Natural Gas Delivery Plan 4Th Quarter 2020 - 2030
Total Page:16
File Type:pdf, Size:1020Kb
MICHIGAN PUBLIC SERVICE COMMISSION Case No.: U-20650 Consumers Energy Company Exhibit No.: A-36 (CCD-1) Page: 1 of 112 Witness: CCDegenfelder Date: December 2019 Natural Gas Delivery Plan 4th Quarter 2020 - 2030 MICHIGAN PUBLIC SERVICE COMMISSION Case No.: U-20650 Consumers Energy Company Exhibit No.: A-36 (CCD-1) Page: 2 of 112 Witness: CCDegenfelder 4th Quarter 2020 - 2030 Date: December 2019 Natural Gas Delivery Plan Table of Contents Table of Figures ..........................................................................................................................................................5 List of Tables ...............................................................................................................................................................8 Acronyms ....................................................................................................................................................................9 I. Consumers Energy Natural Gas System ............................................................................................................ 11 A. Overview ..................................................................................................................................................... 11 B. References .................................................................................................................................................. 12 II. Executive Summary ........................................................................................................................................... 13 A. Overview ..................................................................................................................................................... 13 B. Supply ......................................................................................................................................................... 15 C. Compression ............................................................................................................................................... 16 D. Transmission ............................................................................................................................................... 16 E. Distribution ................................................................................................................................................. 17 F. Operational Capabilities ............................................................................................................................. 17 III. Consumers Energy Natural Gas Delivery Plan .................................................................................................. 19 A. Vision Statement ........................................................................................................................................ 19 B. Objectives ................................................................................................................................................... 19 C. Objectives and Goals .................................................................................................................................. 19 D. Alignment with Headline Metrics, Objectives, and 10-Year Outcomes ..................................................... 23 E. “Future Back” Scenario Modeling .............................................................................................................. 24 F. Asset Focus and Changes in the Plan ......................................................................................................... 26 IV. Pipeline Supply .................................................................................................................................................. 28 A. Overview of Pipeline Gas Commodity Cost Trends .................................................................................... 28 B. Implications for Our System and Pipeline Supply vs. Total Customer Cost Trade-Off ............................... 29 C. Ongoing Refinement of Pipeline Supply ..................................................................................................... 30 D. References .................................................................................................................................................. 31 V. Storage Asset Plan ............................................................................................................................................ 32 A. Storage Asset Description .......................................................................................................................... 32 B. Storage Asset Management ....................................................................................................................... 33 C. Storage Well Integrity Program .................................................................................................................. 38 1. Well Inspections ......................................................................................................................................... 38 Page 2 of 112 MICHIGAN PUBLIC SERVICE COMMISSION Case No.: U-20650 Consumers Energy Company Exhibit No.: A-36 (CCD-1) Page: 3 of 112 Witness: CCDegenfelder 4th Quarter 2020 - 2030 Date: December 2019 Natural Gas Delivery Plan 2. Well Rehabilitation ..................................................................................................................................... 39 3. New Well Drilling ........................................................................................................................................ 39 4. Well Plugging .............................................................................................................................................. 39 D. Storage Asset Plan ...................................................................................................................................... 40 E. Storage Asset Financials ............................................................................................................................. 41 VI. Compression Asset Plan .................................................................................................................................... 42 A. Compression Asset Description .................................................................................................................. 42 B. Compression Asset Management............................................................................................................... 46 C. Compression Asset Plan ............................................................................................................................. 53 D. Compression Asset Financials .................................................................................................................... 58 VII. Transmission Asset Plan .................................................................................................................................... 59 A. Transmission Asset Description .................................................................................................................. 59 B. Transmission Asset Management .............................................................................................................. 61 C. Transmission Asset Plan and Financials ..................................................................................................... 68 D. References .................................................................................................................................................. 68 VIII. Distribution Asset Plan ...................................................................................................................................... 70 A. Distribution Asset Description .................................................................................................................... 70 B. Distribution Asset Management ................................................................................................................ 73 1. Overview of Our Current Main and Service Remediation Program (i.e., EIRP) .......................................... 73 2. Overview of Distribution Services and Vintage Service Replacement Program ........................................ 75 3. Acceleration of vintage material remediation ........................................................................................... 78 4. Additional benefits to customers ............................................................................................................... 78 5. Acceleration approach ............................................................................................................................... 78 6. Introduction to and recommendation for regulator stations, odorizers and stands ................................. 82 7. Leak Remediation ....................................................................................................................................... 84 C. Distribution Asset Financials ...................................................................................................................... 87 D. References .................................................................................................................................................. 88 IX. Gas Safety Enhancements ................................................................................................................................