Natural Gas Delivery Plan
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4th Quarter 2021 – 2031 Natural Gas Delivery Plan F Natural Gas Delivery Plan 4th Quarter 2021 – 2031 Revision 1 Date: December 11, 2020 Page 1 of 121 4th Quarter 2021 – 2031 Natural Gas Delivery Plan Table of Contents Table of Figures .......................................................................................................................................................5 List of Tables ............................................................................................................................................................8 Acronyms ..................................................................................................................................................................9 Revision History .................................................................................................................................................... 11 I. Executive Summary ....................................................................................................................................... 12 A. Introduction ............................................................................................................................................... 12 B. Consumers Energy’s Natural Gas System .......................................................................................... 13 C. Pipeline Supply ........................................................................................................................................ 16 D. Asset Classes ........................................................................................................................................... 16 1. STORAGE .............................................................................................................................................. 16 2. COMPRESSION ..................................................................................................................................... 17 3. TRANSMISSION .................................................................................................................................... 17 4. DISTRIBUTION ...................................................................................................................................... 18 E. Operational Capabilities .......................................................................................................................... 18 F. Initiatives ................................................................................................................................................... 20 G. References................................................................................................................................................ 20 II. Consumers Energy Natural Gas Delivery Plan ......................................................................................... 21 A. Vision Statement ...................................................................................................................................... 21 B. Objectives ................................................................................................................................................. 21 C. Objectives and Goals .............................................................................................................................. 21 D. Alignment with Objectives, Goals, and Outcomes.............................................................................. 24 E. “Future Back” Scenario Modeling .......................................................................................................... 26 F. Asset Focus and Changes in the Plan ................................................................................................. 28 G. References................................................................................................................................................ 29 III. Pipeline Supply ............................................................................................................................................... 30 A. Overview of Pipeline Gas Commodity Cost Trends ........................................................................... 30 B. Ongoing Refinement of Supply Plans ................................................................................................... 32 C. References................................................................................................................................................ 35 IV. Asset Classes ................................................................................................................................................. 36 A. Storage Asset Plan .................................................................................................................................. 36 1. STORAGE ASSET MANAGEMENT ......................................................................................................... 37 2. STORAGE WELL INTEGRITY PROGRAM ................................................................................................ 42 Page 2 of 121 4th Quarter 2021 – 2031 Natural Gas Delivery Plan 3. STORAGE FIELD ASSET PLAN ................................................................................................................ 44 4. STORAGE ASSET FINANCIALS ............................................................................................................... 46 B. Compression Asset Plan ........................................................................................................................ 47 1. COMPRESSION ASSET MANAGEMENT ................................................................................................. 50 2. COMPRESSION ASSET PLAN ................................................................................................................. 57 3. COMPRESSION ASSET FINANCIALS ...................................................................................................... 62 C. Transmission Asset Plan ........................................................................................................................ 63 1. TRANSMISSION ASSET MANAGEMENT ................................................................................................ 65 2. TRANSMISSION ASSET PLAN AND FINANCIALS .................................................................................... 70 3. REFERENCES ......................................................................................................................................... 70 D. Distribution Asset Plan ............................................................................................................................ 71 1. DISTRIBUTION ASSET MANAGEMENT.................................................................................................. 75 2. OVERVIEW OF DISTRIBUTION SERVICES AND VINTAGE SERVICE REPLACEMENT PROGRAM ............. 78 3. ACCELERATION OF VINTAGE MATERIAL REMEDIATION ...................................................................... 81 4. INTRODUCTION AND RECOMMENDATION FOR REGULATOR STATIONS, ODORIZERS AND STANDS.. 85 5. LEAK REMEDIATION ............................................................................................................................. 87 6. AUGMENTATION .................................................................................................................................. 90 7. CUSTOMER METERING ........................................................................................................................ 90 8. NEW BUSINESS ..................................................................................................................................... 92 9. DISTRIBUTION ASSET FINANCIALS ....................................................................................................... 93 10. REFERENCES ......................................................................................................................................... 93 V. Operational Capabilities ................................................................................................................................ 94 A. People – Talent and Workforce Approach ........................................................................................... 94 B. Process – Operating Systems Approach ............................................................................................. 95 1. THE CE WAY ......................................................................................................................................... 95 2. WORK MANAGEMENT ......................................................................................................................... 95 3. GAS SAFETY MANAGEMENT SYSTEMS ................................................................................................. 97 4. LOST AND UNACCOUNTED FOR GAS ................................................................................................ 103 C. Technology – Digital Approach ............................................................................................................ 104 VI. Initiatives ........................................................................................................................................................ 113 A. Gas System Decarbonization .............................................................................................................. 113 1. METHANE