February 16, Ms. Mary Jo Kunkle Executive Secretary Michigan Public Service Commission 7109 West Saginaw Hwy Lansing, MI 48917

Transcription

1 DTE Gas Company One Energy Plaza, 688 WCB Detroit, MI David S. Maquera (313) February 16, 2016 Ms. Mary Jo Kunkle Executive Secretary Michigan Public Service Commission 7109 West Saginaw Hwy Lansing, MI Re: In the matter of the Application of DTE Gas Company for approval of a Gas Cost Recovery Plan, 5-year Forecast and Monthly GCR Factor for the 12 months ending March 31, 2016 MPSC Case No. U Dear Ms. Kunkle: Attached for electronic filing in the above-referenced case is DTE Gas Company s Contingent Factor Data and Determination for the March 2016 Contingent Factor Period. Also attached is a Proof of Service. Very truly yours, David S. Maquera DSM/lah Attachments cc: Service List

2 NYMEX Natural Gas Contract Closing Prices Line Close Date 2/1/2016 2/2/2016 2/3/2016 2/4/2016 2/5/ Day Avg. (Col. 1) (Col. 2) (Col. 3) (Col. 4) (Col. 5) (Col. 6) 1 January (Close) $ February (Close) $ March (Close) $ April (Close) $ May (Close) $ June (Close) $ July (Close) $ August (Close) $ September (Close) $ October (Close) $ November (Close) $ December '15 (Close) $ January (Close) $ February (Close) $ March $ April $ May $ June $ July $ August $ September $ October $ November $ December ' $ $ Averages Jan Dec February 5 Day $ X plan $ Difference $ (1.268) 28 Incremental CF $ - DTE Gas Company Contingent Factor Data and Determination GCR Plan Period March 2016 Contingent Factor Period Case No. U March Maximum GCR Factor 29 Current GCR Factor $ Incremental CF $ - 31 Total GCR Factor $ 4.07

3 Thursday, January 28, 2016 Interconnect... from page 7 Oklahoma would mean the two plants would combine for about 50 MMcf/d more than the current capacity of Rose Valley, making Bradley the largest single-site of capacity for a processing plant in the state of Oklahoma. MIDCON INTERNAL RATE OF RETURNS (%) Anadarko Cleveland Anadarko Mississippian Source: Platts Bentek Arkoma Woodford Bakken Cana Woodford While it is clear that producers experienced an uplift from efficiencies, improved initial production rates and reductions in service costs, 2015 was still a difficult year. However, lower commodity prices had less of an impact on returns in the SCOOP, Fayetteville Granite Wash Permian Delaware Permian Midland Dec-2014 Dec-2015 SCOOP NYMEX Henry Hub gas futures contract, Jan 27 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Contract data for Tuesday Volume of contracts traded: 322,884 Feb, 6,017 ; Mar, 276,141; Apr, 1208 Total open interest: 895,870 Shale Value Chain assessments, Jan 27 Gulf Coast ethane fractionation spread Gulf Coast E/P mix fractionation spread E/P mix Midcontinent to Rockies fractionation spread E/P mix Midcontinent fractionation spread National raw NGL basket price National composite fractionation spread Jan 22-Jan 25-Jan 26-Jan 27-Jan Natural gas hub flow, Jan 27 Flow Change Price Flow Price ANR, La Florida city-gates 1, , Iroquois, receipts 1, , Kern River, Opal plant Northern, Ventura 1, , Northern, demarc 1, , Northwest, Can. bdr. (Sumas) 1, , PG&E, Malin 1, Stanfield, Ore Transco, zone 3 1, , Transco, zone 6 N.Y. 1, , Platts oil prices, Jan 27 1% Resid (1) % Resid (1) WTI (Mar) (2) No.2 (1) % Resid LP (3) % Resid HP (3) % Resid (3) % Resid (3)

4 Tuesday, February 2, 2016 Constitution gets FERC OK for tree felling Constitution Pipeline received authorization from the Federal Energy Regulatory Commission Friday to begin limited, non-mechanical tree felling, marking a major step forward for the pipeline project, which was approved by FERC in December 2014 but has yet to begin construction due to outstanding permits pertaining to Clean Water Act regulations. The partial notice-to-proceed comes with stipulations, however, that the tree felling is approved in Pennsylvania only, and so far has not been authorized in New York. Roughly 25 miles, or 20%, of the pipeline s proposed 124-mile route are located in Pennsylvania, while the remaining 99 miles are located in New York. Constitution notes that approximately one-quarter of the trees planned to be felled are located within Pennsylvania, while the remaining trees are located in New York. We appreciate FERC s prompt issuance of a limited Notice to Proceed for non-mechanized hand felling of trees in Pennsylvania, Constitution s project sponsors said in January 29 press release. And, while FERC has not yet authorized tree felling in New York, the project sponsors are optimistic that authorization will come in order for the project to meet its 2016 in-service commitment while complying with the environmental conditions set forth in the FERC Order, and in a Biological Opinion issued by the US Fish and Wildlife Service. Constitution s tree-felling request was first submitted on January 8 of this year, and was quickly met with numerous motions to stay and opposition filings by intervening parties, including individuals, environmental groups, and the Office of the New York State Attorney General. Constitution filed an answer to these motions, which argued that tree clearing is necessary now in order to comply with federal NYMEX Henry Hub gas futures contract, Feb 1 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Contract data for Friday Volume of contracts traded: 377,299 Mar, 276,450; Apr, 127,974; May, Total open interest: 923,040 Shale Value Chain assessments, Feb 1 Gulf Coast ethane fractionation spread Gulf Coast E/P mix fractionation spread E/P mix Midcontinent to Rockies fractionation spread E/P mix Midcontinent fractionation spread National raw NGL basket price National composite fractionation spread Jan 27-Jan 28-Jan 29-Jan 01-Feb Natural gas hub flow, Feb 1 Flow Change Price Flow Price ANR, La Florida city-gates 1, , Iroquois, receipts , Kern River, Opal plant Northern, Ventura 1, , Northern, demarc 1, , Northwest, Can. bdr. (Sumas) 1, , PG&E, Malin 1, Stanfield, Ore Transco, zone , Transco, zone 6 N.Y. 1, , Platts oil prices, Feb 1 1% Resid (1) % Resid (1) WTI (Mar) (2) No.2 (1) % Resid LP (3) % Resid HP (3) % Resid (3) % Resid (3)

5 Wednesday, February 3, 2016 State AG... from page 8 Porter Ranch is adjacent to the 3,600-acre storage facility. SoCal Gas confirmed Monday it had already temporarily relocated families from 4,401 homes in the area. Another 1,228 families were still in the process of being relocated. SoCal Gas has also managed to reduce pressure in the facility and lower the amount of leaking methane by about 65% since November. The company expects the leaking well to be completely sealed by the end of this month at the latest. Data collected by the California Air Resource Board showed emissions decreased from 58,000 kg/hour on November 28 to 20,700 kg/hour by the end of January. Even with the reduction, CARB estimates the facility has lost approximately 5 Bcf of gas since the leak began. The facility, which is a depleted oil field, can hold up to 86 Bcf in working gas. SoCal Gas has withdrawn from the facility at nearly double the normal rate this year to lower pressure. Potentially more federal involvement in gas storage The attorney general suit comes less than a week after a state agency, South Coast Air Quality Management District, filed a similar public nuisance suit against SoCal Gas in Los Angeles Central District Court. The suit alleges six causes of action against the company, each ranging in penalties from $10,000 to $250,000 per violation, per day. If found guilty of all allegations and if given the maximum fine, SoCal Gas could owe the state as much as $30 million. SoCal Gas also faces civil suits filed by the city and county of Los Angeles. Attorney General Harris action today is a significant step in the NYMEX Henry Hub gas futures contract, Feb 2 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Contract data for Monday Volume of contracts traded: 383,402 Mar, 276,527; Apr, 128,733; May, Total open interest: 936,354 Shale Value Chain assessments, Feb 2 Gulf Coast ethane fractionation spread Gulf Coast E/P mix fractionation spread E/P mix Midcontinent to Rockies fractionation spread E/P mix Midcontinent fractionation spread National raw NGL basket price National composite fractionation spread Jan 28-Jan 29-Jan 01-Feb 02-Feb Natural gas hub flow, Feb 2 Flow Change Price Flow Price ANR, La Florida city-gates 1, , Iroquois, receipts , Kern River, Opal plant Northern, Ventura 1, , Northern, demarc 1, , Northwest, Can. bdr. (Sumas) 1, , PG&E, Malin 1, Stanfield, Ore Transco, zone , Transco, zone 6 N.Y. 1, , Platts oil prices, Feb 2 1% Resid (1) % Resid (1) WTI (Mar) (2) No.2 (1) % Resid LP (3) % Resid HP (3) % Resid (3) % Resid (3)

6 Thursday, February 4, 2016 Spectra... from page 7 EBITDA for 2015, higher than 53% last year, while other SE units: Distribution, Western Canada and Field Service contributed less EBITDA than the prior year. Spectra Energy announced a 40.5 cents/share dividend for the fourth quarter, a 14% year-over-year increase, and Spectra Energy Partners announced 63.8 cents/unit distribution for the period, an 8.5% increase compared to last year. Demand-pull projects deliver cash Spectra s transmission business (operated under SEP) is supported by low natural gas prices which have driven up demand from the power sector as well as the residential, commercial and industrial sectors. These demand-pull projects are generally secured by fee-based contracts which ensure the stability of cash flow received, regardless of the volatility of commodity prices. However, the ability of demand-pull projects to deliver steady cash flow doesn t seem to be appreciated by equity investors. Broadly speaking, the market is not differentiating between supply-push and demand-pull projects, Nathan Judge, an energy equity analyst from Janney Montgomery Scott, said. Supply-push pipeline projects are driven by the need of exploration and production companies to transport gas to markets. The market is misunderstanding the effect of low natural gas prices to Spectra, Judge said, and the current low-price environment is much more conducive to Spectra than it was a year ago. By the end of 2015, the company reported that it had about $10 billion worth of expansion projects that are in service and deliver solid cash flow. Shale Value Chain assessments, Feb 3 Gulf Coast ethane fractionation spread Gulf Coast E/P mix fractionation spread E/P mix Midcontinent to Rockies fractionation spread E/P mix Midcontinent fractionation spread National raw NGL basket price National composite fractionation spread Natural gas hub flow, Feb 3 Flow Change Price Flow Price ANR, La Florida city-gates 1, , Iroquois, receipts Kern River, Opal plant Northern, Ventura 1, , Northern, demarc 1, , Northwest, Can. bdr. (Sumas) 1, , PG&E, Malin Stanfield, Ore Transco, zone , Transco, zone 6 N.Y. 1, , NYMEX Henry Hub gas futures contract, Feb 3 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Contract data for Tuesday Volume of contracts traded: 484,288 Mar, 280,711; Apr, 125,862; May, Total open interest: 947, Jan 29-Jan Platts oil prices, Feb 3 01-Feb 02-Feb 1% Resid (1) % Resid (1) WTI (Mar) (2) No.2 (1) % Resid LP (3) % Resid HP (3) % Resid (3) % Resid (3) Feb 9

7 Friday, February 5, 2016 Peregrine Midstream files for Chapter 11 A small, Houston-based gas midstream company this week filed for protection of the US bankruptcy courts and is working with lenders to restructure. Peregrine Midstream Partners and its affiliates Peregrine Rocky Mountains LLC, Ryckman Creek Resources Holding Company, and Ryckman Creek Resources filed for voluntary bankruptcy under Chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the District of Delaware on Tuesday. In a statement, Peregrine Midstream said it had completed a successful First Day Hearing before the court Wednesday, allowing it to access interim debtor-in-possession financing. The court provided interim approval for the companies debtor-inpossession bridge facility, providing the companies with adequate liquidity to continue operations during the Chapter 11 process, and continue ongoing discussions with their lenders to restructure the companies capital structure, Peregrine said. Filing for Chapter 11 was a difficult decision for the company and our stakeholders; however, given the significant liquidity challenges facing the company we had no alternative available, CEO Rob Foss said. The court s decision to approve debtor-in-possession financing on an interim basis for Peregrine, will provide us the ability to finalize discussions with our lenders on a restructuring plan that maximizes value for all constituents, Foss said. The company said it would continue operations at one of its principal assets, the Ryckman Creek Natural Gas Storage Facility in Uinta County, Wyoming through the Chapter 11 process. According to documents filed with the bankruptcy court, Peregrine NYMEX Henry Hub gas futures contract, Feb 4 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Contract data for Wednesday Volume of contracts traded: 304,767 Mar, 279,340; Apr, 129,547; May, Total open interest: 953,415 Shale Value Chain assessments, Feb 4 Gulf Coast ethane fractionation spread Gulf Coast E/P mix fractionation spread E/P mix Midcontinent to Rockies fractionation spread E/P mix Midcontinent fractionation spread National raw NGL basket price National composite fractionation spread Jan 01-Feb 02-Feb 03-Feb 04-Feb Natural gas hub flow, Feb 4 Flow change Price Flow Price ANR, La Florida city-gates 1, , Iroquois, receipts Kern River, Opal plant Northern, Ventura 1, , Northern, demarc 1, , Northwest, Can. bdr. (Sumas) 1, , PG&E, Malin Stanfield, Ore Transco, zone 3 1, , Transco, zone 6 N.Y. 1, , Platts oil prices, Feb 4 1% Resid (1) % Resid (1) WTI (Mar) (2) No.2 (1) % Resid LP (3) % Resid HP (3) % Resid (3) % Resid (3)

8 Monday, February 8, 2016 Xcel... from page 8 The gas reserves proposal was just one of 10 applications Xcel filed in the past few weeks with the Colorado PUC. Other proposals included rate plans, increasing solar and wind power and testing of new technology, specifically batteries to store wind and solar power during periods of low demand. Xcel wants to add 1,000 MW of solar and wind power to the grid by the year s end. And while the utility continues to close down aging, coal power plants, Stutz assured that gas will continue to play a vital role in the state s grid. The sun doesn t shine and the wind doesn t always blow so we ll continue to rely on gas, he added. Brandon Evans FERC completes review for Elba projects The Elba Liquefaction Project near Savannah, Georgia, and a related pipeline expansion cleared a key hurdle late last week when the US Federal Energy Regulatory Commission released the environmental assessment for the projects. FERC had been pressed late last year to act quickly by the units of Kinder Morgan developing the projects as well as by US senators and a congressman from Georgia, all voicing concerns that two important industrial customers and Georgia employers risked missing deadlines to comply with environmental regulations. Issued Friday, the EA covers the two-phased Elba Liquefaction Protect, proposed by Elba Liquefaction and Southern LNG, to add liquefaction and export capacity to SLNG s existing LNG terminal at Elba Island, Georgia. To supply gas to the project, Elba Express would add compression along its existing Elba Express Pipeline facility, under the so-called EEC Modification Project (CP14-103, CP14-115). Shale Value Chain assessments, Feb 5 Gulf Coast ethane fractionation spread Gulf Coast E/P mix fractionation spread E/P mix Midcontinent to Rockies fractionation spread E/P mix Midcontinent fractionation spread National raw NGL basket price National composite fractionation spread Natural gas hub flow, Feb 5 Flow Change Price Flow Price ANR, La Florida city-gates 1, , Iroquois, receipts Kern River, Opal plant Northern, Ventura 1, , Northern, demarc 1, , Northwest, Can. bdr. (Sumas) 1, , PG&E, Malin 1, Stanfield, Ore Transco, zone 3 1, , Transco, zone 6 N.Y. 1, , NYMEX Henry Hub gas futures contract, Feb 5 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Contract data for Thursday Volume of contracts traded: 337,915 Mar, 274,368; Apr, 136,864; May, Total open interest: 969, Feb 02-Feb Platts oil prices, Feb 5 03-Feb 04-Feb 1% Resid (1) % Resid (1) WTI (Mar) (2) No.2 (1) % Resid LP (3) % Resid HP (3) % Resid (3) % Resid (3) Feb 10

9 STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION In the matter of the Application of DTE ) Gas Company for approval of a Gas ) Cost Recovery Plan, 5-year Forecast and ) Monthly GCR Factor for the 12 months ) Case No. U ending March 31, 2016 ) ) STATE OF MICHIGAN ) ) ss. COUNTY OF WAYNE ) PROOF OF SERVICE TANYA MARIA CARR, being duly sworn, deposes and says that on the 16 th day of February, 2016, she served a copy of DTE Gas Company s Contingent Factor Data and Determination for the March 2016 Contingent Factor Period, via electronic mail upon the persons listed on the attached service list. Subscribed and sworn to before me this 16 th day of February, 2016 TANYA MARIA CARR Karyn B. Kazyaka, Notary Public Macomb County, Michigan My Commission Expires: Acting in Wayne County

10 SERVICE LIST MPSC CASE NO. U ADMINISTRATIVE LAW JUDGE Hon. Mark D. Eyster Administrative Law Judge Michigan Public Service Commission 7109 W. Saginaw Hwy., 3rd Floor Lansing, MI ATTORNEY GENERAL Michael E. Moody Assistant Attorney General ENRA Division G. Mennen Williams Bldg. 6 th Floor P.O. Box Lansing, MI moodym2@michigan.gov SPECIAL ASSISTANT ATTORNEY GENERAL Donald E. Erickson 16 Aviemore Drive Mason, Michigan donaldericksonatty@sbcglobal.net RESIDENTIAL RATEPAYER CONSORTIUM David L. Shaltz Chalgian & Tripp Law Offices PLLC 1019 Trowbridge Road East Lansing, MI dshaltz@sbcglobal.net RETAIL ENERGY SUPPLY ASSOCIATION Jennifer Utter Heston Michael S. Ashton Fraser Trebilcock Davis & Dunlap, PC 124 W. Allegan, Ste Lansing, MI jheston@fraserlawfirm.com mashton@fraserlawfirm.com INTERSTATE GAS SUPPLY, INC. Brandon C. Hubbard Dickinson Wright PLLC 215 S. Washington Square, Suite 200 Lansing, MI bhubbard@dickinsonwright.com MPSC STAFF Spencer A. Sattler Bryan A. Brandenburg 7109 West Saginaw Hwy, 3 rd Fl Lansing, MI sattlers@michigan.gov brandenburgb@michigan.gov ANR PIPELINE COMPANY David R. Hammel Senior Legal Counsel TransCanada 700 Lousiana Street, Suite 700 Houston, TX dave_hammel@transcanada.com CO-COUNSEL FOR ANR Howard Nelson Francesca Ciliberti-Ayres Mike VanNordenm Greenburg Traurig, LLP 2101 L Street N.W., Suite 1000 Washington, D.C nelsonh@gtlaw.com ciliberti-ayresf@gtlaw.com vannordenm@gtlaw.com