mcf and a Reservation Charge of $0.6019 per Mcf. 7. Consistent with the authority granted in Case Nos. U-16481 et al., MGUC will assess a Reservation Charge of $0.6019 per Mcf to both GCR and Gas Customer Choice ( GCC ) customers for the billing months of pril 2019 through March 2020. 8. 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 2019-2020 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
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 $3.4859 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 $0.6019 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
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 48933 (517) 487-2070 ttorneys for Michigan Gas Utilities Corporation 4
MICHIGN GS UTILITIES CORPORTION Case No. U-20239 2019/2020 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 2 2019-2020 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
MICHIGN GS UTILITIES CORPORTION Case No. U-20239 2019/2020 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 2023/2024 7 thru 8 2019/2020 Transportation Volume Forecast and Transportation Service Contracts 1 Calculation of the GCR Over/(Under)-Recovery Projected Balance for 2018/2019 2 Calculation of the Reservation Charge Over/(Under)-Recovery Projected Balance for 2018/2019 1 Billed Volumes in MMcf @ 14.65 psia dry for the GCR Plan Period Ending March 31, 2020 2 Derivation of the Base GCR Factor and Reservation Charger for the GCR Plan Period Ending March 31, 2020 3 Computation of Revenue Collected through application of the Base GCR Factor and Reservation Charge for the Plan Period Ending March 31, 2020 4 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 -15-1 D. Tyler None D. Tyler None D. Tyler None D. Tyler WP -17-1 D. Tyler None D. Tyler None D. Tyler None D. Tyler None D. Tyler None 1 thru 5 Contingency Matrix D. Tyler None
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-20239 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 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 54307-9001. 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. 24 25 Q PLESE SUMMRIZE YOUR EDUCTION, EMPLOYMENT ND 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 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 2008. I have been employed by WEC or its predecessors since 2006. In addition to my current role, I have held positions as a Gas Trader (2006-2011), Manager of Upper Peninsula Power Company ( UPPCO ) Power Supply (2011-2012), Manager of Retail Electric Rates (2012-2014), and Manager of Resource Planning and Policy (2014-2015). In my role from 2006-2011, 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. 16 17 18 Q HVE YOU PREVIOUSLY TESTIFIED IN NY REGULTORY PROCEEDINGS? 19 20 21 22 23 24 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 2018-2019 GCR Plan; 3
1 2 3 4 5 6 7 MPSC Case No. U-18154; MGU s 2017-2018 GCR Plan; MPSC Case No. U-17091: UPPCO s 2013 PSCR Plan; MPSC Case No. U-16881-R: UPPCO s 2012 PSCR Plan Reconciliation; MPSC Case No. U-16881: UPPCO s 2012 PSCR Plan; MPSC Case No. U-16421-R: UPPCO s 2011 PSCR Plan Reconciliation; PSCW Docket No. 6690-UR-123: WPS Corp s 2015 test year rate case; and PSCW Docket No. 6690-UR-122: WPS Corp s 2014 test year rate case. 8 4
1 2 3 4 5 6 Q PRT II DIRECT TESTIMONY OF RUSSELL T. LURSEN WHT IS THE PURPOSE OF YOUR DIRECT TESTIMONY ND EXHIBITS? 7 8 9 10 11 12 13 14 15 The purpose of my Direct Testimony and Exhibits is to present MGUC s 2019-2020 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, 2019-2024. 16 17 18 19 20 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 22 23 24 25 26 27 28 29 30-1 (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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 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 (2019-2020 through 2023-2024) -7 (RTL-7) Pages 1 through 22: GCR Supply llocation (2019-2020 through 2023-2024) 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 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 ). 26 27 NR NNS Firm balancing agreement on NR Pipeline with daily 8
1 2 3 4 5 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. 6 7 8 9 10 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. 11 12 dditional details and information, as well as information concerning other available services, is included in Mr. Tyler s Exhibit -18 (DJT-5). 13 14 15 16 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? 17 18 Yes. The projects identified in Case No. U-18414 continue to progress and will allow MGUC to utilize lower cost pipelines in the Coldwater and Monroe areas. 19 20 21 Q PLESE DISCUSS THE PROGRESS ON THE VECTOR PROJECT IN THE COLDWTER RE. 22 23 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
1 2 3 4 5 6 7 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. 8 9 10 Q PLESE DESCRIBE THE PROGRESS ON THE NR PROJECT IN THE MONROE RE. 11 12 13 14 15 16 17 18 19 20 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, 2019. Pre-work preparation has begun and construction will occur in the summer of 2019. 21 22 23 Q WHT BENEFITS WILL GCR CUSTOMERS DERIVE FROM THE INFRSTRUCTURE PROJECTS IN COLDWTER ND MONROE? 10
1 2 3 4 5 6 7 8 9 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 2019-2020 of $14.8M in case U-18414. 10 11 12 Q WILL THESE PROJECTS IMPROVE MGUC CCESS TO MRCELLUS/UTIC SHLE GS? 13 14 15 16 17 18 19 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. 20 21 Q HS THE PEPL CONTRCT BEEN RENEWED T LOWER VOLUMES? 22 23 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
1 2 3 4 5 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 2018-2019 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? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 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
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? 6 7 8 9 10 11 Yes. The transportation agreement with DTE Energy for 5,000 dth/day at North Grand Haven was renewed in the spring of 2018. 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. 12 13 14 Q DOES MGUC CONTINUE TO LOOK T LTERNTIVES FOR PIPELINE TRNSPORTTION ND STORGE? 15 16 17 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
1 2 3 4 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. 7 8 9 Q PLESE EXPLIN WHY THE COMPNY CONTRCTS FOR FIRM TRNSPORT FROM PIPELINES. 10 11 12 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
1 requirement. 2 3 4 Q PLESE DESCRIBE THE COMPNY-OWNED UNDERGROUND STORGE FCILITIES. 5 6 7 8 9 10 11 12 13 14 15 16 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. 17 18 19 20 21 22 23 24 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Q In the 2019-2020 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
1 2 3 4 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 6 7 8 9 10 11 12 13 14 15 16 17 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. 110023 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. 126354 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 2019-2020 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Q Q Q SUPPLY PLN: STORGE MNGEMENT, DESIGN PEK DY ND SUPPLY PURCHSE STRTEGY FOR THE 2019-2020 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 2019-2020 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 2019-2020 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Q Q Q Q Jan. 31 1,779,021 Mcf 1,086,988 Mcf Feb. 28 1,009,021 Mcf 551,988 Mcf Mar. 31 259,021 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 2019-2020 DESIGN PEK DY LOD 20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Q Q Q REQUIREMENT? s shown in Exhibit -11 (KRK-1) the 2019-2020 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 2019-2020 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? 22 23 24 25 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 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, 2016. (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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 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 2019-2020 GCR PERIOD. During 2019-2020 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 2019-2020 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 2019-2020 GCR Period. 18 19 20 Q DESCRIBE NY SSET MNGEMENT GREEMENTS MGUC IS CONSIDERING ENTERING INTO FOR THE 2019-2020 GCR PERIOD? 21 22 23 24 25 Q The winter PEPL M and the summer and winter NR SW M will be considered. TOTL COST OF GS PLESE DESCRIBE EXHIBIT -6. 23
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Q Q Exhibit -6 (RTL-6), summarizes the sources of supply for each GCR period from 2019-2020 through 2023-2024, 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 2019-2020 GCR supply by source. Page 4 shows commodity and transportation charges for the 2019-2020 GCR period. Page 5 details city gate gas costs and reservation costs for the 2019-2020 GCR period. Page 6 summarizes storage activity for the 2019-2020 GCR period. Pages 7 through 10 detail the 2020-2021 GCR Period. Pages 11 through 14 detail the 2021-2022 GCR Period. Pages 15 through 18 detail the 2022-2023 GCR Period. Pages 19 through 22 detail the 2023-2024 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 2019-2020 GCR PERIOD? 24
1 2 3 4 5 6 7 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 2019-2020 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 2019-2020 GCR PLN? 10 11 MGUC used the following process to derive the price forecast in Exhibit -5 (RTL-5). 12 13 14 15 16 17 18 19 20 (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 21 22 23 24 Q IS THE MGUC PLN FOR SUPPLYING GS DURING THE 2019-2020 GCR PERIOD RESONBLE ND PRUDENT COMPRED TO LTERNTIVE SUPPLY OPTIONS VILBLE TO CUSTOMERS? Yes it is. The following table summarizes alternative heating fuels: 25
1 2 3 4 5 6 7 8 9 10 11 Fuel Type Cost/Unit Conversion Factor Cost/Therm Heating Oil $3.17/gallon 1.389 $2.282 Propane $2.05/gallon 0.912 $2.248 Electricity $0.10599/kWh 0.03413 $3.105 Natural Gas $3.4859/Mcf 10.2 $0.342 The heating oil and the propane prices are from the 2018-2019 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. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 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: 2019-2020 Page 3 2020-2021 Page 7 2021-2022 Page 11 2022-2023 Page 15 2023-2024 Page 19 WHT PRICING IS USED FOR THE OUT YERS IN THE FIVE-YER FORECST? 26
1 2 3 4 5 6 Q Pricing in the four out years includes a 3% annual escalation applied to the NYMEX prices for the twelve months beginning pril 2020. The basis differentials are assumed to remain similar. DOES THIS COMPLETE YOUR DIRECT TESTIMONY? Yes it does. 27
Case No. U-20239 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
Case No: U-20239 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
MICHIGN PUBLIC SERVICE CORPORTION MICHIGN GS UTILITIES CORPORTION Summary of Gas Supply, Transportation and Storage Contracts U-20239 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 #109422 (Winter) 7,000 1,057,000 3/20 $10.0000 x MDQ $0.0216 2 NR ETS - SOUTHWEST #109422 (Summer) 4,000 856,000 3/20 $10.0000 x MDQ $0.0216 3 NR ETS - SOUTHEST #110024 (nnual) 15,000 5,475,000 3/20 $9.6500 x MDQ $0.0189 TRNSPORTTION 4 NR ETS - STORGE#110019 (Winter) 53,805 8,124,555 3/20 $6.5486 x MDQ $0.0101 5 NR ETS - STORGE#110020,110022 (Winter) 8,680 1,310,680 3/20 $6.5486 x MDQ $0.0101 6 NR ETS - STORGE#110019 (pril) 33,000 990,000 3/20 $6.5486 x MDQ $0.0101 7 NR ETS - STORGE#126355 (Winter) 15,000 2,265,000 3/23 $6.5486 x MDQ $0.0101 8 PNHNDLE - EFT (Winter) #17000 33,000 4,983,000 3/24 $13.41 x MDQ $0.0426 9 NR FTS - CHICGO #126356 (nnual) 5,000 1,825,000 3/23 $5.7290 x MDQ $0.0101 10 DTE - #4078-03 (Winter) 5,000 755,000 3/21 $3.0266 X MDQ $0.0000 11 VECTOR - CHICGO (Summer) 14,000 2,996,000 10/28 $2.1292 X MDQ $0.0000 12 NR FSS - #110023 63,199w/18,057i 3,150,700 3/20 $2.1315 x CQ capacity only $0.3480 STORGE 13 NR NNS - #110025 15,000w/10,000s 3/20 $6.8750 x MDQ $0.0165 14 NR FSS - #126354 15,171w/4,335i 756,350 3/23 $2.0000 x CQ capacity only $0.3000 15 MGU STORGE 30,000 2,900,000 16 Consumers (Cancelled)
MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION MGUC sset Summary MGU sset Summary PipeLine Contracts U-20239 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 #109422 ETS 3/31/2020 SW Headstation Group 1 MGU 7,000 winter $ 10.000 $ 0.0216 2 NR #109422 ETS 3/31/2020 SW Headstation Group 1 MGU 4,000 summer $ 10.000 $ 0.0216 3 4 NR #110024 ETS 3/31/2020 SE Headstation Group 1 MGU 15,000 annual $ 9.6500 $ 0.0189 5 6 NR #110019 ETS 3/31/2020 Storage Group 1 MGU 53,805 winter $ 6.5486 $ 0.0101 7 NR #110019 ETS 3/31/2020 Storage Group 1 MGU 33,000 pril Only $ 6.5486 $ 0.0101 8 9 NR #110020 ETS 3/31/2020 Storage Group 2 MGU 800 winter $ 6.5486 $ 0.0101 10 11 NR #110022 ETS 3/31/2020 Storage Group 3 MGU 7,880 winter $ 6.5486 $ 0.0101 12 13 NR #110025 NNS 3/31/2020 Storage Group 1 MGU 9,167 summer $ 6.8750 $ 0.0165 14 NR #110025 NNS 3/31/2020 Storage Group 1 MGU 14,167 winter $ 6.8750 $ 0.0165 15 NR #110025 NNS 3/31/2020 Storage Group 2 MGU 357 annual $ 6.8750 $ 0.0165 16 NR #110025 NNS 3/31/2020 Storage Group 3 MGU 476 annual $ 6.8750 $ 0.0165 Transportation 17 18 NR #126355 ETS 3/31/2023 Storage Group 1 MGU 15,000 winter $ 6.5486 $ 0.0101 19 20 NR #126356 FTS 3/31/2023 Chicago Group 1 MGU 5,000 annual $ 5.7290 $ 0.0101 21 22 DTE #4078-03 Firm 3/31/2021 North Grand Haven MGU 5,000 winter $ 3.0266 $ - 23 24 PEPL #17000 EFTS 3/31/2024 KN Grant #1 MGU 8,250 winter $ 13.4100 $ 0.0426 25 PEPL #17000 EFTS 3/31/2024 Crescendo MGU 9,750 winter $ 13.4100 $ 0.0426 26 PEPL #17000 EFTS 3/31/2024 South Rattlesnake MGU 15,000 winter $ 13.4100 $ 0.0426 27 28 Vector TBD FT-1 10/31/2028 lliance/nbpl/guardian MGU 14,000 summer $ 2.1292 $ - 29 30 Daily Withdrawal Daily Injection 31 NR #110023 FSS 3/31/2020 63,199 18,057 Storage Res $2.1315 / $0.3480 32 Storage 33 NR #126354 FSS 3/31/2023 15,171 4,335 Storage Res $2.0000 / $0.3000 34 35 Consumers (Cancelled) 36 37 MGU Storage 30,000 20,000 38 39 40 Otsego North 5 41 42 43 Production
MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION Peak Day Requirement nalysis Case No. U-20239 Exhibit -4 (RTL-4) Witness: Russell T. Laursen Page 1 of 1 2019-20 Western Coldwater Monroe Peak Day (Mcf) 214,906 113,282 38,538 63,087 Btu factor 1.0559 Peak Day (Dth) 226,921 119,615 40,692 66,613 LINE Pipe Transport MDQ 1 NR SW 109422 7,000 7,000 2 NR Sto 110019 38,805 38,805 3 110020 800 800 4 110022 7,880 7,880 5 126355 15,000 15,000 6 NR SE 110024 15,000 15,000 7 NR CHICGO 126356, TBD 25,000 5,000 20,000 8 DTE 4078-03 5,000 5,000 10 MGUC Storage 30,000 30,000 11 Producers 165 165 12 PEPL 17000 33,000 3,517 29,483 13 Sub Total 177,650 85,970 34,317 57,363 14 NR NNS (110025) 15,000 14,167 357 476 15 Total 192,650 100,137 34,674 57,839 16 Call and or Swing Supply (City-gate) 34,271 19,478 6,018 8,774 17 Grand Total 226,921 119,615 40,692 66,613
MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION REGIONL NTURL GS FORECST Case No. U-20239 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 $2.9060 $2.7940 $2.8100 $2.8350 $2.8340 $2.8120 $2.8340 $2.8730 $3.0320 $3.1540 $3.0870 $2.8620 12/4/2018 $2.9570 $2.8390 $2.8530 $2.8760 $2.8710 $2.8450 $2.8660 $2.9030 $3.0590 $3.1770 $3.1140 $2.8790 12/5/2018 $2.9810 $2.8510 $2.8660 $2.8880 $2.8820 $2.8560 $2.8760 $2.9140 $3.0660 $3.1820 $3.1220 $2.9000 12/6/2018 $2.9600 $2.8440 $2.8590 $2.8820 $2.8780 $2.8530 $2.8740 $2.9130 $3.0650 $3.1830 $3.1230 $2.9030 12/7/2018 $2.9910 $2.8770 $2.8920 $2.9160 $2.9110 $2.8850 $2.9070 $2.9490 $3.0990 $3.2130 $3.1540 $2.9380 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 2019-20 $2.959 $2.841 $2.856 $2.879 $2.875 $2.850 $2.871 $2.910 $3.064 $3.182 $3.120 $2.896 2020-21 $3.048 $2.926 $2.942 $2.966 $2.961 $2.936 $2.958 $2.998 $3.156 $3.277 $3.214 $2.983 2021-22 $3.139 $3.014 $3.030 $3.055 $3.050 $3.024 $3.046 $3.088 $3.251 $3.376 $3.310 $3.073 2022-23 $3.233 $3.104 $3.121 $3.146 $3.142 $3.114 $3.138 $3.180 $3.348 $3.477 $3.409 $3.165 2023-24 $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: $ 0.0210 Fuel: 1.51% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR 2019-20 $2.802 $2.684 $2.699 $2.723 $2.718 $2.693 $2.715 $2.754 $2.907 $3.025 $2.963 $2.740 2020-21 $2.891 $2.769 $2.785 $2.809 $2.805 $2.779 $2.801 $2.841 $2.999 $3.120 $3.057 $2.826 2021-22 $2.982 $2.857 $2.873 $2.898 $2.893 $2.867 $2.889 $2.931 $3.094 $3.219 $3.153 $2.916 2022-23 $3.077 $2.948 $2.964 $2.990 $2.985 $2.958 $2.981 $3.023 $3.191 $3.320 $3.252 $3.008 2023-24 $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: $ 0.0237 Fuel: 2.56% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR 2019-20 $2.383 $2.265 $2.280 $2.303 $2.299 $2.274 $2.295 $2.334 $2.488 $2.606 $2.544 $2.320 2020-21 $2.472 $2.350 $2.365 $2.390 $2.385 $2.359 $2.381 $2.421 $2.580 $2.701 $2.637 $2.407 2021-22 $2.563 $2.438 $2.454 $2.479 $2.474 $2.448 $2.470 $2.511 $2.675 $2.799 $2.734 $2.497 2022-23 $2.657 $2.528 $2.545 $2.570 $2.566 $2.538 $2.561 $2.604 $2.772 $2.901 $2.833 $2.589 2023-24 $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: $ 0.0122 Fuel: 0.42% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR 2019-20 $2.828 $2.710 $2.725 $2.748 $2.744 $2.719 $2.740 $2.779 $2.933 $3.051 $2.989 $2.765 2020-21 $2.917 $2.795 $2.811 $2.835 $2.830 $2.805 $2.827 $2.867 $3.025 $3.146 $3.083 $2.852 2021-22 $3.008 $2.883 $2.899 $2.924 $2.919 $2.893 $2.915 $2.957 $3.120 $3.245 $3.179 $2.942 2022-23 $3.102 $2.973 $2.990 $3.015 $3.011 $2.983 $3.007 $3.049 $3.217 $3.346 $3.278 $3.034 2023-24 $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: $ 0.0439 Fuel: 4.42% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR 2019-20 $2.322 $2.204 $2.219 $2.243 $2.239 $2.214 $2.235 $2.274 $2.428 $2.545 $2.483 $2.260 2020-21 $2.411 $2.290 $2.305 $2.329 $2.325 $2.299 $2.321 $2.361 $2.519 $2.641 $2.577 $2.347 2021-22 $2.503 $2.377 $2.393 $2.418 $2.414 $2.387 $2.410 $2.451 $2.614 $2.739 $2.673 $2.436 2022-23 $2.597 $2.468 $2.484 $2.510 $2.505 $2.478 $2.501 $2.544 $2.712 $2.840 $2.773 $2.528 2023-24 $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 2019-20 $2.774 $2.656 $2.671 $2.694 $2.690 $2.665 $2.686 $2.725 $2.879 $2.996 $2.935 $2.711 2020-21 $2.862 $2.741 $2.756 $2.780 $2.776 $2.750 $2.772 $2.812 $2.971 $3.092 $3.028 $2.798 2021-22 $2.954 $2.829 $2.845 $2.869 $2.865 $2.838 $2.861 $2.902 $3.065 $3.190 $3.125 $2.887 2022-23 $3.048 $2.919 $2.935 $2.961 $2.956 $2.929 $2.952 $2.995 $3.163 $3.291 $3.224 $2.980 2023-24 $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: $ 0.2440 Fuel: 1.83% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR 2019-20 $2.804 $2.686 $2.701 $2.724 $2.720 $2.695 $2.716 $2.755 $2.909 $3.026 $2.965 $2.741 2020-21 $2.892 $2.771 $2.786 $2.810 $2.806 $2.780 $2.802 $2.842 $3.001 $3.122 $3.058 $2.828 2021-22 $2.984 $2.859 $2.875 $2.899 $2.895 $2.868 $2.891 $2.932 $3.095 $3.220 $3.155 $2.917 2022-23 $3.078 $2.949 $2.965 $2.991 $2.986 $2.959 $2.982 $3.025 $3.193 $3.321 $3.254 $3.010 2023-24 $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: $ 0.0114 Fuel: 0.42% PR MY JUN JUL UG SEP OCT NOV DEC JN FEB MR 2019-20 $2.952 $2.834 $2.849 $2.872 $2.868 $2.843 $2.864 $2.903 $3.057 $3.175 $3.113 $2.889 2020-21 $3.041 $2.919 $2.935 $2.959 $2.954 $2.929 $2.951 $2.991 $3.149 $3.270 $3.207 $2.976 2021-22 $3.132 $3.007 $3.023 $3.048 $3.043 $3.017 $3.039 $3.081 $3.244 $3.369 $3.303 $3.066 2022-23 $3.226 $3.097 $3.114 $3.139 $3.135 $3.108 $3.131 $3.173 $3.341 $3.470 $3.402 $3.158 2023-24 $3.323 $3.191 $3.207 $3.234 $3.229 $3.201 $3.225 $3.269 $3.442 $3.574 $3.505 $3.253
MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION CLCULTION OF BSIS DIFFERENTIL Case No. U-20239 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 $3.4960 $3.4200 $3.4600 $3.7500 $3.3900 $3.7100 $3.6600 $3.6800 2 Dec-13 $3.8180 $3.7300 $3.5500 $3.9000 $3.4800 $3.9300 $3.8900 $3.9400 3 Jan-14 $4.4070 $4.3200 $4.3300 $4.8300 $4.2700 $4.7600 $4.6800 $4.7300 4 Feb-14 $5.5570 $5.4800 $5.1500 $8.1200 $5.2900 $8.1300 $6.9200 $8.2000 5 Mar-14 $4.8550 $4.7600 $5.2500 $10.9400 $5.1700 $10.1000 $11.3600 $11.6300 6 pr-14 $4.5840 $4.5300 $4.3700 $4.9800 $4.3000 $5.3300 $5.2000 $5.2800 7 May-14 $4.7950 $4.7200 $4.4500 $4.8500 $4.3100 $4.8300 $4.9400 $4.9600 8 Jun-14 $4.6190 $4.5400 $4.2100 $4.6500 $4.1600 $4.7000 $4.8400 $4.8300 9 Jul-14 $4.4000 $4.5400 $4.2100 $4.6500 $4.1600 $4.7000 $4.8400 $4.8300 10 ug-14 $3.8080 $3.7400 $3.6200 $3.8700 $3.5700 $3.9700 $3.9400 $3.9600 11 Sep-14 $3.9570 $3.9100 $3.7900 $4.0100 $3.7400 $4.0500 $4.0500 $4.0600 12 Oct-14 $3.9840 $3.9300 $3.7500 $4.0700 $3.7400 $4.0900 $4.0400 $4.0800 13 Nov-14 $3.7280 $3.6500 $3.4400 $3.7500 $3.4400 $3.8800 $3.8600 $3.8600 14 Dec-14 $4.2820 $4.1900 $4.3500 $5.1700 $4.2200 $5.1800 $4.8700 $4.9400 15 Jan-15 $3.1890 $3.1100 $3.1700 $3.6100 $3.0700 $3.5700 $3.4300 $3.5500 16 Feb-15 $2.8660 $2.8100 $2.7500 $3.0200 $2.6200 $3.0600 $2.9600 $3.0400 17 Mar-15 $2.8940 $2.8600 $2.6800 $3.6700 $2.6200 $3.8200 $3.4700 $3.6500 18 pr-15 $2.5900 $2.5200 $2.3500 $2.6500 $2.2500 $2.7800 $2.7100 $2.7600 19 May-15 $2.5170 $2.4500 $2.2700 $2.5200 $2.1900 $2.7100 $2.7300 $2.7400 20 Jun-15 $2.8150 $2.7700 $2.5700 $2.8600 $2.5500 $2.8800 $2.9100 $2.9500 21 Jul-15 $2.7730 $2.7200 $2.5300 $2.8200 $2.5500 $2.8500 $2.8500 $2.8500 22 ug-15 $2.8860 $2.8400 $2.6400 $2.8900 $2.6500 $2.9300 $2.9600 $3.0000 23 Sep-15 $2.6380 $2.5900 $2.4200 $2.7800 $2.3700 $2.8500 $2.8600 $2.9000 24 Oct-15 $2.5630 $2.4900 $2.3600 $2.7000 $2.3800 $2.7900 $2.8600 $2.8900 25 Nov-15 $2.0330 $1.9600 $1.9000 $2.3400 $1.8700 $2.3200 $2.3500 $2.3400 26 Dec-15 $2.2060 $2.1500 $2.1100 $2.3900 $2.0800 $2.4300 $2.4000 $2.4200 27 Jan-16 $2.3720 $2.3300 $2.0600 $2.5700 $2.1000 $2.6400 $2.5000 $2.5500 28 Feb-16 $2.1890 $2.1700 $2.0500 $2.3200 $2.0400 $2.2900 $2.2800 $2.2800 29 Mar-16 $1.7110 $1.6400 $1.5300 $1.8500 $1.4800 $1.8000 $1.7600 $1.7700 30 pr-16 $1.9030 $1.8300 $1.6300 $1.8900 $1.6100 $1.9200 $1.9800 $1.9800 31 May-16 $1.9950 $1.9200 $1.7900 $2.0400 $1.7300 $2.0900 $2.0500 $2.0800 32 Jun-16 $1.9630 $1.8800 $1.7700 $1.9400 $1.7600 $2.0000 $1.9400 $1.9700 33 Jul-16 $2.9170 $2.8500 $2.5300 $2.8000 $2.6600 $2.9600 $2.8700 $2.8900 34 ug-16 $2.6720 $2.5900 $2.4700 $2.6700 $2.4300 $2.7300 $2.5900 $2.6200 35 Sep-16 $2.8530 $2.8000 $2.6000 $2.8100 $2.5900 $2.8100 $2.8200 $2.8500 36 Oct-16 $2.9520 $2.8800 $2.7200 $2.9600 $2.6900 $2.9700 $2.8900 $2.9200 37 Nov-16 $2.7640 $2.6900 $2.5500 $2.8100 $2.5500 $2.8300 $2.8000 $2.8300 38 Dec-16 $3.2320 $3.1900 $3.0000 $3.2500 $3.0400 $3.3900 $3.2000 $3.3100 39 Jan-17 $3.9300 $3.8900 $3.7400 $4.1700 $3.6900 $4.2500 $4.0200 $4.0900 40 Feb-17 $3.3910 $3.3100 $3.1100 $3.4000 $3.1900 $3.1200 $3.3900 $3.4000 41 Mar-17 $2.6270 $2.5200 $2.3400 $2.6300 $2.3400 $2.7000 $2.6400 $2.6300 42 pr-17 $3.1750 $3.1000 $2.7200 $3.0100 $2.7100 $3.1400 $3.1100 $3.1500 43 May-17 $3.1420 $3.0600 $2.6600 $2.9200 $2.6700 $3.0200 $3.0700 $3.1000 44 Jun-17 $3.2360 $3.1500 $2.8800 $3.0900 $2.8200 $3.2000 $3.1400 $3.2000 45 Jul-17 $3.0670 $2.9600 $2.7300 $2.8800 $2.6800 $2.9300 $2.9400 $2.9800 46 ug-17 $2.9690 $2.8800 $2.6300 $2.8300 $2.5700 $2.9000 $2.8500 $2.8800 47 Sep-17 $2.9610 $2.8700 $2.6300 $2.7900 $2.5600 $2.9300 $2.8800 $2.9200 48 Oct-17 $2.9740 $2.8400 $2.5800 $2.8200 $2.5000 $2.8800 $2.8200 $2.8500 49 Nov-17 $2.7520 $2.6200 $2.4100 $2.8300 $2.3700 $0.0000 $2.6600 $2.6900 50 Dec-17 $3.0740 $2.9900 $2.7400 $3.1000 $2.6700 $3.1900 $3.0200 $3.0800 51 Jan-18 $2.7380 $2.6600 $2.5800 $3.0700 $2.4000 $0.0000 $2.6900 $2.7800 52 Feb-18 $3.6310 $3.5300 $2.8500 $4.2200 $2.8100 $3.9100 $3.4200 $4.0200 53 Mar-18 $2.6390 $2.5200 $2.1600 $2.5200 $2.0700 $2.5900 $2.4900 $2.5600 54 pr-18 $2.6910 $2.5700 $1.9500 $2.4600 $1.9600 $2.5600 $2.5400 $2.5900 55 May-18 $2.8210 $2.6900 $2.0300 $2.5800 $2.0500 $0.0000 $2.7000 $2.7400 56 Jun-18 $2.8750 $2.7000 $2.2200 $2.7000 $2.2100 $0.0000 $2.6600 $2.7100 57 Jul-18 $2.9960 $2.8100 $2.2600 $2.7800 $2.2400 $2.8200 $2.8200 $2.8300 58 ug-18 $2.8220 $2.7100 $2.3400 $2.7300 $2.3400 $2.8000 $2.8300 $2.8600 59 Sep-18 $2.8950 $2.7800 $2.2400 $2.7500 $2.2200 $2.7600 $2.8700 $2.9000 60 Oct-18 $3.0210 $2.8400 $2.2000 $2.9300 $2.1200 $2.9100 $2.9200 $2.9200 61 FIRST OF MONTH INSIDE FERC PUBLISHED PRICE 62 Forecast Basis NR L NR OK Chicago PEPL NR ML7 MichCon Consumers 63 Winter -0.1530-0.4775 0.0360-0.5300 0.1622-0.1715-0.1215 64 Summer -0.1596-0.6468-0.2504-0.7129-0.1278-0.1954-0.1796 65 nnual -0.1569-0.5763-0.1310-0.6367-0.0070-0.1854-0.1554
MICHIGN PUBLIC SERVICE COMMISSION MICHIGN GS UTILITIES CORPORTION U-20239 Exhibit -5 (RTL-5) Page 3 of 3 Witness: Russell T. Laursen ll BTU at 14.65 psig unless noted 2017 2018 Line PIPELINE & NOTES October November December January February March pril May June July ugust September VG BTU 1 PEPL Reg. vg. 1,047.9 1,058.5 1,055.3 1,054.1 1,055.6 1,058.1 1,056.1 1,052.1 1,054.3 1,053.4 1,052.5 1,056.0 1,054.5 2 NR Reg. vg. Group 1 1,047.4 1,049.9 1,046.2 1,046.9 1,047.1 1,048.4 1,054.8 1,047.5 1,072.3 1,070.7 1,066.8 1,063.7 1,055.1 3 NR Reg. vg. Group 2 1,047.8 1,048.0 1,053.6 1,059.3 1,056.6 1,058.8 1,061.6 1,056.7 1,058.5 1,056.1 1,060.0 1,059.8 1,056.4 4 NR Reg. vg. Group 3 1,052.2 1,047.7 1,051.5 1,059.6 1,058.9 1,061.0 1,058.7 1,054.3 1,053.8 1,052.2 1,054.4 1,057.2 1,055.1 5 NR TOTL VERGE 1,049.1 1,048.5 1,050.4 1,055.3 1,054.2 1,056.1 1,058.4 1,052.8 1,061.5 1,059.6 1,060.4 1,060.2 1,055.5 6 DTE vg. 14.65 (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 1,038.0 1,037.0 Note 1 1,035.7 1,036.7 Note 1 1,043.5 1,000.0 1,035.5 1,036.2 1,033.3 8 PIPELINE VERGE 1,046.4 1,051.0 1,048.9 1,051.4 1,054.5 1,052.4 1,053.6 1,052.6 1,056.5 1,046.5 1,053.8 1,054.6 1,050.9 Note 1: No Flow, therefore no Btu vailable.
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -6 (RTL-6) Page 1 Witness: Russell T. Laursen SUMMRY OF 2019-2024 SOURCES OF SUPPLY Mcf @ 14.65 Dry Line Source of Supply 2019-20 2020-21 2021-22 2022-23 2023-24 1 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 0 0 0 0 0 9 Other 0 0 0 0 0 10 Production 43,200 43,200 43,200 43,200 43,200 11 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 3,700,000 13 Washington 10 0 0 0 0 0 14 MGU 2,445,000 2,445,000 2,445,000 2,445,000 2,445,000 15 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 3,700,000 17 Washington 10 0 0 0 0 0 18 MGU 2,445,000 2,445,000 2,445,000 2,445,000 2,445,000 19 Total Storage Withdrawals 6,145,000 6,145,000 6,145,000 6,145,000 6,145,000 20 Total GCR Supply 18,689,128 18,962,031 18,765,138 18,897,841 19,005,522
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 1 of 22 Witness: Russell T. Laursen SUMMRY OF COST OF GS Line Description 2019-20 2020-21 2021-22 2022-23 2023-24 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 $126,400 10 Other Commodity Charges $459,414 $627,323 $626,035 $628,809 $631,203 11 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 $2,367,000 13 NR Firm Transportation Service (FTS) $916,640 $916,640 $916,640 $916,640 $916,640 14 PEPL Enhanced Firm Transportation (EFT) $2,215,950 $2,215,950 $2,215,950 $2,215,950 $2,215,950 15 Vector Firm Transport (FT) $208,662 $208,662 $208,662 $208,662 $208,662 16 DTE Transport (FT) $75,665 $75,665 $75,665 $75,665 $75,665 17 Washington 10 Storage Service $0 $0 $0 $0 $0 18 NR No-Notice Service (NNS) $996,875 $996,875 $996,875 $996,875 $996,875 19 NR Firm Storage Service (FSS) $3,284,258 $3,284,258 $3,284,258 $3,284,258 $3,284,258 20 NR ETS Between MGU & NR FSS $2,753,195 $2,753,195 $2,753,195 $2,753,195 $2,753,195 21 Total Demand $12,818,245 $12,818,245 $12,818,245 $12,818,245 $12,818,245 22 Total Purchased and Produced $66,158,512 $68,915,441 $70,098,720 $72,395,703 $74,694,741 23 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 $74,654,459 25 2018-19 Projected (Over) Recovery $ 956,180 26 Total Projected GCR Costs $67,022,918 $68,874,248 $70,061,094 $72,356,557 $74,654,459 27 Total GCR Supply 18,689,128 18,962,031 18,765,138 18,897,841 19,005,522
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 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 1 2019-20 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 2 2020-21 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 3 2021-22 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 4 2022-23 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 5 2023-24 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 43,200 Price (1) 6 2019-20 $2.5736 $2.4556 $2.4706 $2.4940 $2.4898 $2.4648 $2.4860 $2.5250 $2.6788 $2.7964 $2.7346 $2.5110 7 2020-21 $2.6624 $2.5408 $2.5563 $2.5804 $2.5760 $2.5503 $2.5721 $2.6123 $2.7707 $2.8918 $2.8282 $2.5979 8 2021-22 $2.7538 $2.6286 $2.6445 $2.6693 $2.6649 $2.6384 $2.6609 $2.7022 $2.8654 $2.9902 $2.9246 $2.6874 9 2022-23 $2.8480 $2.7190 $2.7354 $2.7610 $2.7564 $2.7291 $2.7522 $2.7949 $2.9629 $3.0914 $3.0239 $2.7796 10 2023-24 $2.9450 $2.8122 $2.8290 $2.8554 $2.8506 $2.8225 $2.8464 $2.8903 $3.0634 $3.1957 $3.1262 $2.8745 Cost (2) 11 2019-20 $9,265 $8,840 $8,894 $8,978 $8,963 $8,873 $8,950 $9,090 $9,644 $10,067 $9,845 $9,040 $110,448 12 2020-21 $9,584 $9,147 $9,203 $9,289 $9,274 $9,181 $9,260 $9,404 $9,975 $10,411 $10,181 $9,352 $114,261 13 2021-22 $9,914 $9,463 $9,520 $9,610 $9,594 $9,498 $9,579 $9,728 $10,315 $10,765 $10,529 $9,675 $118,188 14 2022-23 $10,253 $9,788 $9,847 $9,940 $9,923 $9,825 $9,908 $10,061 $10,667 $11,129 $10,886 $10,006 $122,233 15 2023-24 $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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 3 of 22 GCR Supply llocation - Volume (mcf @ 14.65) Witness: Russell T. Laursen 2019-20 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 1,013,670 974,478 933,955 1,039,760 1,217,973 406,805 834,314 1,032,839 960,744 656,886 11,981,499 2 NR ETS SW 113,685 117,474 113,685 117,474 117,474 113,685 117,474 198,949 205,580 205,580 185,685 205,580 1,812,326 3 NR ETS SE 426,318 440,529 426,318 440,529 440,529 426,318 440,529 207,856 440,529 440,529 397,897 440,529 4,968,410 4 NR FTS CHI 142,106 146,843 142,106 146,843 146,843 142,106 146,843 0 188,205 386,730 377,162 10,777 1,976,564 5 NR ML7 783,481 739,639 331,561 269,632 229,109 357,651 513,127 0 0 0 0 0 3,224,199 6 PEPL 0 0 0 0 0 0 0 536,136 842,673 893,377 836,237 686,495 3,794,918 7 VECTOR 343,273 434,000 420,000 434,000 434,000 420,000 334,238 0 0 0 0 0 2,819,511 8 DTE 0 0 0 0 0 0 0 0 10,000 20,000 20,000 0 50,000 9 CONSUMERS POWER 0 0 0 0 0 0 0 0 0 0 0 0 0 10 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 43,200 11 OTHER 0 0 0 0 0 0 0 0 0 0 0 0 0 12 TOTL GCR PURCHSES 1,812,463 1,882,085 1,437,270 1,412,078 1,371,555 1,463,360 1,555,811 946,541 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 320,000 620,000 600,000 620,000 620,000 600,000 320,000 0 0 0 0 0 3,700,000 14 MGU 200,410 414,180 400,820 414,180 414,180 400,820 200,410 0 0 0 0 0 2,445,000 15 16 TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000,820 520,410 0 0 0 0 0 6,145,000 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 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 3,700,000 18 MGU 100,000 0 0 0 0 0 50,000 300,000 450,000 595,000 535,000 415,000 2,445,000 19 20 TOTL WITHDRWLS 100,000 0 0 0 0 0 50,000 920,000 1,230,000 1,375,000 1,305,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,392,053 847,905 436,450 377,898 337,375 462,540 1,085,401 1,866,541 2,920,587 3,324,816 3,125,581 2,511,981 18,689,128 22 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 4 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen 2019-20 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 $ - $ 155,596 10 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 $ 110,448 12 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 $ 45,338 15 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 $ 110,132 16 NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 2,424 $ 4,980 $ 4,857 $ 139 $ 25,454 17 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 $ 89,168 18 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 $ 270,092 19 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 24,479 $ 38,475 $ 40,790 $ 38,181 $ 31,344 $ 173,271 20 VECTOR $ 471 $ 596 $ 576 $ 596 $ 596 $ 576 $ 459 $ - $ - $ - $ - $ - $ 3,869 21 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 $ 447,231 24 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 5 of 22 Supply Prices ($ per Mcf @ 14.65 dry) and Cost of Gas Witness: Russell T. Laursen 2019-20 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 $ 3,284,258 10 NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753,195 11 PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215,950 12 Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208,662 13 DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75,665 14 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 $12,818,245 17 Total Purchased and Produced (Line 5 + 15 $ 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 $ 66,158,511 18 Cost/Mcf of Purchased and Produced $3.4301 $3.1821 $3.2602 $3.2856 $3.2922 $3.2589 $3.2705 $4.3713 $3.8143 $3.8324 $3.8308 $3.8768 $3.5399
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 6 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen 2019-20 LINE Description pril May June July ugust September October November December January February March Total NR 30 31 30 31 31 30 31 30 31 31 28 31 1 Beginning working gas - Mcf 259,021 579,021 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 2 + Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) 0 0 0 0 0 (3,700,000) 3 -Withdrawals 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 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 1,009,021 259,021 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 $2,906,664 6 + 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 $10,715,432 7 - 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 10 10 Beginning working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 11 + Injections 0 0 0 0 0 0 0 0 0 0 0 0 0 12 -Withdrawals 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Ending working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 14 Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 15 + Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 16 - 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 136,988 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,681,988 1,086,988 551,988 20 + Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) 0 0 0 0 0 (2,445,000) 21 -Withdrawals 100,000 0 0 0 0 0 50,000 300,000 450,000 595,000 535,000 415,000 2,445,000 22 Ending working gas - Mcf 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,681,988 1,086,988 551,988 136,988 23 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 $1,667,433 24 + 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 $6,930,305 25 - 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 $413,810 27 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 $3.02 28 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 1,561,009 396,009 41,170,468 30 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 $122,164,590 31 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 7 of 22 GCR Supply llocation - Volume (mcf @ 14.65) Witness: Russell T. Laursen 2020-21 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 1,001,958 955,848 942,667 1,035,143 1,518,682 420,329 840,754 1,047,367 917,675 655,314 12,240,809 2 NR ETS SW 113,685 117,474 113,685 117,474 117,474 113,685 117,474 198,949 205,580 205,580 185,685 205,580 1,812,326 3 NR ETS SE 426,318 440,529 426,318 440,529 440,529 426,318 440,529 221,380 440,529 440,529 397,897 440,529 4,981,934 4 NR FTS CHI 142,106 146,843 142,106 146,843 146,843 142,106 146,843 0 194,645 401,258 334,093 9,205 1,952,891 5 NR ML7 798,547 719,570 319,849 251,002 237,821 353,034 813,836 0 0 0 0 0 3,493,658 6 PEPL 0 0 0 0 0 0 0 544,397 851,010 903,019 817,859 687,741 3,804,026 7 VECTOR 346,730 434,000 420,000 434,000 434,000 420,000 335,266 0 0 0 0 0 2,823,996 8 DTE 0 0 0 0 0 0 0 0 10,000 20,000 20,000 0 50,000 9 CONSUMERS POWER 0 0 0 0 0 0 0 0 0 0 0 0 0 10 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 43,200 11 OTHER 0 0 0 0 0 0 0 0 0 0 0 0 0 12 TOTL GCR PURCHSES 1,830,986 1,862,016 1,425,558 1,393,448 1,380,267 1,458,743 1,857,548 968,326 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 320,000 620,000 600,000 620,000 620,000 600,000 320,000 0 0 0 0 0 3,700,000 14 MGU 200,410 414,180 400,820 414,180 414,180 400,820 200,410 0 0 0 0 0 2,445,000 15 16 TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000,820 520,410 0 0 0 0 0 6,145,000 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 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 3,700,000 18 MGU 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 19 20 TOTL WITHDRWLS 100,000 0 0 0 0 0 50,000 920,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,410,576 827,836 424,738 359,268 346,087 457,923 1,387,138 1,888,326 2,941,364 3,348,986 3,058,134 2,511,655 18,962,031 22 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 8 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen 2020-21 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 $ - $ 160,557 10 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 $ 114,261 12 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 $ 45,338 15 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 $ 110,432 16 NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 2,507 $ 5,167 $ 4,302 $ 119 $ 25,149 17 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 $ 92,638 18 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 $ 273,557 19 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 24,856 $ 38,856 $ 41,231 $ 37,342 $ 31,401 $ 173,686 20 VECTOR $ 476 $ 596 $ 576 $ 596 $ 596 $ 576 $ 460 $ - $ - $ - $ - $ - $ 3,875 21 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 $ 451,118 24 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 9 of 22 Supply Prices ($ per Mcf @ 14.65 dry) and Cost of Gas Witness: Russell T. Laursen 2020-21 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 $ 3,284,258 10 NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753,195 11 PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215,950 12 Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208,662 13 DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75,665 14 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 $12,818,245 17 Total Purchased and Produced (Line 5 + 15 $ 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 $ 68,915,801 18 Cost/Mcf of Purchased and Produced $3.5463 $3.2890 $3.3695 $3.3957 $3.3936 $3.3574 $3.3286 $4.4302 $3.9040 $3.9233 $3.9579 $3.9682 $3.6344
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 10 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen 2020-21 LINE Description pril May June July ugust September October November December January February March Total NR 30 31 30 31 31 30 31 30 31 31 28 31 1 Beginning working gas - Mcf 259,021 579,021 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 2 + Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) 0 0 0 0 0 (3,700,000) 3 -Withdrawals 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 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 1,009,021 259,021 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 $3,008,156 6 + 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 $11,056,721 7 - 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 10 10 Beginning working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 11 + Injections 0 0 0 0 0 0 0 0 0 0 0 0 0 12 -Withdrawals 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Ending working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 14 Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 15 + Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 16 - 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 136,988 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 20 + Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) 0 0 0 0 0 (2,445,000) 21 -Withdrawals 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 22 Ending working gas - Mcf 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 136,988 23 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 $1,728,440 24 + 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 $7,152,470 25 - 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 $428,950 27 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 $3.13 28 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 1,561,009 396,009 41,158,468 30 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 $126,636,879 31 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 11 of 22 GCR Supply llocation - Volume (mcf @ 14.65) Witness: Russell T. Laursen 2021-22 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 1,408,797 994,005 951,292 941,119 1,035,734 1,235,233 435,476 859,781 1,071,525 928,333 666,714 12,010,891 2 NR ETS SW 113,685 117,474 113,685 117,474 117,474 113,685 117,474 198,949 205,580 205,580 185,685 205,580 1,812,326 3 NR ETS SE 426,318 440,529 426,318 440,529 440,529 426,318 440,529 236,527 440,529 440,529 397,897 440,529 4,997,081 4 NR FTS CHI 142,106 146,843 142,106 146,843 146,843 142,106 146,843 0 213,672 425,416 344,751 20,605 2,018,134 5 NR ML7 800,773 703,951 311,896 246,446 236,273 353,625 530,387 0 0 0 0 0 3,183,350 6 PEPL 0 0 0 0 0 0 0 551,651 859,554 912,467 820,695 690,982 3,835,349 7 VECTOR 346,785 434,000 420,000 434,000 434,000 420,000 336,913 0 0 0 0 0 2,825,698 8 DTE 0 0 0 0 0 0 0 0 10,000 20,000 20,000 0 50,000 9 CONSUMERS POWER 0 0 0 0 0 0 0 0 0 0 0 0 0 10 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 43,200 11 OTHER 0 0 0 0 0 0 0 0 0 0 0 0 0 12 TOTL GCR PURCHSES 1,833,267 1,846,397 1,417,605 1,388,892 1,378,719 1,459,334 1,575,746 990,727 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 320,000 620,000 600,000 620,000 620,000 600,000 320,000 0 0 0 0 0 3,700,000 14 MGU 200,410 414,180 400,820 414,180 414,180 400,820 200,410 0 0 0 0 0 2,445,000 15 16 TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000,820 520,410 0 0 0 0 0 6,145,000 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 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 3,700,000 18 MGU 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 19 20 TOTL WITHDRWLS 100,000 0 0 0 0 0 50,000 920,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,412,857 812,217 416,785 354,712 344,539 458,514 1,105,336 1,910,727 2,968,935 3,382,592 3,071,628 2,526,296 18,765,138 22 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 12 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen 2021-22 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 $ - $ 165,667 10 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 $ 118,188 12 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 $ 45,338 15 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 $ 110,768 16 NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 2,752 $ 5,478 $ 4,440 $ 265 $ 25,989 17 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 $ 88,642 18 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 $ 270,737 19 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 25,188 $ 39,246 $ 41,662 $ 37,472 $ 31,549 $ 175,117 20 VECTOR $ 476 $ 596 $ 576 $ 596 $ 596 $ 576 $ 462 $ - $ - $ - $ - $ - $ 3,877 21 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 $ 449,731 24 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 13 of 22 Supply Prices ($ per Mcf @ 14.65 dry) and Cost of Gas Witness: Russell T. Laursen 2021-22 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 $ 3,284,258 10 NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753,195 11 PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215,950 12 Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208,662 13 DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75,665 14 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 $12,818,245 17 Total Purchased and Produced (Line 5 + 15 $ 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 $ 70,098,722 18 Cost/Mcf of Purchased and Produced $3.6424 $3.3833 $3.4641 $3.4905 $3.4877 $3.4502 $3.4578 $4.4897 $3.9903 $4.0148 $4.0535 $4.0513 $3.7356
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 14 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen 2021-22 LINE Description pril May June July ugust September October November December January February March Total NR 30 31 30 31 31 30 31 30 31 31 28 31 1 Beginning working gas - Mcf 259,021 579,021 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 2 + Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) 0 0 0 0 0 (3,700,000) 3 -Withdrawals 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 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 1,009,021 259,021 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 $3,100,659 6 + 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 $11,393,616 7 - 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 10 10 Beginning working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 11 + Injections 0 0 0 0 0 0 0 0 0 0 0 0 0 12 -Withdrawals 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Ending working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 14 Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 15 + Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 16 - 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 136,988 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 20 + Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) 0 0 0 0 0 (2,445,000) 21 -Withdrawals 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 22 Ending working gas - Mcf 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 136,988 23 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 $1,784,370 24 + 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 $7,381,299 25 - 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 $442,831 27 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 $3.23 28 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 1,561,009 396,009 41,158,468 30 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 $130,647,791 31 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 15 of 22 GCR Supply llocation - Volume (mcf @ 14.65) Witness: Russell T. Laursen 2022-23 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 1,405,233 994,209 953,311 944,878 1,041,345 1,246,468 452,428 879,650 1,092,363 937,727 674,741 12,114,665 2 NR ETS SW 113,685 117,474 113,685 117,474 117,474 113,685 117,474 198,949 205,580 205,580 185,685 205,580 1,812,326 3 NR ETS SE 426,318 440,529 426,318 440,529 440,529 426,318 440,529 253,479 440,529 440,529 397,897 440,529 5,014,033 4 NR FTS CHI 142,106 146,843 142,106 146,843 146,843 142,106 146,843 0 233,541 446,254 354,145 28,632 2,076,262 5 NR ML7 810,203 700,387 312,100 248,465 240,032 359,236 541,622 0 0 0 0 0 3,212,044 6 PEPL 0 0 0 0 0 0 0 557,814 866,403 919,455 822,742 692,973 3,859,387 7 VECTOR 348,980 434,000 420,000 434,000 434,000 420,000 339,609 0 0 0 0 0 2,830,589 8 DTE 0 0 0 0 0 0 0 0 10,000 20,000 20,000 0 50,000 9 CONSUMERS POWER 0 0 0 0 0 0 0 0 0 0 0 0 0 10 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 43,200 11 OTHER 0 0 0 0 0 0 0 0 0 0 0 0 0 12 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 320,000 620,000 600,000 620,000 620,000 600,000 320,000 0 0 0 0 0 3,700,000 14 MGU 200,410 414,180 400,820 414,180 414,180 400,820 200,410 0 0 0 0 0 2,445,000 15 16 TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000,820 520,410 0 0 0 0 0 6,145,000 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 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 3,700,000 18 MGU 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 19 20 TOTL WITHDRWLS 100,000 0 0 0 0 0 50,000 920,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,424,482 808,653 416,989 356,731 348,298 464,125 1,119,267 1,933,842 2,995,653 3,410,418 3,083,069 2,536,314 18,897,841 22 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 16 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen 2022-23 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 $ - $ 170,931 10 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 $ 122,233 12 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 $ 45,338 15 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 $ 111,144 16 NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 3,007 $ 5,747 $ 4,561 $ 369 $ 26,737 17 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 $ 89,011 18 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 $ 272,231 19 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 25,469 $ 39,559 $ 41,981 $ 37,565 $ 31,640 $ 176,214 20 VECTOR $ 479 $ 596 $ 576 $ 596 $ 596 $ 576 $ 466 $ - $ - $ - $ - $ - $ 3,884 21 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 $ 452,329 24 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 17 of 22 Supply Prices ($ per Mcf @ 14.65 dry) and Cost of Gas Witness: Russell T. Laursen 2022-23 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 $ 3,284,258 10 NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753,195 11 PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215,950 12 Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208,662 13 DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75,665 14 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 $12,818,245 17 Total Purchased and Produced (Line 5 + 15 $ 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 $ 72,395,704 18 Cost/Mcf of Purchased and Produced $3.7395 $3.4791 $3.5600 $3.5868 $3.5836 $3.5450 $3.5519 $4.5531 $4.0808 $4.1121 $4.1533 $4.1410 $3.8309
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 18 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen 2022-23 LINE Description pril May June July ugust September October November December January February March Total NR 30 31 30 31 31 30 31 30 31 31 28 31 1 Beginning working gas - Mcf 259,021 579,021 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 2 + Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) 0 0 0 0 0 (3,700,000) 3 -Withdrawals 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 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 1,009,021 259,021 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 $3,198,011 6 + 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 $11,751,842 7 - 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 10 10 Beginning working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 11 + Injections 0 0 0 0 0 0 0 0 0 0 0 0 0 12 -Withdrawals 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Ending working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 14 Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 15 + Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 16 - 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 136,988 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 20 + Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) 0 0 0 0 0 (2,445,000) 21 -Withdrawals 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 22 Ending working gas - Mcf 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 136,988 23 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 $1,841,408 24 + 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 $7,616,993 25 - 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 $456,986 27 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 $3.34 28 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 1,561,009 396,009 41,158,468 30 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 $134,773,910 31 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 19 of 22 GCR Supply llocation - Volume (mcf @ 14.65) Witness: Russell T. Laursen 2023-24 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 1,402,150 994,167 954,237 946,654 1,043,733 1,251,126 458,588 885,353 1,099,673 983,486 676,954 12,194,274 2 NR ETS SW 113,685 117,474 113,685 117,474 117,474 113,685 117,474 198,949 205,580 205,580 185,685 205,580 1,812,326 3 NR ETS SE 426,318 440,529 426,318 440,529 440,529 426,318 440,529 259,639 440,529 440,529 397,897 440,529 5,020,193 4 NR FTS CHI 142,106 146,843 142,106 146,843 146,843 142,106 146,843 0 239,244 453,564 399,904 30,845 2,137,247 5 NR ML7 816,044 697,304 312,058 249,391 241,808 361,624 546,280 0 0 0 0 0 3,224,508 6 PEPL 0 0 0 0 0 0 0 560,227 868,619 922,042 841,088 692,964 3,884,940 7 VECTOR 350,501 434,000 420,000 434,000 434,000 420,000 340,607 0 0 0 0 0 2,833,108 8 DTE 0 0 0 0 0 0 0 0 10,000 20,000 20,000 0 50,000 9 CONSUMERS POWER 0 0 0 0 0 0 0 0 0 0 0 0 0 10 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 43,200 11 OTHER 0 0 0 0 0 0 0 0 0 0 0 0 0 12 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 320,000 620,000 600,000 620,000 620,000 600,000 320,000 0 0 0 0 0 3,700,000 14 MGU 200,410 414,180 400,820 414,180 414,180 400,820 200,410 0 0 0 0 0 2,445,000 15 16 TOTL INJECTED 520,410 1,034,180 1,000,820 1,034,180 1,034,180 1,000,820 520,410 0 0 0 0 0 6,145,000 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 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 3,700,000 18 MGU 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 19 20 TOTL WITHDRWLS 100,000 0 0 0 0 0 50,000 920,000 1,236,000 1,375,000 1,299,000 1,165,000 6,145,000 ERROR ERROR 21 TOTL GCR SUPPLY 1,431,844 805,570 416,947 357,657 350,074 466,513 1,124,923 1,942,415 3,003,572 3,420,315 3,147,174 2,538,518 19,005,522 22 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 20 of 22 GCR Supply llocation - Cost Witness: Russell T. Laursen 2023-24 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 $ - $ 176,352 10 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 $ 126,400 12 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 $ 45,338 15 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 $ 111,280 16 NR FTS CHI $ 1,830 $ 1,891 $ 1,830 $ 1,891 $ 1,891 $ 1,830 $ 1,891 $ - $ 3,081 $ 5,841 $ 5,150 $ 397 $ 27,523 17 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 $ 89,172 18 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 $ 273,313 19 PEPL EFT $ - $ - $ - $ - $ - $ - $ - $ 25,579 $ 39,660 $ 42,099 $ 38,403 $ 31,640 $ 177,381 20 VECTOR $ 481 $ 596 $ 576 $ 596 $ 596 $ 576 $ 467 $ - $ - $ - $ - $ - $ 3,888 21 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 $ 454,581 24 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
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 21 of 22 Supply Prices ($ per Mcf @ 14.65 dry) and Cost of Gas Witness: Russell T. Laursen 2023-24 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 $ 3,284,258 10 NR ETS Between MGU & NR FSS $ 216,104 $ - $ - $ - $ - $ - $ - $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 507,418 $ 2,753,195 11 PEPL Enhanced Firm Transportation (EFT) $ - $ - $ - $ - $ - $ - $ - $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 443,190 $ 2,215,950 12 Vector (FT) $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ 29,809 $ - $ - $ - $ - $ - $ 208,662 13 DTE Transport (FT) $ - $ - $ - $ - $ - $ - $ - $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 15,133 $ 75,665 14 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 $12,818,245 17 Total Purchased and Produced (Line 5 + 15 $ 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 $ 74,694,742 18 Cost/Mcf of Purchased and Produced $3.8404 $3.5777 $3.6589 $3.6863 $3.6827 $3.6432 $3.6503 $4.6414 $4.1832 $4.2187 $4.2327 $4.2397 $3.9302
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -7 (RTL-7) Page 22 of 22 GCR Supply llocation - Storage Witness: Russell T. Laursen 2023-24 LINE Description pril May June July ugust September October November December January February March Total NR 30 31 30 31 31 30 31 30 31 31 28 31 1 Beginning working gas - Mcf 259,021 579,021 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 2 + Injections (320,000) (620,000) (600,000) (620,000) (620,000) (600,000) (320,000) 0 0 0 0 0 (3,700,000) 3 -Withdrawals 0 0 0 0 0 0 0 620,000 780,000 780,000 770,000 750,000 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 1,009,021 259,021 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 $3,298,181 6 + 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 $12,119,882 7 - 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 10 10 Beginning working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 11 + Injections 0 0 0 0 0 0 0 0 0 0 0 0 0 12 -Withdrawals 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Ending working gas - Mcf 0 0 0 0 0 0 0 0 0 0 0 0 14 Beginning working gas - Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 15 + Cost of Gas Injected $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 16 - 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 136,988 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 20 + Injections (200,410) (414,180) (400,820) (414,180) (414,180) (400,820) (200,410) 0 0 0 0 0 (2,445,000) 21 -Withdrawals 100,000 0 0 0 0 0 50,000 300,000 456,000 595,000 529,000 415,000 2,445,000 22 Ending working gas - Mcf 237,398 651,578 1,052,398 1,466,578 1,880,758 2,281,578 2,431,988 2,131,988 1,675,988 1,080,988 551,988 136,988 23 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 $1,900,111 24 + 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 $7,859,758 25 - 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 $471,554 27 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 $3.44 28 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 1,561,009 396,009 41,158,468 30 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 $139,022,180 31 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
STTE OF MICHIGN BEFORE THE MICHIGN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of ) MICHIGN GS UTILITIES CORPORTION ) Case No. U-20239 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
INTRODUCTION ND QULIFICTIONS 1 2 3 4 5 6 7 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 53203. Q FOR WHOM RE YOU PROVIDING TESTIMONY? 8 I am providing testimony on behalf of MGUC. 9 10 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 12 13 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 15 16 17 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? 18 19 I am presenting testimony supporting MGUC s 2019-2020 forecast of normal load requirements for the Company s service territory. 2
1 2 3 4 5 6 7 8 9 10 11 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 2019-2020 GCR & GCC CUSTOMER NORML LOD REQUIREMENTS. 12 13 14 15 16 17 18 19 20 21 22 23 24 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 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 2002-2017 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. 20 21 22 23 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 2015. The customer classes included in the weighted average methodology were 4
1 2 3 4 5 6 7 8 9 10 11 12 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 2018-2019 GCR FORECST? 13 14 15 16 17 18 19 20 21 22 Yes. Total sales for 2019-2020 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-18414 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
Total GCR Sales Volume by Rate Class Case No. U-20239 Fcst 201810 JMS Exhibit -8 (JMS-1) MCF - Calendar Month GCR Sales Page 1 of 3 Witness: John M. Schmid 2019 2020 12 MOS. pril May June July ugust September October November December January February March TOTL Res 906,175 548,679 241,436 193,505 178,580 253,623 698,395 1,235,817 1,984,974 2,263,230 2,127,169 1,704,663 12,336,246 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 396,629 226,726 133,099 130,224 107,328 155,220 322,256 548,654 825,462 940,400 875,095 696,622 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 79,146 760,167 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,373,553 836,105 429,550 372,798 331,775 457,140 1,073,601 1,845,141 2,885,487 3,284,516 3,086,781 2,480,681 18,457,128 1,373,303 835,855 429,300 372,548 331,525 456,890 1,073,351 1,844,891 2,885,237 3,284,266 3,086,531 2,480,431 2020 2021 12 MOS. pril May June July ugust September October November December January February March TOTL Res 916,844 531,901 234,929 190,238 177,864 255,325 711,147 1,260,442 2,012,313 2,294,868 2,079,850 1,710,601 12,376,322 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 405,089 224,853 130,204 116,382 116,517 149,626 319,057 544,724 819,064 932,839 856,519 690,469 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 79,035 753,265 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,391,976 816,236 417,938 354,368 340,387 452,623 1,082,738 1,866,726 2,906,064 3,308,485 3,020,034 2,480,355 18,437,930 1,391,726 815,986 417,688 354,118 340,137 452,373 1,082,488 1,866,476 2,905,814 3,308,235 3,019,784 2,480,105 2021 2022 12 MOS. pril May June July ugust September October November December January February March TOTL Res 923,566 520,096 230,529 188,162 177,559 256,765 720,575 1,278,850 2,033,591 2,319,618 2,084,883 1,716,893 12,451,087 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 400,888 221,825 127,816 114,539 115,207 149,078 320,427 548,088 825,233 941,348 865,291 698,671 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 78,982 749,940 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,394,157 800,817 410,085 349,812 338,839 453,214 1,093,336 1,888,927 2,933,335 3,341,692 3,033,428 2,494,796 18,532,438 1,393,907 800,567 409,835 349,562 338,589 452,964 1,093,086 1,888,677 2,933,085 3,341,442 3,033,178 2,494,546 2022 2023 12 MOS. pril May June July ugust September October November December January February March TOTL Res 929,496 512,670 227,957 187,120 177,709 258,168 727,696 1,292,133 2,048,397 2,336,814 2,087,879 1,720,461 12,506,500 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 406,647 225,970 131,106 117,907 118,783 153,332 327,234 557,413 837,030 951,804 873,834 705,047 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 78,956 748,334 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,405,682 797,253 410,289 351,831 342,598 458,725 1,107,167 1,911,742 2,959,853 3,369,318 3,044,769 2,504,714 18,663,941 1,405,432 797,003 410,039 351,581 342,348 458,475 1,106,917 1,911,492 2,959,603 3,369,068 3,044,519 2,504,464 2023 2024 12 MOS. pril May June July ugust September October November December January February March TOTL Res 932,994 507,149 226,069 186,275 177,648 258,763 731,063 1,298,225 2,053,611 2,343,441 2,137,227 1,719,630 12,572,095 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 410,590 228,645 133,200 119,827 120,605 155,195 329,469 559,794 839,675 954,986 888,086 708,094 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 78,944 747,561 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,413,044 794,270 410,247 352,757 344,374 461,113 1,112,723 1,920,315 2,967,672 3,379,115 3,108,274 2,506,918 18,770,822
Total GCC Sales Volume by Rate Class Case No. U-20239 Fcst 201810 JMS Exhibit -8 (JMS-1) MCF - Calendar Month GCC Sales Page 2 of 3 Witness: John M. Schmid 2019 2020 12 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 37,881 104,167 183,603 293,654 334,261 314,030 251,771 1,827,906 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 95,536 54,499 31,997 31,224 25,640 36,961 76,185 128,109 190,995 217,372 202,046 161,000 1,251,564 Large GS 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - Total 230,695 136,296 68,021 60,113 52,310 74,842 180,352 311,712 484,649 551,633 516,076 412,771 3,079,470 2020 2021 12 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 37,850 105,339 186,154 296,226 337,306 305,556 251,382 1,823,210 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 93,810 52,248 30,403 27,259 27,352 35,204 75,028 127,558 191,401 217,959 199,990 161,258 1,239,470 Large GS 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - Total 229,316 130,858 65,161 55,428 53,706 73,054 180,367 313,712 487,627 555,265 505,546 412,640 3,062,680 2021 2022 12 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 37,831 106,092 187,816 297,828 339,263 304,787 251,031 1,824,670 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 93,675 51,898 29,971 26,886 27,057 35,034 75,207 128,151 192,458 219,237 201,177 162,267 1,243,018 Large GS 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - Total 229,464 128,358 63,889 54,588 53,210 72,865 181,299 315,967 490,286 558,500 505,964 413,298 3,067,688 2022 2023 12 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 37,813 106,514 188,728 298,486 340,135 303,785 250,362 1,823,512 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 94,368 52,434 30,447 27,388 27,590 35,618 75,934 129,010 193,438 219,853 201,708 162,711 1,250,499 Large GS 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - Total 230,315 127,404 63,802 54,781 53,614 73,431 182,448 317,738 491,924 559,988 505,493 413,073 3,074,011 2023 2024 12 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 37,717 106,507 188,801 298,065 339,796 309,776 249,267 1,825,492 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 94,750 52,781 30,777 27,698 27,884 35,889 76,138 129,129 193,449 219,864 204,296 162,813 1,255,468 Large GS 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - Total 230,557 126,592 63,697 54,835 53,772 73,606 182,645 317,930 491,514 559,660 514,072 412,080 3,080,960
Total GCR + GCC Sales Volume by Rate Class Case No. U-20239 Fcst 201810 JMS Exhibit -8 (JMS-1) MCF - Calendar Month Total Sales (GCR + GCC) Page 3 of 3 Witness: John M. Schmid 2019 2020 12 MOS. pril May June July ugust September October November December January February March TOTL Res 1,041,334 630,476 277,460 222,394 205,250 291,504 802,562 1,419,420 2,278,628 2,597,491 2,441,199 1,956,434 14,164,152 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 492,165 281,225 165,096 161,448 132,968 192,181 398,441 676,763 1,016,457 1,157,772 1,077,141 857,622 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 79,146 760,167 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,604,248 972,401 497,571 432,911 384,085 531,982 1,253,953 2,156,853 3,370,136 3,836,149 3,602,857 2,893,452 21,536,598 2020 2021 12 MOS. pril May June July ugust September October November December January February March TOTL Res 1,052,350 610,511 269,687 218,407 204,218 293,175 816,486 1,446,596 2,308,539 2,632,174 2,385,406 1,961,983 14,199,532 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 498,899 277,101 160,607 143,641 143,869 184,830 394,085 672,282 1,010,465 1,150,798 1,056,509 851,727 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 79,035 753,265 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,621,292 947,094 483,099 409,796 394,093 525,677 1,263,105 2,180,438 3,393,691 3,863,750 3,525,580 2,892,995 21,500,610 2021 2022 12 MOS. pril May June July ugust September October November December January February March TOTL Res 1,059,355 596,556 264,447 215,864 203,712 294,596 826,667 1,466,666 2,331,419 2,658,881 2,389,670 1,967,924 14,275,757 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 494,563 273,723 157,787 141,425 142,264 184,112 395,634 676,239 1,017,691 1,160,585 1,066,468 860,938 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 78,982 749,940 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,623,621 929,175 473,974 404,400 392,049 526,079 1,274,635 2,204,894 3,423,621 3,900,192 3,539,392 2,908,094 21,600,126 2022 2023 12 MOS. pril May June July ugust September October November December January February March TOTL Res 1,065,443 587,640 261,312 214,513 203,733 295,981 834,210 1,480,861 2,346,883 2,676,949 2,391,664 1,970,823 14,330,012 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 501,015 278,404 161,553 145,295 146,373 188,950 403,168 686,423 1,030,468 1,171,657 1,075,542 867,758 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 78,956 748,334 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,635,997 924,657 474,091 406,612 396,212 532,156 1,289,615 2,229,480 3,451,777 3,929,306 3,550,262 2,917,787 21,737,952 2023 2024 12 MOS. pril May June July ugust September October November December January February March TOTL Res 1,068,801 580,960 258,989 213,412 203,536 296,480 837,570 1,487,026 2,351,676 2,683,237 2,447,003 1,968,897 14,397,587 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - Small GS 505,340 281,426 163,977 147,525 148,489 191,084 405,607 688,923 1,033,124 1,174,850 1,092,382 870,907 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 78,944 747,561 Gas Light 250 250 250 250 250 250 250 250 250 250 250 250 3,000 Total 1,643,601 920,862 473,944 407,592 398,146 534,719 1,295,368 2,238,245 3,459,186 3,938,775 3,622,346 2,918,998 21,851,782
Fcst 201810 JMS Total GCR Customer Count By Rate Class Case No. U-20239 Exhibit -9 (JMS-2) Page 1 of 3 Witness: John M. Schmid 2019 2020 12 MOS. pril May June July ugust September October November December January February March verage Res 141,675 141,693 141,520 141,384 141,283 141,219 141,363 141,865 142,416 142,654 142,716 142,650 141,870 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 46 46 47 46 46 46 47 47 47 47 47 47 47 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 153,014 153,011 152,792 152,640 152,536 152,464 152,645 153,241 153,851 154,101 154,176 154,098 153,214 2020 2021 12 MOS. pril May June July ugust September October November December January February March verage Res 142,554 142,559 142,407 142,285 142,191 142,126 142,237 142,656 143,124 143,342 143,411 143,369 142,688 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 47 47 47 47 47 47 47 47 47 47 47 47 47 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 153,979 153,946 153,739 153,582 153,463 153,373 153,490 153,956 154,447 154,667 154,743 154,699 154,007 2021 2022 12 MOS. pril May June July ugust September October November December January February March verage Res 143,299 143,314 143,199 143,109 143,043 142,998 143,100 143,459 143,860 144,052 144,120 144,097 143,471 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 47 47 47 47 47 47 47 47 48 48 48 48 47 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 154,623 154,624 154,483 154,382 154,310 154,258 154,374 154,776 155,207 155,414 155,501 155,491 154,787 2022 2023 12 MOS. pril May June July ugust September October November December January February March verage Res 144,052 144,076 143,988 143,920 143,873 143,846 143,941 144,249 144,588 144,749 144,804 144,783 144,239 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 48 48 48 48 48 48 48 48 48 48 48 48 48 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 155,455 155,480 155,382 155,312 155,265 155,237 155,344 155,682 156,038 156,205 156,267 156,249 155,660 2023 2024 12 MOS. pril May June July ugust September October November December January February March verage Res 144,743 144,761 144,684 144,622 144,576 144,544 144,616 144,872 145,161 145,304 145,359 145,349 144,883 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 48 48 48 48 48 48 48 49 49 49 49 49 48 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 156,209 156,223 156,136 156,069 156,021 155,987 156,066 156,344 156,647 156,798 156,862 156,858 156,352
Fcst 201810 JMS Total GCC Customer Count By Rate Class Case No. U-20239 Exhibit -9 (JMS-2) Page 2 of 3 Witness: John M. Schmid 2019 2020 12 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 0 0 0 0 0 0 0 0 0 0 0 0 - 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 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - 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 23,756 2020 2021 12 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 0 0 0 0 0 0 0 0 0 0 0 0 - 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 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - 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 2021 2022 12 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 0 0 0 0 0 0 0 0 0 0 0 0 - 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 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - 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 2022 2023 12 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 0 0 0 0 0 0 0 0 0 0 0 0 - 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 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - 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 2023 2024 12 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 0 0 0 0 0 0 0 0 0 0 0 0 - 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 0 0 0 0 0 0 0 0 0 0 0 0 - Gas Light 0 0 0 0 0 0 0 0 0 0 0 0 - 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
Fcst 201810 JMS Total Customer Count By Rate Class Case No. U-20239 Exhibit -9 (JMS-2) Page 3 of 3 Witness: John M. Schmid 2019 2020 12 MOS. pril May June July ugust September October November December January February March verage Res 162,806 162,816 162,636 162,492 162,383 162,311 162,447 162,942 163,485 163,723 163,785 163,719 162,962 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 46 46 47 46 46 46 47 47 47 47 47 47 47 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 176,862 176,840 176,604 176,433 176,310 176,220 176,382 176,961 177,552 177,802 177,877 177,799 176,970 2020 2021 12 MOS. pril May June July ugust September October November December January February March verage Res 163,623 163,628 163,476 163,354 163,260 163,195 163,306 163,725 164,193 164,411 164,480 164,438 163,757 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 47 47 47 47 47 47 47 47 47 47 47 47 47 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 177,680 177,647 177,440 177,283 177,164 177,074 177,191 177,657 178,148 178,368 178,444 178,400 177,708 2021 2022 12 MOS. pril May June July ugust September October November December January February March verage Res 164,368 164,383 164,268 164,178 164,112 164,067 164,169 164,528 164,929 165,121 165,189 165,166 164,540 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 47 47 47 47 47 47 47 47 48 48 48 48 47 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 178,324 178,325 178,184 178,083 178,011 177,959 178,075 178,477 178,908 179,115 179,202 179,192 178,488 2022 2023 12 MOS. pril May June July ugust September October November December January February March verage Res 165,121 165,145 165,057 164,989 164,942 164,915 165,010 165,318 165,657 165,818 165,873 165,852 165,308 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 48 48 48 48 48 48 48 48 48 48 48 48 48 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 179,156 179,181 179,083 179,013 178,966 178,938 179,045 179,383 179,739 179,906 179,968 179,950 179,361 2023 2024 12 MOS. pril May June July ugust September October November December January February March verage Res 165,812 165,830 165,753 165,691 165,645 165,613 165,685 165,941 166,230 166,373 166,428 166,418 165,952 MulF 0 0 0 0 0 0 0 0 0 0 0 0 - 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 48 48 48 48 48 48 48 49 49 49 49 49 48 Gas Light 12 12 12 12 12 12 12 12 12 12 12 12 12 Total 179,910 179,924 179,837 179,770 179,722 179,688 179,767 180,045 180,348 180,499 180,563 180,559 180,053
Case No. U-20239 MICHIGN GS UTILITIES DISTRICTS Exhibit -10 (JMS-3) Gas nnual Requirements Forecast - Fcst201810 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 2019 241,130 24,047 231,663 2,861 48,071 31,737 199,974 356,003 7,639 59,107 114,639 56,683 1,373,553 May 2019 150,417 12,314 130,854 2,112 38,843 20,348 130,765 215,136 4,818 38,949 61,195 30,355 836,105 Jun 2019 70,782 5,888 58,687 689 30,740 13,982 70,343 109,921 1,877 18,003 32,998 15,640 429,550 Jul 2019 69,450 6,155 56,527 990 27,892 13,027 57,348 76,736 1,784 16,313 32,356 14,221 372,798 ug 2019 59,399 2,820 47,283 1,831 25,749 9,701 55,272 87,773 1,343 13,996 17,782 8,827 331,775 Sep 2019 83,524 7,027 75,751 97 28,316 17,317 83,354 80,990 3,037 23,003 36,671 18,053 457,140 Oct 2019 186,899 9,099 176,868 2,326 34,343 38,102 166,403 283,508 4,934 64,538 72,932 33,650 1,073,601 Nov 2019 294,504 14,430 309,289 8,234 41,040 55,668 239,829 521,437 17,400 131,305 159,500 52,506 1,845,141 Dec 2019 516,321 25,118 469,832 12,869 62,789 98,527 364,151 821,971 27,496 178,669 211,064 96,678 2,885,487 Jan 2020 604,630 46,585 588,063 13,366 68,687 87,152 442,573 870,879 22,209 179,856 233,867 126,651 3,284,516 Feb 2020 551,819 43,217 534,799 11,285 71,869 83,728 438,662 816,036 21,264 152,762 247,620 113,719 3,086,781 Mar 2020 449,797 39,402 419,601 8,937 62,047 65,574 352,375 668,194 17,673 129,854 181,140 86,086 2,480,681 Total 3,278,671 236,102 3,099,217 65,597 540,387 534,863 2,601,047 4,908,583 131,475 1,006,354 1,401,764 653,069 18,457,128 Total pr 2020 244,654 24,411 234,969 2,895 47,869 32,228 202,532 360,555 7,756 60,061 116,471 57,574 1,391,976 May 2020 146,996 12,025 127,997 2,048 38,022 19,894 127,576 209,205 4,709 38,193 59,884 29,685 816,236 Jun 2020 68,975 5,737 57,083 671 29,538 13,645 68,420 107,035 1,830 17,557 32,193 15,254 417,938 Jul 2020 65,028 5,834 53,601 972 27,089 12,165 55,011 74,181 1,676 15,369 29,923 13,519 354,368 ug 2020 61,692 2,880 48,713 1,825 25,889 9,856 56,418 89,684 1,403 14,492 18,384 9,151 340,387 Sep 2020 82,254 6,896 74,763 97 27,951 17,079 82,625 81,328 3,002 22,670 36,037 17,921 452,623 Oct 2020 188,193 9,182 177,850 2,366 34,181 38,432 167,892 287,488 4,940 64,983 73,257 33,973 1,082,738 Nov 2020 297,646 14,620 312,148 8,395 41,633 56,248 243,481 529,696 17,587 131,975 160,211 53,085 1,866,726 Dec 2020 519,489 25,288 472,490 13,040 62,808 99,062 367,359 830,509 27,647 179,311 211,774 97,286 2,906,064 Jan 2021 608,546 46,914 591,122 13,541 68,861 87,681 446,408 880,419 22,335 180,285 234,993 127,381 3,308,485 Feb 2021 539,805 42,269 523,271 11,034 70,806 81,897 429,176 798,058 20,799 149,460 242,225 111,233 3,020,034 Mar 2021 449,371 39,379 419,147 8,964 62,002 65,512 352,529 669,444 17,661 129,518 180,823 86,008 2,480,355 Total 3,272,650 235,435 3,093,152 65,848 536,649 533,700 2,599,428 4,917,601 131,344 1,003,873 1,396,177 652,071 18,437,930 Total pr 2021 244,883 24,437 234,998 2,915 47,728 32,241 202,992 362,291 7,762 59,939 116,402 57,570 1,394,157 May 2021 144,226 11,792 125,678 2,003 37,571 19,518 125,141 204,843 4,619 37,524 58,774 29,127 800,817 Jun 2021 67,689 5,630 56,008 658 28,943 13,393 67,133 105,036 1,796 17,231 31,597 14,971 410,085 Jul 2021 64,152 5,760 52,904 961 26,728 12,001 54,328 73,305 1,654 15,166 29,503 13,349 349,812 ug 2021 61,307 2,867 48,471 1,822 25,911 9,816 56,195 89,280 1,393 14,407 18,275 9,094 338,839 Sep 2021 82,308 6,898 74,812 97 27,800 17,100 82,758 81,722 3,007 22,688 36,055 17,968 453,214 Oct 2021 189,988 9,278 179,426 2,397 34,148 38,827 169,552 290,895 4,980 65,604 73,910 34,331 1,093,336 Nov 2021 301,124 14,803 315,627 8,517 41,981 56,906 246,626 536,750 17,795 133,293 161,788 53,716 1,888,927 Dec 2021 524,374 25,530 476,829 13,178 62,957 99,994 370,859 838,854 27,907 180,937 213,703 98,213 2,933,335 Jan 2022 614,710 47,395 596,978 13,686 69,116 88,575 450,905 889,667 22,562 182,057 237,365 128,676 3,341,692 Feb 2022 542,482 42,470 525,980 11,064 70,711 82,333 430,850 800,794 20,906 150,375 243,637 111,825 3,033,428 Mar 2022 452,296 39,629 421,858 9,000 62,092 65,945 354,432 672,581 17,775 130,502 182,112 86,573 2,494,796 Total 3,289,539 236,491 3,109,569 66,297 535,687 536,649 2,611,772 4,946,018 132,155 1,009,724 1,403,123 655,414 18,532,438 Total pr 2022 247,079 24,662 237,102 2,934 47,742 32,547 204,582 364,961 7,834 60,553 117,557 58,128 1,405,682 May 2022 143,845 11,751 125,479 1,976 37,381 19,481 124,462 202,832 4,608 37,610 58,744 29,085 797,253 Jun 2022 67,972 5,617 56,032 651 28,690 13,515 67,057 104,671 1,801 17,409 31,829 15,045 410,289 Jul 2022 64,899 5,803 53,255 956 26,581 12,155 54,461 73,320 1,671 15,308 29,988 13,434 351,831 ug 2022 62,265 2,896 49,079 1,824 25,958 9,895 56,716 90,167 1,417 14,617 18,534 9,232 342,598 Sep 2022 83,642 7,028 75,853 98 27,778 17,378 83,726 82,221 3,052 23,047 36,706 18,197 458,725 Oct 2022 192,631 9,403 181,915 2,422 34,199 39,357 171,650 294,178 5,062 66,523 75,041 34,786 1,107,167 Nov 2022 304,881 14,981 319,631 8,606 42,207 57,627 249,376 542,815 18,019 135,143 164,070 54,387 1,911,742 Dec 2022 529,399 25,774 481,371 13,275 63,132 100,990 373,965 845,803 28,185 182,825 215,972 99,162 2,959,853 Jan 2023 619,969 47,801 602,138 13,789 69,331 89,347 454,501 896,654 22,760 183,740 239,483 129,804 3,369,318 Feb 2023 544,781 42,638 528,364 11,084 70,704 82,710 432,220 802,843 20,998 151,202 244,888 112,338 3,044,769 Mar 2023 454,350 39,804 423,768 9,021 62,158 66,249 355,715 674,572 17,854 131,218 183,034 86,970 2,504,714 Total 3,315,713 238,157 3,133,986 66,637 535,861 541,250 2,628,432 4,975,036 133,262 1,019,194 1,415,846 660,568 18,663,941 Total pr 2023 248,491 24,806 238,464 2,946 47,763 32,745 205,591 366,602 7,881 60,958 118,308 58,490 1,413,044 May 2023 143,475 11,713 125,259 1,955 37,274 19,441 123,913 201,292 4,597 37,641 58,677 29,033 794,270 Jun 2023 68,118 5,604 56,026 646 28,569 13,586 66,977 104,356 1,803 17,517 31,961 15,083 410,247 Jul 2023 65,287 5,822 53,423 952 26,509 12,235 54,496 73,252 1,680 15,379 30,250 13,470 352,757 ug 2023 62,732 2,909 49,370 1,824 25,980 9,929 56,956 90,572 1,429 14,718 18,657 9,298 344,374 Sep 2023 84,223 7,084 76,306 99 27,764 17,498 84,145 82,433 3,072 23,203 36,989 18,296 461,113 Oct 2023 193,662 9,453 182,872 2,433 34,215 39,568 172,500 295,610 5,092 66,881 75,467 34,970 1,112,723 Nov 2023 306,260 15,050 321,053 8,646 42,306 57,889 250,501 545,327 18,101 135,744 164,802 54,636 1,920,315 Dec 2023 530,842 25,845 482,663 13,309 63,178 101,271 374,923 848,020 28,263 183,338 216,585 99,436 2,967,672 Jan 2024 621,814 47,944 603,923 13,829 69,407 89,617 455,799 899,242 22,829 184,304 240,211 130,196 3,379,115 Feb 2024 556,158 43,552 539,053 11,343 71,265 84,438 441,381 820,891 21,440 154,194 249,880 114,682 3,108,274 Mar 2024 454,908 39,848 424,300 9,019 62,165 66,332 355,946 674,664 17,875 131,463 183,320 87,078 2,506,918 Total 3,335,970 239,630 3,152,712 67,001 536,394 544,549 2,643,129 5,002,261 134,062 1,025,339 1,425,108 664,667 18,770,822
Case No. U-20239 MICHIGN GS UTILITIES DISTRICTS Exhibit -10 (JMS-3) Gas nnual Requirements Forecast - Fcst201810 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 2019 56,250 4,935 49,827 251 1,338 5,627 26,053 38,124 1,715 11,046 25,033 10,497 230,695 May 2019 35,009 2,571 27,656 193 879 3,583 16,520 22,774 1,080 7,218 13,166 5,648 136,296 Jun 2019 15,994 1,159 12,041 75 315 2,643 9,052 12,801 418 3,282 7,396 2,846 68,021 Jul 2019 16,459 1,136 11,334 100 368 2,410 6,460 8,660 403 2,972 7,508 2,303 60,113 ug 2019 14,027 571 9,033 85 319 1,080 7,062 11,850 385 2,479 3,952 1,466 52,310 Sep 2019 18,934 1,426 15,988 138 519 3,283 11,030 7,797 562 4,240 8,185 2,739 74,842 Oct 2019 44,885 1,844 38,309 555 965 6,262 20,993 32,768 1,551 10,781 15,986 5,453 180,352 Nov 2019 74,898 2,745 66,342 740 1,172 9,035 28,856 57,634 2,802 24,504 33,904 9,079 311,712 Dec 2019 127,942 5,481 99,777 1,266 2,747 16,288 45,122 91,082 4,707 31,248 42,978 16,010 484,649 Jan 2020 142,494 8,607 124,966 1,080 3,064 14,320 55,696 92,582 4,908 33,043 49,597 21,277 551,633 Feb 2020 130,030 8,497 113,276 980 3,228 13,799 55,438 86,876 4,781 27,565 52,327 19,280 516,076 Mar 2020 105,725 7,734 89,592 796 2,368 10,754 44,904 70,456 3,931 23,323 38,323 14,866 412,771 Total 782,645 46,706 658,141 6,261 17,282 89,084 327,188 533,404 27,242 181,700 298,354 111,463 3,079,470 Total pr 2020 55,981 4,906 49,526 252 1,328 5,580 25,878 37,986 1,705 10,924 24,844 10,407 229,316 May 2020 33,616 2,469 26,552 185 844 3,439 15,859 21,871 1,037 6,926 12,639 5,422 130,858 Jun 2020 15,329 1,113 11,554 72 300 2,523 8,668 12,272 401 3,130 7,078 2,722 65,161 Jul 2020 15,169 1,048 10,533 97 338 2,175 5,948 8,108 372 2,717 6,804 2,119 55,428 ug 2020 14,386 579 9,255 85 331 1,108 7,254 12,179 394 2,564 4,046 1,524 53,706 Sep 2020 18,460 1,379 15,625 138 502 3,188 10,728 7,752 547 4,115 7,951 2,671 73,054 Oct 2020 44,942 1,847 38,290 561 958 6,252 20,938 32,890 1,550 10,746 15,944 5,450 180,367 Nov 2020 75,515 2,768 66,754 750 1,179 9,077 29,089 58,104 2,816 24,541 33,988 9,132 313,712 Dec 2020 128,788 5,517 100,395 1,277 2,763 16,372 45,406 91,687 4,732 31,394 43,198 16,099 487,627 Jan 2021 143,493 8,663 125,770 1,089 3,082 14,404 56,060 93,253 4,940 33,205 49,905 21,401 555,265 Feb 2021 127,238 8,318 111,001 955 3,166 13,547 54,317 84,958 4,680 27,108 51,334 18,924 505,546 Mar 2021 105,677 7,731 89,563 795 2,368 10,755 44,894 70,410 3,929 23,333 38,320 14,865 412,640 Total 778,594 46,337 654,818 6,256 17,158 88,419 325,037 531,470 27,104 180,702 296,050 110,735 3,062,680 Total pr 2021 56,029 4,909 49,558 252 1,328 5,581 25,891 38,026 1,706 10,922 24,853 10,409 229,464 May 2021 32,938 2,420 26,048 180 830 3,381 15,575 21,403 1,016 6,827 12,412 5,329 128,358 Jun 2021 15,025 1,089 11,316 71 295 2,479 8,501 12,027 393 3,078 6,944 2,672 63,889 Jul 2021 14,939 1,032 10,371 96 333 2,143 5,858 7,982 366 2,677 6,704 2,087 54,588 ug 2021 14,254 574 9,170 84 328 1,098 7,187 12,066 391 2,539 4,009 1,509 53,210 Sep 2021 18,410 1,374 15,586 138 500 3,179 10,697 7,744 545 4,102 7,926 2,664 72,865 Oct 2021 45,184 1,856 38,484 565 962 6,282 21,036 33,081 1,558 10,795 16,018 5,478 181,299 Nov 2021 76,090 2,789 67,230 756 1,187 9,139 29,309 58,545 2,836 24,688 34,201 9,196 315,967 Dec 2021 129,489 5,547 100,942 1,284 2,778 16,461 45,653 92,186 4,758 31,566 43,434 16,187 490,286 Jan 2022 144,328 8,714 126,503 1,095 3,100 14,488 56,386 93,796 4,969 33,399 50,196 21,525 558,500 Feb 2022 127,275 8,322 111,110 954 3,171 13,572 54,367 84,957 4,683 27,183 51,414 18,958 505,964 Mar 2022 105,812 7,744 89,705 795 2,373 10,782 44,977 70,463 3,934 23,413 38,402 14,899 413,298 Total 779,773 46,370 656,024 6,269 17,185 88,585 325,435 532,276 27,155 181,188 296,515 110,912 3,067,688 Total pr 2022 56,216 4,927 49,742 253 1,334 5,606 25,993 38,140 1,712 10,979 24,957 10,455 230,315 May 2022 32,643 2,399 25,859 177 826 3,366 15,486 21,172 1,008 6,823 12,341 5,304 127,404 Jun 2022 14,989 1,081 11,260 69 298 2,494 8,496 11,993 392 3,103 6,950 2,677 63,802 Jul 2022 14,994 1,035 10,386 95 334 2,163 5,881 7,977 368 2,692 6,759 2,096 54,781 ug 2022 14,358 576 9,234 84 332 1,106 7,242 12,162 393 2,565 4,036 1,527 53,614 Sep 2022 18,561 1,390 15,701 138 506 3,209 10,794 7,754 550 4,142 8,002 2,685 73,431 Oct 2022 45,458 1,868 38,733 567 970 6,324 21,181 33,265 1,568 10,871 16,129 5,513 182,448 Nov 2022 76,502 2,804 67,609 760 1,194 9,192 29,469 58,863 2,852 24,839 34,407 9,248 317,738 Dec 2022 129,895 5,565 101,277 1,287 2,788 16,523 45,803 92,474 4,776 31,692 43,598 16,245 491,924 Jan 2023 144,710 8,737 126,841 1,098 3,108 14,527 56,537 94,044 4,982 33,490 50,331 21,583 559,988 Feb 2023 127,108 8,312 111,019 951 3,170 13,570 54,320 84,827 4,677 27,194 51,392 18,953 505,493 Mar 2023 105,731 7,740 89,655 793 2,373 10,783 44,960 70,383 3,931 23,430 38,397 14,898 413,073 Total 781,166 46,435 657,316 6,272 17,232 88,864 326,160 533,054 27,209 181,820 297,299 111,185 3,074,011 Total pr 2023 56,259 4,932 49,795 252 1,336 5,615 26,025 38,158 1,714 11,004 24,993 10,473 230,557 May 2023 32,398 2,382 25,698 175 823 3,352 15,407 20,983 1,001 6,814 12,278 5,281 126,592 Jun 2023 14,952 1,075 11,212 69 300 2,504 8,487 11,960 390 3,120 6,949 2,679 63,697 Jul 2023 15,010 1,036 10,381 94 335 2,174 5,888 7,963 368 2,699 6,788 2,098 54,835 ug 2023 14,397 577 9,257 83 334 1,109 7,264 12,201 394 2,576 4,046 1,535 53,772 Sep 2023 18,610 1,396 15,734 137 508 3,220 10,828 7,742 552 4,157 8,029 2,692 73,606 Oct 2023 45,502 1,870 38,777 567 971 6,332 21,210 33,289 1,570 10,886 16,151 5,520 182,645 Nov 2023 76,544 2,806 67,650 760 1,195 9,198 29,485 58,895 2,854 24,858 34,431 9,254 317,930 Dec 2023 129,774 5,560 101,192 1,285 2,786 16,513 45,763 92,387 4,773 31,676 43,572 16,234 491,514 Jan 2024 144,615 8,732 126,770 1,097 3,106 14,520 56,504 93,978 4,979 33,480 50,304 21,573 559,660 Feb 2024 129,321 8,455 112,889 969 3,222 13,788 55,238 86,325 4,758 27,613 52,234 19,259 514,072 Mar 2024 105,455 7,721 89,439 790 2,368 10,763 44,859 70,175 3,921 23,401 38,319 14,869 412,080 Total 782,837 46,542 658,793 6,280 17,283 89,090 326,958 534,057 27,274 182,284 298,095 111,468 3,080,960
Case No. U-20239 MICHIGN GS UTILITIES DISTRICTS Exhibit -10 (JMS-3) Gas nnual Requirements Forecast - Fcst201810 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 2019 297,380 28,982 281,489 3,112 49,409 37,364 226,026 394,127 9,354 70,153 139,671 67,180 1,604,248 May 2019 185,425 14,885 158,510 2,304 39,722 23,931 147,286 237,909 5,898 46,167 74,361 36,003 972,401 Jun 2019 86,776 7,047 70,728 764 31,055 16,625 79,394 122,722 2,295 21,285 40,394 18,486 497,571 Jul 2019 85,909 7,291 67,861 1,091 28,259 15,437 63,808 85,396 2,187 19,285 39,863 16,523 432,911 ug 2019 73,426 3,390 56,316 1,916 26,068 10,781 62,334 99,623 1,729 16,475 21,735 10,293 384,085 Sep 2019 102,458 8,453 91,739 235 28,836 20,600 94,384 88,787 3,598 27,243 44,856 20,792 531,982 Oct 2019 231,784 10,943 215,177 2,881 35,308 44,364 187,396 316,275 6,485 75,319 88,919 39,103 1,253,953 Nov 2019 369,402 17,175 375,631 8,974 42,213 64,703 268,685 579,071 20,202 155,809 193,404 61,584 2,156,853 Dec 2019 644,263 30,600 569,609 14,136 65,536 114,815 409,273 913,053 32,204 209,917 254,042 112,689 3,370,136 Jan 2020 747,123 55,192 713,029 14,446 71,751 101,472 498,269 963,461 27,117 212,899 283,464 147,927 3,836,149 Feb 2020 681,849 51,714 648,075 12,265 75,097 97,527 494,100 902,912 26,045 180,327 299,947 132,999 3,602,857 Mar 2020 555,521 47,136 509,193 9,734 64,414 76,328 397,280 738,650 21,604 153,176 219,463 100,952 2,893,452 Total 4,061,316 282,808 3,757,358 71,857 557,669 623,947 2,928,235 5,441,987 158,717 1,188,054 1,700,118 764,532 21,536,598 Total pr 2020 300,635 29,317 284,495 3,147 49,197 37,809 228,409 398,541 9,461 70,985 141,315 67,981 1,621,292 May 2020 180,613 14,494 154,549 2,233 38,866 23,333 143,435 231,076 5,746 45,119 72,523 35,107 947,094 Jun 2020 84,304 6,850 68,637 743 29,838 16,168 77,088 119,306 2,231 20,687 39,271 17,976 483,099 Jul 2020 80,197 6,882 64,134 1,069 27,427 14,340 60,959 82,289 2,048 18,086 36,727 15,639 409,796 ug 2020 76,078 3,460 57,968 1,910 26,220 10,964 63,672 101,864 1,797 17,056 22,430 10,675 394,093 Sep 2020 100,715 8,275 90,388 234 28,452 20,267 93,353 89,080 3,548 26,784 43,988 20,592 525,677 Oct 2020 233,135 11,029 216,140 2,927 35,139 44,684 188,830 320,378 6,491 75,728 89,201 39,423 1,263,105 Nov 2020 373,160 17,388 378,902 9,145 42,812 65,326 272,570 587,799 20,404 156,515 194,200 62,217 2,180,438 Dec 2020 648,277 30,805 572,885 14,318 65,571 115,434 412,765 922,196 32,379 210,705 254,972 113,385 3,393,691 Jan 2021 752,039 55,577 716,892 14,630 71,943 102,085 502,467 973,672 27,274 213,491 284,899 148,782 3,863,750 Feb 2021 667,043 50,587 634,271 11,990 73,973 95,444 483,493 883,016 25,479 176,568 293,559 130,157 3,525,580 Mar 2021 555,048 47,110 508,710 9,759 64,369 76,267 397,424 739,854 21,589 152,851 219,142 100,873 2,892,995 Total 4,051,243 281,773 3,747,971 72,104 553,807 622,120 2,924,465 5,449,071 158,447 1,184,576 1,692,227 762,806 21,500,610 Total pr 2021 300,911 29,346 284,555 3,167 49,056 37,822 228,883 400,318 9,468 70,860 141,255 67,979 1,623,621 May 2021 177,165 14,212 151,726 2,183 38,401 22,898 140,716 226,246 5,636 44,351 71,186 34,456 929,175 Jun 2021 82,714 6,719 67,325 729 29,238 15,872 75,634 117,062 2,189 20,309 38,541 17,643 473,974 Jul 2021 79,091 6,792 63,275 1,057 27,061 14,144 60,185 81,287 2,020 17,843 36,208 15,436 404,400 ug 2021 75,561 3,441 57,642 1,906 26,239 10,914 63,381 101,347 1,783 16,946 22,285 10,603 392,049 Sep 2021 100,718 8,272 90,398 235 28,300 20,279 93,455 89,466 3,552 26,790 43,982 20,632 526,079 Oct 2021 235,172 11,135 217,911 2,962 35,110 45,109 190,588 323,976 6,538 76,398 89,928 39,809 1,274,635 Nov 2021 377,213 17,593 382,857 9,273 43,168 66,045 275,935 595,295 20,631 157,982 195,989 62,912 2,204,894 Dec 2021 653,864 31,077 577,771 14,461 65,734 116,455 416,512 931,041 32,665 212,503 257,137 114,400 3,423,621 Jan 2022 759,038 56,109 723,481 14,781 72,216 103,063 507,291 983,463 27,530 215,456 287,561 150,202 3,900,192 Feb 2022 669,757 50,791 637,090 12,018 73,883 95,905 485,217 885,751 25,589 177,558 295,050 130,782 3,539,392 Mar 2022 558,108 47,373 511,562 9,795 64,465 76,726 399,409 743,044 21,709 153,915 220,515 101,472 2,908,094 Total 4,069,312 282,861 3,765,593 72,567 552,872 625,234 2,937,207 5,478,294 159,310 1,190,911 1,699,638 766,326 21,600,126 Total pr 2022 303,296 29,589 286,844 3,187 49,076 38,153 230,575 403,101 9,547 71,532 142,514 68,584 1,635,997 May 2022 176,488 14,150 151,338 2,153 38,207 22,847 139,948 224,003 5,617 44,433 71,085 34,389 924,657 Jun 2022 82,960 6,699 67,292 721 28,988 16,009 75,553 116,663 2,193 20,512 38,779 17,722 474,091 Jul 2022 79,892 6,838 63,641 1,051 26,916 14,319 60,342 81,297 2,039 18,000 36,748 15,529 406,612 ug 2022 76,623 3,472 58,312 1,908 26,290 11,001 63,958 102,329 1,811 17,181 22,570 10,758 396,212 Sep 2022 102,204 8,417 91,554 236 28,283 20,587 94,519 89,975 3,602 27,189 44,708 20,882 532,156 Oct 2022 238,090 11,271 220,647 2,989 35,169 45,681 192,832 327,443 6,630 77,393 91,170 40,299 1,289,615 Nov 2022 381,383 17,785 387,239 9,366 43,401 66,818 278,844 601,677 20,871 159,982 198,477 63,636 2,229,480 Dec 2022 659,295 31,338 582,648 14,562 65,919 117,513 419,768 938,277 32,960 214,517 259,571 115,408 3,451,777 Jan 2023 764,679 56,538 728,979 14,887 72,439 103,874 511,038 990,698 27,742 217,230 289,813 151,387 3,929,306 Feb 2023 671,889 50,950 639,383 12,035 73,874 96,280 486,540 887,670 25,675 178,396 296,279 131,290 3,550,262 Mar 2023 560,081 47,544 513,424 9,815 64,531 77,031 400,675 744,955 21,785 154,647 221,431 101,868 2,917,787 Total 4,096,879 284,591 3,791,301 72,909 553,092 630,114 2,954,592 5,508,090 160,471 1,201,014 1,713,145 771,753 21,737,952 Total pr 2023 304,750 29,739 288,259 3,198 49,099 38,360 231,615 404,760 9,595 71,962 143,301 68,963 1,643,601 May 2023 175,873 14,095 150,957 2,130 38,096 22,793 139,320 222,275 5,599 44,455 70,955 34,313 920,862 Jun 2023 83,070 6,679 67,238 715 28,869 16,090 75,465 116,316 2,193 20,637 38,910 17,762 473,944 Jul 2023 80,297 6,859 63,804 1,046 26,844 14,410 60,384 81,215 2,048 18,078 37,038 15,569 407,592 ug 2023 77,128 3,485 58,627 1,907 26,313 11,038 64,220 102,773 1,823 17,294 22,703 10,833 398,146 Sep 2023 102,833 8,480 92,040 236 28,272 20,719 94,972 90,176 3,623 27,360 45,019 20,989 534,719 Oct 2023 239,164 11,322 221,649 3,000 35,187 45,900 193,710 328,899 6,662 77,767 91,619 40,489 1,295,368 Nov 2023 382,804 17,856 388,703 9,407 43,501 67,087 279,986 604,222 20,955 160,602 199,233 63,890 2,238,245 Dec 2023 660,616 31,404 583,855 14,595 65,963 117,784 420,687 940,407 33,036 215,013 260,157 115,670 3,459,186 Jan 2024 766,429 56,676 730,693 14,926 72,514 104,137 512,304 993,221 27,808 217,784 290,515 151,769 3,938,775 Feb 2024 685,479 52,007 651,942 12,312 74,487 98,226 496,618 907,216 26,198 181,806 302,114 133,941 3,622,346 Mar 2024 560,363 47,569 513,739 9,809 64,534 77,095 400,805 744,840 21,796 154,864 221,639 101,946 2,918,998 Total 4,118,808 286,172 3,811,505 73,281 553,677 633,639 2,970,086 5,536,318 161,336 1,207,623 1,723,202 776,135 21,851,782
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-20239 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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 54307-9001. 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 20 21 22 23 24 25 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
1 2 3 4 5 6 7 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? 8 9 10 11 12 13 14 15 16 Yes, I have. I testified before the Michigan Public Service Commission ( Commission or MPSC ) in Case Nos. U-16166 on behalf of Upper Peninsula Power Company and U-17940, U-18154, and U-18414 on behalf of MGUC. I have also testified before the Illinois Commerce Commission in Docket Nos. 12-0511/12-0512 (cons.), and Docket Nos. 11-0280/11-0281 (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. 6690-UR-123, which was Wisconsin Public Service Corporation s 2015 test year rate case. 17 3
1 2 3 4 5 6 7 8 9 10 11 12 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, 2020. Specifically, I will present and support MGUC s Design Peak Day analysis for the 2019-2020 GCR period. PLESE IDENTIFY THE EXHIBIT YOU RE SPONSORING IN THIS PROCEEDING. I am sponsoring the following exhibit: 13 Exhibit Contents 14 15 16 17 18 19 20 21 22 23 24 25 Q -11 (KRK-1) Design Peak Day nalysis DESIGN PEK DY NLYSIS WHT IS MGUC S 2019-2020 PLNNED COMBINED GCR ND GS CUSTOMER CHOICE ( GCC ) DESIGN PEK DY REQUIREMENT? s shown on page 1 of Exhibit -11, (KRK-1), the MGUC 2019-2020 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-18414 for the 2018-2019 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
1 2 3 4 5 6 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 2019-2020 PLN DESIGN WETHER CRITERI FOR ITS GCR/GCC CUSTOMERS? 7 8 9 10 11 Consistent with MGUC s two most recent GCR plans, MGUC s 2019-2020 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. 12 13 14 15 16 17 18 19 20 21 22 23 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 2019-2020 winter at a 97.5% confidence level. PLESE EXPLIN THE HISTORICL WETHER NLYSIS THT MGUC PERFORMED. 5
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 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, 1999. 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, 1999. MGUC used this hourly weather data to re-compute the daily system CDDD65 beginning with January 1, 1999. 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
1 2 3 4 5 6 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 2018-2019 DESIGN PEK DY NLYSIS? 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 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
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 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-15700 as being appropriate for the total MGUC system. Consistent with the process used in Case Nos. U-15700, U-16145, U- 16481, U-16920, U-17130, U-17331, U-17690, U-17940, U-18154, and U-18414 the Seventy-Five CDDD65 will be used again for 2019-2020 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 2019-2020 Design Peak Day process also uses the prior day design criteria of Sixty-eight CDDD65 that was approved in Case No. U-17690. DOES THIS CONCLUDE YOUR DIRECT TESTIMONY? Yes, it does. 9
MICHIGN PUBLIC SERVICE COMMISSION Case No. U-20239 MICHIGN GS UTILITIES CORPORTION Exhibit -11 (KRK-1) Design Peak Day nalysis Page 1 of 8 Witness: Kevin R. Kuse DEPRTMENTL CORRESPONDENCE Subject MGUC 2019-2020 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 ) 2019-2020 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-18414. 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-18414. 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-20239 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 CDDD65. 3. The Design Peak Day occurs on a weekday in January 2020.