Dykema Gossett PLLC Capitol View 201 Townsend Street, Suite 900 Lansing, MI 48933

WWW.DYKEMA.COM

Tel: (517) 374-9100 Fax: (517) 374-9191

Richard J. Aaron

Direct Dial: (517) 374-9198 Direct Fax: (855) 230-2517 Email: RAaron@dykema.com

Cal i forn ia | I l l ino is | Michigan | Minnesota | Texas | Washington , D.C .

March 27, 2020

Lisa Felice Executive Secretary Michigan Public Service Commission PO Box 30221 Lansing, MI 48909

Re: Case No. U-16169 and U-17824 SEMCO Energy Gas Company 2019 Annual report

Dear Ms. Felice:

Attached for electronic filing, is SEMCO Energy Gas Company’s Main Replacement Program (MRP) Planning Report and Performance Report for the year ending 2019 and Proof of Service.

If you have any questions, please contact me.

Sincerely,

DYKEMA GOSSETT PLLC

Richard J. Aaron

rlg Enclosures

109461.000006 4831-2322-9112.1

Requirements for the Main Replacement Program (MRP) Planning Report and Performance Report

1. The following requirements will replace the annual reporting requirements pursuant to paragraph 9, G and Attachment C of the Settlement Agreement approved by the Commission in its January 6, 2011 Order in Case No. U-16169. 2. The MRP Planning Report will be filed in the U-16169 E-docket by March 31st and include the spending detail for the current year. 3. The MRP Performance Report will be filed in the U-16169 E-docket by March 31st each year and include the spending detail for the preceding year. 4. All of the dollars spent on the MRP will be tracked via MRP work orders. 5. Excel files of tables and charts included in the Planning Report and Performance Report will be provided to Staff.

REPORT YEAR -- 2019 MRP Planning Report Requirements 1. Proposed projects including:

a. a project identifier for each job RESPONSE: See Exhibit A b. the project location RESPONSE: See Exhibit A c. the type of pipe to be replaced RESPONSE: See Exhibit A d. the length of pipe to be replaced RESPONSE: See Exhibit A e. the DIMP model risk rank RESPONSE: See Exhibit A f. number of service lines to be renewed or retired, including scattered services RESPONSE: See Exhibit A g. number of meters to be removed or replaced RESPONSE: See Exhibit A h. any miscellaneous infrastructure, if known, to be removed or replaced to support the MRP RESPONSE: It is unknown at this time if any miscellaneous infrastructure will need to be removed or replaced to support the MRP.

i. number of known leaks to be remediated from replaced infrastructure RESPONSE: See Exhibit A j. the projected final cost of each project including, service, meter and/or regulation costs RESPONSE: See Exhibit A

2. Explanation of factors that changes project priority from current DIMP model risk ranking (i.e. load leveling work in districts, external timing constraints, non-ranked risk factors, efficiencies with other projects, etc).

RESPONSE: Project priority may be modified when required to ensure there are adequate resources in each division to complete the project safely and efficiently. Rankings are made per district to support this. Project priority may also be changed if there are factors affecting the project not accounted for in the DIMP model.

MRP Performance Report Requirements 1. Overall Program Information

RESPONSE: SEMCO is currently on track to meet the overall requirements of the MRP program as outlined in Case No. U-17824. SEMCO is required to spend a total of $50.5 million for the period 2016-2020 and replace a total of 203 miles of high risk main through the combined MRP and base mile program.

In 2019 SEMCO replaced 28.49 miles of high risk main and spent $11.8 million under the combined MRP and base mile program. During the 2016-2019 period SEMCO has replaced a combined total of 153.42 miles of high risk main and spent $53.0 million on the MRP and base mile program. SEMCO plans on reaching its five year goal of 203 miles. Since 2011, $113.2 million has been spent to replace a total of 385.58 miles of high risk main.

2. Explanation of projects completed that differ from original plan.

RESPONSE: All projects listed in the original plan were completed with the exception of five projects:

• BC-006-2019 (Carl Ter Replacement) - Public Improvement Projects in the Central district emerged during construction season that diverted crew capacity.

• SE-035-2019 (Pointe Tremble) - Due to the high water level around Clay Township in St. Clair County the project would have required sheeting and dewatering. These items would have added considerable cost and time to the project.

• SD-012-2019 (Prairie Ronde St RR Bore) - The majority of the project was completed in 2017. One remaining portion (replacement segment only) was held due to rail permit delays. The final portion will be completed under SEMCO’s Betterment program.

• SD-032-2019 (Decatur Road 3rd Ave) – Large public improvement projects required by MDOT on US 131 emerged during construction season that diverted crew capacity.

All projects were carried over into the 2020 MRP schedule. Two projects were also added to the program in 2019.

• ND-033-2019 resulted from bare steel pipe that was discovered as having been misidentified as plastic.

• HD-048-2019 was similar size, scope and rank to the original plan and determined to be an area of opportunity.

3. Estimated/ Equivalent resources working on MRP program (based on CY loading factors)

RESPONSE: Company resources working on the MRP jobs closed in 2019 totaled: $1,809,082.65 Contracted resources working on the MRP program closed in 2019 totaled: $4,518,787.33

4. Specific project information for the prior year shall include: a. a project identifier for each job RESPONSE: See Exhibit B b. the project location RESPONSE: See Exhibit B c. the type of pipe replaced RESPONSE: See Exhibit B d. the length of pipe replaced RESPONSE: See Exhibit B e. the DIMP model risk rank RESPONSE: See Exhibit B f. number of service lines renewed or retired, including scattered services RESPONSE: See Exhibit B g. number of meters removed or replaced RESPONSE: See Exhibit B h. any miscellaneous infrastructure removed or replaced to support the MRP RESPONSE: See Exhibit B i. Number of Known leaks remediated from replaced infrastructure RESPONSE: See Exhibit B j. the final cost of each project including, service, meter and/or regulation costs RESPONSE: See Exhibit B

5. Estimated annual O&M savings a. Leak survey (Mains and Services) RESPONSE: SEMCO estimates a savings of $3,795.44 annually.

b. Leak repair (Mains and Services) RESPONSE: SEMCO estimates a savings of $20,869 annually by avoiding costs related to leak repair in future years.

c. Cathodic Protection RESPONSE: SEMCO does not estimate any quantifiable cathodic protection savings due to the MRP work.

d. The Lost and Unaccounted for Gas report in accordance with Federal requirements RESPONSE: -0.203%

6. Sample tests:

a. that MRP costs are not recovered through any other approved tariff RESPONSE: MRP costs incurred during 2019 were recovered with rates approved in Case No. U-17824 and the Company has no other tariff rate that could recover MRP costs. No sample population exists to perform testing upon because the Company’s recent rate order approved in Case No. U-20479, did not take effect until service rendered January 1, 2020 and had no overlap with the rates recovered for the 2019 program year. Additionally, the rate order for Case No. U-20479 incorporated 2020 MRP projected spend into the rate base and ended the MRP surcharges under Case No. U-17824 effective with service rendered January 1, 2020. New MRP surcharges will not begin until January 1, 2021 and will not overlap the 2020 program year. b. that the customer bills include the correct MRP surcharges RESPONSE: Internal audit determined MRP surcharges are appropriately billed with no exceptions noted. c. that MRP revenues are properly recorded RESPONSE: Internal audit determined Rider MRP revenues are appropriately recorded with no exceptions noted. d. that the actual costs associated with the MRP are properly recorded RESPONSE: Internal audit determined the actual costs associated with the Rider MRP are appropriately recorded no exceptions noted.

7. Report Requirements for Non-MRP (Base Miles) Programs a. With regard to the distribution pipe replaced and/or retired outside of the MRP, the Performance Report will contain the following project breakdown by material type of pipe:

i. Project Name RESPONSE: See Exhibit C ii. Location RESPONSE: See Exhibit C iii. Size RESPONSE: See Exhibit C iv. Length RESPONSE: See Exhibit C v. Cost RESPONSE: See Exhibit C

8. Combined MRP and Non-MRP Distribution Program Reporting Requirements a. Total miles replaced broken down by material type RESPONSE: See Exhibit D b. Running year over year total of pipe replaced and pipe remaining. RESPONSE: See Exhibit D c. Split between total miles replaced in MRP and Non-MRP RESPONSE: See Exhibit D d. Cathodically unprotected pipe replaced with similar break down as (a) and (b) above RESPONSE: See Exhibit D

Div Pro Name/Project TitleCategory Active Leaks Total

Meters

CENTRALCarl Terr Replacement 99.97%

53827 Carl Ter 2" Replacement (Freedom Lane) Replace 0 14153828 Carl Ter 2" Retirement (Freedom Lane) Retire 0 0

Avenue A Mobile Home Replacement 99.57%53914 Avenue A Mobile Home Park Replacement Replace 0 13353915 Avenue A Mobile Home Park Retirement Retire 0 0

Irwin Ave - MRP 99.44%58970 Replacement Irwin Ave Replace 0 758941 Irwin Ave MRP-RET Retire 0 0

Oakleaf Lane MRP 99.45%58976 Replacement Oak Leaf Ln Replace 0 1958942 Oakleaf Ln MRP RET Retire 0 0

Mingo / Sydenham / Michigan MRP 99.65%59015 Replacement N Mingo & Michigan Ave Replace 0 2258943 Mingo / Sydenham / Michigan MRP - RET Retire 0 0

S Darlymple / W Center MRP 99.70%59057 S Darlymple / W Center MRP RPL Replace 0 3658945 W Darymple & W Center Retire 0 0

River St MRP 99.84%59003 Replacement River St Replace 0 3758946 Retirement River St MRP Retire 0 0

Thunderbird MRP 99.75%59058 Thunderbird MRP RPL Replace 0 2458997 Thunderbird TRP - MRP Retire 0 0

EASTERN-NorthRavenswood Rd @ NJ, Carolina, Wisconsin, MI Rd 99.81%

58937 Ravenswood @ NJ, Caolina, Wiscons MRP RPL Replace 0 14058936 Ravenswood @ NJ, Carolina Retire 0 0

Wells St / 16th St Area 99.97%58975 Wells St / 16th St Area Replacement For MRP Replace 0 1958934 Wells St / 16th Area Main Retirement Retire 0 0

Washington Blvd / 17th St. Area - Marysville 99.86%58926 Washington Blvd / 17th St Area Replacement - MRP Replace 0 4958925 Washington Blvd. / 17th St. / 18th St Area Retire. Retire

EASTERN-SouthPointe Tremble and Maynard - Main Replacement 100.00%

53890 Pointe Tremble MRP - 2" Main Replacement Replace 0 6953891 Pointe Tremble MRP - 8" Main Replacement Replace 0 6152687 Pointe Tremble MRP - Main Retirement Retire 0 0

BC-012-2020 $35,365

Div Pro No/Project ID

BC-005-2020 $468,688

BC-006-2020 $395,142

BC-013-2020 $78,798

BC-014-2020 $111,038

BC-016-2020 $159,571

BC-017-2020 $81,919

BC-018-2020 $113,005

NE-017-2020 $758,512

NE-018-2020 $88,030

NE-023-2020 $328,772

SE-017-2020 $620,348

Exhibit A

Eckfield MRP - 2in Main Replacement 99.98%58889 Eckfield MRP - 2in Main Replacement Replace 0 1758822 Eckfield MRP - Main Retirement Retire 0 0

Edlane and Bealane MRP - 2in Main Replacement 99.96%58888 Edlane and Bealane MRP - 2in Main Replacement Replace 0 17058823 Edlane and Bealane MRP - Main Retirement Retire 0 0

Algonac MRP - Main Replacement 99.89%58886 Algonac MRP - 6in Main Replacement Replace 0 258887 Algonac MRP - 2in Main Replacement Replace 0 7158824 Algonac MRP - Main Retirement Retire 0 0

Edgewater and Teal MRP - 2in Main Replacement 99.88%58885 Edgewater and Teal MRP - 2in Main Replacement Replace 0 5858825 Edgewater and Teal MRP - Main Retirement Retire 0 0

Haven Ridge MRP - 6in Main Replacement 99.83%58883 Haven Ridge MRP - 6in Main Replacement Replace 0 19758827 Haven Ridge MRP - Main Retirement Retire 0 0

River Rd and Wauketa MRP - Main Replacement 99.85%58973 River Rd and Wauketa MRP - 6in Main Replacement Replace 0 3158974 River Rd and Wauketa MRP - 2in Main Replacement Replace 0 3358972 River Rd and Wauketa MRP - Main Retirement Retire 0

NORTHERNW Ridge St, Bluff St --MQT 99.92%

38729 W Ridge St, Bluff St --MQT Replace 0 12752750 W Ridge St, Bluff St --MQT Retire 0 0

N. State & Central HI, Staint Ignace 99.90%59049 N. State & Central HI, Staint Ignace Replace 0 1658870 N. State & Central HI, Staint Ignace Retire 0 0

SOUTHWESTERNDecatur Rd, 3rd Ave - Cassopolis 99.97%

55028 Decatur Road MRP, Penn Township Replace 0 2255029 Decatur Road MRP Retirement, Penn Township Retire 0 0

Iroquois Blvd - Tamarac - Three Rivers 99.76%55344 Iroquois Blvd Install Replace 0 7152720 Iroquois Blvd Retirement Retire 0 058815 Phase II Tamarac Subdivison 2" Install Replace 0 4258816 Phase II Retirement Tamarac 2" Century Plastic Retire 0 0

White Pines Trailer Park 99.93%58720 White Pines Trailer Park 2" Replacement Replace 0 778723 Retire existing 2" (1973) at White Pines Retire 0 0

Wild St - Niles 99.95%58726 Wild St 2" plastic replacement Replace 0 558727 Retire 2" plastic - Wild St Retire 0 0

Wayne St, S 3rd St - Niles 99.89%

SE-020-2020 $143,971

SE-021-2020 $569,348

SE-022-2020 $623,454

SE-023-2020 $248,588

SE-025-2020 $2,228,961

SE-039-2020 $521,227

ND-015-2020 $483,091

ND-036-2020 $53,757

SD-009-2020 $150,775

SD-011-2020 $652,885

SD-017-2020 $56,199

SD-018-2020 $36,506

SD-019-2020 $59,016

59040 Niles - S 3rd St - Main Replacement Replace 0 859041 Niles - S 3rd St - Main Retirement Retire 0 0

Dunes Rd - Chikamin Twp 99.95%58840 Replace 2" plastic Dunes Rd Replace 0 858841 Dunes Rd 2" plastic retirement Retire 0 0

WESTERN138th Ave MRP 99.99%

55220 138th Ave MRP Replace 0 652722 138th Ave MRP Retire 0 0

Navajo & Iroquois MRP 99.97%58637 Navajo & Iroquois MRP Replace 0 6752724 Navajo & Iroquois MRP Retire 0 0

Maple Beach MRP 99.96%58640 Maple Beach MRP Replace 0 2758641 Maple Beach MRP Retire 0 0

140th & 142nd MRP 99.95%58642 140th & 142nd 2" MRP Replace 0 6858667 Quincy St 4" MRP Replace 0 258643 140th & 142nd MRP Retire 0 0

Eagle Crest MRP 99.94%58644 Eagle Crest MRP Replace 0 4758645 Eagle Crest MRP Retire 0 0

Lake Forest Dr MRP 99.91%58646 Lake Forest Dr MRP Replace 0 1558647 Lake Forest Dr MRP Retire

Scattered Services (Various Districts) Replace

SD-021-2020 $49,240

HD-024-2020 $69,849

HD-028-2020 $234,602

HD-029-2020 $75,000

HD-025-2020 $292,659

HD-026-2020 $110,418

HD-027-2020 $243,377

Tie-Overs

New/Rep Services Size Material Length Total

3 138 2" PL 3,350 $448,792.952" P78PL,ST 3,939 $19,894.88

20 113 2" PL 2,950 $380,122.642",4" PL 3,780 $15,019.14

0 7 2" PL 510 $31,890.582" PL,P78-PL 505 $3,474.68

5 14 2" PL 1,550 $69,828.162" P78-PL 1,523 $8,969.80

0 22 2" PL 1,400 $99,696.582" PL 1,370 $11,340.92

0 30 2" PL 1,600 $142,162.332",8" P78-PL,WWS 2,103 $17,408.73

21 16 2" PL 1,260 $74,362.092" PL 1,257 $7,557.36

0 24 2" PL 911 $100,711.722" PL 1,485 $12,292.89

CENTRAL $1,443,525

0 135 2" PL 9,186 $709,795.672" P78-PL,WWS 5,885 $48,716.28

4 15 2" PL 680 $80,140.212" PL,WWS 688 $7,889.65

0 47 2" PL 4,465 $291,810.092",4",6" P78-PL,BS,WWS,PL 4,465 $36,961.46

EASTERN-North $1,175,313

0 69 2" PL 263 $238,499.1611 50 6",8" Pl 2,085 $339,345.95

1",2",6" DCS,PL,WWS 4,543 $42,502.63

5 12 2" PL 800 $130,604.782" PL,WWS 802 $13,366.38

70 100 2" PL 4,355 $497,563.152" WWS 4,106 $71,784.63

0 2 6" PL 1,009 $92,999.270 71 2" PL 6,520 $436,581.39

2",6" BS,PL,WWS 9,017 $93,873.53

18 40 2" PL 1,512 $219,915.352" WWS 1,512 $28,672.55

77 120 2",6" PL 25,696 $1,870,528.106" BS,WWS 25,494 $358,433.20

0 29 6" PL 4,535 $320,701.730 25 2" PL 2,128 $146,504.09

1 1/4",2",6" BS,PL,WWS 6,526 $54,020.86EASTERN-South $4,955,897

41 86 2" PL 6,058 $457,209.302" CE 5,149 $25,881.76

9 7 2" PL 775 $47,341.832" CE 775 $6,415.48

NORTHERN $536,848

2 20 2" PL 3,630 $133,156.132" PL 3,931 $17,619.25

8 63 2" PL 5,600 $351,392.652" P78-PL 5,758 $52,892.13

13 29 2" PL 4,200 $219,620.902" PL 4,682 $28,979.50

1 6 2" PL 500 $48,121.762" PL 424 $8,076.75

1 4 2" PL 500 $31,558.682" PL 481 $4,947.25

4 4 6" PL 680 $45,786.126" PL 680 $13,230.02

3 5 2" PL 560 $37,583.852" PL 531 $11,655.88

SOUTHWESTERN $1,004,621

1 5 2" PL 2,498 $54,922.862" P78-PL 2,481 $14,926.55

33 34 2" PL 4,844 $242,854.930 2" PL,P78-PL 4,819 $49,804.41

11 16 2" PL 1,483 $98,034.260 1",2" PL,P78-PL 1,496 $12,383.95

48 20 2" PL 4,366 $209,757.002 0 4" PL 767 $33,620.08

0 2",4" PL,P78-PL,WWS 5,099 $45,854.92

25 22 2" PL 3,927 $196,064.530 2" P78-PL,WWS 3,999 $38,537.15

5 10 2" PL 1,452 $73,161.022" PL, P78-PL,WWS 1,489 $1,838.53

WESTERN $1,071,760

200 $571,433.81

Replace 21.64 114,250 $9,076,613Retire 22.10 116,688 $1,113,438TOTAL $10,190,050.97

4a 4e 4g 4h 4i 4j

RPLMT JO Division Job Name Size Type GIS Length BS WWS Vint PL PL TotalService

ReplService

Tie-OversServiceRtmnts

Infra-structureRtmt Cost

219276714105 Eastern-N D-RP 2PLMN ROBINSON / N 9TH S 2" PL 576 0 517 0 0 517 99.82% 6 5 6 6 0 0 106,034.86219276721805 Eastern-N D-RP 2PLMN DECKERVILLE ESTATES 2" PL 2,367 0 0 2,708 0 2,708 99.97% 44 0 44 44 0 0 233,763.00219276722005 Eastern-S D-RP 2PLMN SPRINGBROOK ESTATES 2" PL 7,108 0 0 8,513 15 8,528 99.99% 193 5 193 193 0 0 845,911.74219276722605 Eastern-S D-RP 2PLMN RICHMOND PLACE 2" PL 2,893 0 0 4,407 0 4,407 100.00% 116 0 116 116 0 0 471,405.04219276723305 Eastern-S D-RP 2PLMN AMERICANA TRLR 2" PL 17,423 0 0 16,945 931 17,876 99.94% 290 0 537 290 0 0 1,611,517.86219576726107 Western D-RP 4PLMN 147TH AND 52ND ST 4" PL 1,040 0 0 1,021 21 1,042 97.02% 6 0 6 6 0 0 62,948.24219276726405 Eastern-S D-RP 2PLMN FORTON MRP 2" PL 4,990 0 4,490 274 27 4,791 99.95% 69 54 69 69 0 0 534,788.32219276727205 Eastern-N D-RP 2PLMN CUTTLE RD 2" PL 2,054 0 481 1,933 100 2,514 100.00% 57 0 59 57 0 0 259,176.84219576729705 Western D-RP 2PLMN LAKERIDGE DR 2" PL 3,846 0 4 3,941 5 3,950 99.98% 36 12 36 36 0 0 236,280.13219276733705 Eastern-S D-RP 2PLMN SHORE NEW PLACE 2" PL 1,234 0 0 1,145 16 1,161 99.82% 26 6 26 26 0 0 137,263.36219376734005 Northern D-RP 2PLMN BALDWIN AVE & LAKE 2" PL 1,024 0 0 1,094 0 1,094 99.92% 22 10 22 22 0 0 102,201.50219276735905 Eastern-S D-RP 2PLMN ST JOHN DR 2" PL 4,707 0 4,554 0 45 4,599 99.86% 59 87 59 59 0 0 425,385.62219276736405 Eastern-S D-RP 2PLMN MARKET, RIVERVIEW 2" PL 1,049 1,034 0 0 0 1,034 99.84% 17 11 17 17 0 0 116,003.58219476740305 Southwest D-RP 2PLMN UNION & N LINCOLN, 2" PL 1,341 0 0 1,344 0 1,344 99.93% 34 0 34 34 0 0 147,227.13219476740407 Southwest D-RP 4PLMN N LINCOLN & UNION, 4" PL 443 0 0 439 0 439 99.93% 4 0 4 4 0 0 32,050.09219576742205 Western D-RP 2PLMN ELDERWOOD, DURWOOD 2" PL 3,347 0 0 3,272 78 3,350 97.78% 38 7 38 38 0 0 216,481.91219576742307 Western D-RP 4PLMN RILEY & ELDERWOOD 4" PL 2,248 0 0 2,135 104 2,239 97.78% 17 1 17 17 0 0 148,909.23219276743605 Eastern-S D-RP 2PLMN VILLAGE DU LAC 2" PL 724 0 0 747 0 747 99.88% 26 0 26 26 0 0 113,953.61219276744005 Eastern-N D-RP 2PLMN CASS B/W 6TH & 10TH 2" PL 1,345 339 76 885 42 1,342 99.85% 18 5 18 18 0 0 122,300.81219276744205 Eastern D-RP 2PLMN STRAWBERRY & 2" PL 1,983 0 1,940 0 0 1,940 99.87% 8 16 8 8 0 0 129,172.25219376744905 Northern D-RP 2PLMN 8TH, HECLA ST 2" PL 288 222 0 0 0 222 99.55% 3 4 3 3 0 0 19,052.20219276747105 Eastern-N D-RP 2PLMN VILLAGE GREEN 2" PL 1,406 0 681 534 136 1,351 99.84% 12 0 12 12 0 0 85,867.88219276747505 Eastern-S D-RP 1PLMN MARGO MANOR APTS 1" PL 1,199 0 0 1,004 0 1,004 99.93% 28 1 28 28 0 0 119,877.27219376748205 Northern D-RP 2PLMN TURNBULL & CAMPBELL 2" PL 912 99.91% 13 1 13 13 0 0 54,035.07219376748307 Northern D-RP 4PLMN CHARLES & VICTORY 4" PL 8,168 0 0 10,477 216 10,693 99.91% 37 12 39 37 0 0 408,487.19219376748408 Northern D-RP 6PLMN CAMPBELL AVE 6" PL 1,342 99.91% 10 0 10 10 0 0 97,769.95219276748805 Eastern-N D-RP 2PLMN WATERLOO, ROBINSON 2" PL 1,057 0 953 0 41 994 99.25% 12 5 13 12 0 0 95,462.12219276752405 Eastern-N D-RP 2PLMN NELSON ST, 14TH ST 2" PL 1,467 704 898 0 10 1,612 99.83% 21 5 21 21 0 0 174,432.97219276755008 Eastern-N D-RP 2&6PLMN SMITHS CREEK B/W 2",6" PL 43 / 5535 0 5,512 0 36 5,548 99.80% 3 17 4 3 0 0 407,950.75219176757308 Central D-RP 2&6PLMN CLARE, E MICHIGAN, 2",6" PL 5 / 1495 1,509 0 0 1,691 3,200 98.68% 0 3 0 0 0 0 90,528.06219276762505 Eastern-N D-RP 2PLMN ELMWOOD / WOODSTOCK 2" PL 4,292 324 2,893 992 33 4,242 99.81% 42 33 42 42 0 0 337,077.60218276781405 Eastern-S D-RP 2PLMN SILVER POINTE 2" PL 3,795 0 3,201 541 21 3,763 99.97% 42 24 42 42 0 0 429,952.30218576790705 Western D-RP 2PLMN EVERGREEN MRP PHS 3 2" PL 2,086 0 46 1,657 297 2,000 99.93% 38 0 38 38 0 0 171,805.16218576791505 Western D-RP 2PLMN EVERGREEN MRP PHS 1 2" PL 3,045 0 34 2,886 167 3,087 99.93% 44 2 44 44 0 0 210,560.09

Various Scattered Services 182 186 182 521,391.79

TOTAL 97,877 4,132 26,280 68,894 4,032 103,338 1,573 326 1,644 1,573 0 0 $9,277,025.52

Page 1 of 1

TotalMeters

Repl

Active Leaks

Repaired

Overall Final Cost

BS - Bare Steel WWS - Welded and Wrapped Steel Vint PL - Pre 1978 Plastic Pipe PL - Post 1977 Plastic Pipe

Exhibit B - 2019 Main Replacement Program Statusas of March 31, 2019

4b 4c & 4d 4fMain Footage Retired

Company Wide DIMP

Ranking

Services

Exhibit C - Non-MRP Retired Segment Summary (Base Miles)

3/25/2020 Page 8 of 9

District Div Pro No Job Order # Job NamePipeType

Diameter(inches)

Length(miles)

Cost

Central BC-019-2019 219176430805 Main St Uprate - Hoover RD, D Dr, Christian Bare Steel 2 0.321 $70,097WWS 2 0.009Plastic 2 0.006

BC-024-2019 219176452005 Replacement S. Banfield Rd Vintage PL 4 0.001 $18,509NE-008-2019 219276426607 Fort St / McMorran Blvd Area Main Replacement (Non-PIP) Bare Steel 4 0.124 $140,722

WWS 4 0.019Plastic 2 0.028Plastic 4 0.003

NE-031-2019 219276470905 Murphy Dr. / Gratioit Ave. Area Main Replacement Bare Steel 2 0.107 $40,983NE-065-2019 219276458108 Clinton Ave & Carney Rd. Retirement & DRS #2045 Retirement Bare Steel 2 0.091 $1,756NE-084-2019 No Replacement 5194 - 5206 Main Retirement - Lakeshore Rd. Vintage PL 2 0.020 $2,482Routine Routine Work Vintage PL 2 0.001 $226SE-022-2019 219276422305 Kenyon Rd. 2" PIP Replacement WWS 2 0.133 $93,956

Plastic 2 0.002SE-034-2019 219276438405 Pittsburgh St - Main Replacment Bare Steel 2 0.243 $266,126

Vintage PL 2 0.005Plastic 2 0.063Plastic 2 0.453

SE-034-2019 219276438708 Pittsburgh St - Main Replacment Bare Steel 2 0.014 $163,304Bare Steel 6 0.052WWS 2 0.133WWS 6 0.164Plastic 2 0.002

SE-031-2019 219276441705 Bayview Dr and Hooker Rd - 2" Main Replacement Vintage PL 2 0.659 $272,456Plastic 2 0.214

SE-040-2019 219276431005 Church St. Area Main Replacement Bare Steel 2 0.796 $264,632Plastic 2 0.027WWS 2 0.147

SE-057-2019 219276450805 River Rd (4135-4257) - 2in Main Replacement Bare Steel 2 0.228 $31,730SE-066-2019 219276450305 Banks Dr. - 2" Main Replacement WWS 2 0.062 $53,411Routine Routine Work Bare Steel 6 0.001

Northern ND-007-2019 219376466405 Hecla St Calumet Vintage PL 2 0.142 $53,319WWS 2 0.024Plastic 4 0.002

ND-016-2019 218376461307 South State St., Saint Ignace -- Carry Over Vintage PL 0.5 0.072 $322,753218376461205 Vintage PL 1 0.362

Vintage PL 2 0.335Vintage PL 3 0.377

ND-017-2020 219376445105 Massie Rd, Lake Shore Chassell -- Copper Country Flood-- Vintage PL 2 0.524 $130,265Plastic 2 0.020

ND-020-2019 219376445405 Kona Lane, Ely TWP Vintage PL 1 0.061 $115,348ND-020-2019 219376445507 Vintage PL 2 0.100

Vintage PL 4 0.025Plastic 2 0.005Plastic 4 0.026WWS 4 0.010

ND-027-2019 219376439405 Birch Street, Hancock MI Vintage PL 2 0.063 $16,998ND-064-2019 219276449105 US-41 Marquette Mall Marquette City Vintage PL 2 0.092 $53,217Routine 224074820 Routine Work Vintage PL 2 0.001 $181SD-038-2019 219476055207 Michiana Shores - New Buffalo - Pressure Imp Vintage PL 2 0.148 $37,185

219476455807 Vintage PL 4 0.121SD-021-2019 218476480805 South Jane Street, Centerville Vintage PL 2 0.013 $13,194

WWS 2 0.015SD-027-2019 219476425107 Bell Road - Niles Vintage PL 2 0.062 $26,485

Plastic 1 0.001Plastic 2 0.001Plastic 4 0.016

SD-037-2019 219476438207 S Kalamazoo St Bridge - White Pigeon Vintage PL 2 0.036 $3,462HD-022-2019 219576442505 Holland Heights PIP -2019 Vintage PL 2 0.204 $25,619HD-051-2019 219576443805 Ransom St & Estate Dr Vintage PL 2 1.301 $335,312

Plastic 2 0.331HD-056-2019 219576447305 Maple Acres Ln Vintage PL 2 0.238 $19,548Routine 223074820 Routine Work Vintage PL 4 0.001 $136

Vintage PL 2 0.003 $770Total 8.858 2,574,185$

Eastern-N

Eastern-S

Southwest

Western

8. Combined MRP and Non-MRP Distribution Program Reporting Requirementsa. Total miles RETIRED broken down by material type

Pipe Material MilesBare Steel 2.75Vint PL 18.09Plastic 1.96WWS 5.69

Total 28.49

b. Running year over year total of pipe replaced and pipe remaining.2011 2012 2013 2014 2015 2016 2017 2018 2019 Total

Pipe Retired 52.57 50.52 47.39 38.55 43.12 47.54 41.71 35.68 28.49 357.09Pipe Remaining 639.50 565.40 410.70 371.70 339.30 305.81 320.90 295.27 255.15 N/A

c. Split between total miles REPLACED in MRP and Non-MRP2011 2012 2013 2014 2015 2016 2017 2018 2019 Total

MRP Retired 16.64 21.11 29.07 30.06 33.76 32.24 28.07 23.55 19.56 234.07Non MRP (Base Miles) 35.93 29.41 18.32 8.49 9.36 15.30 13.63 12.13 8.93 151.50Grand Total 52.57 50.52 47.39 38.55 43.12 47.54 41.71 35.68 28.49 385.57

Total Target DifferenceMRP Retired 234.07 208.00 +26.07Non MRP (Base Miles) 151.50 120.20 +31.3Grand Total 385.57 328.20 +57.37

d. Cathodically unprotected pipe replaced with similar break down as (a) and (b) aboved-a. Total miles RETIRED broken down by material type

Pipe Material MilesBare Steel 2.75WWS 5.69

Total 8.44

d-b. Running year over year total of pipe replaced and pipe remaining.2011 2012 2013 2014 2015 2016 2017 2018 2019 Total

Pipe Retired 40.27 35.78 33.21 24.74 27.73 36.80 32.22 14.13 8.44 244.88Pipe Remaining 331.10 262.80 118.90 87.80 69.80 51.50 70.00 64.40 42.34 N/A

2019 Miles Only

2019 Miles Only

Exhibit D

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8933

STATE O F MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

In the matter of the application of ) SEMCO ENERGY GAS COMPANY ) to combine its MPSC Division and Battle Creek ) Case No. U-16169 Division rates and for authority to redesign and ) increase its rates, on a combined basis, for the sale ) and transportation of natural gas and for other relief. )

)

CERTIFICATE OF SERVICE

Karlene K. Zale, an employee of Dykema Gossett PLLC, being first duly sworn, deposes

and says that on this 27th day of March, 2020, she served a copy of SEMCO Energy Gas

Company’s Main Replacement Program (MRP) Planning Report and Performance Report for the

year ending 2019 upon persons listed in the attached Service List by electronic mail.

I declare that the statements above are true to the best of my information, knowledge, and

belief.

Karlene K. Zale

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SERVICE LIST

Heather Durian Assistant Attorney General Michigan Public Service Commission 7109 West Saginaw Highway Lansing MI 48917 durianh@michigan.gov

Michael J. Brown Carlin Edwards Brown PLLC 6017 W. St. Joseph Highway, Suite 202 Lansing MI 48917 MBrown@cebhlaw.com

Michael E. Moody, Assistant Attorney General Environment, Natural Resources & Agriculture Division 525 W. Ottawa Street P.O. Box 30755 Lansing MI 48909 moodym2@michigan.gov

Tim Lundgren Varnum LLP 201 N. Washington Sq., Ste. 810 Lansing MI 48933 tjlundgren@varnumlaw.com

John R. Liskey John R. Liskey Attorney At Law, PLLC 921 N. Washington Lansing MI 48906 john@liskeypllc.com

Eileen W. Wicklund City of Battle Creek City Attorney's Office 10 N. Division Street Battle Creek MI 49014 ewwicklund@ci.battle-creek.mi.us

The Honorable Mark E. Cummins Administrative Law Judge Michigan Public Service Commission PO Box 30221 Lansing MI 48909-7721 cumminsm1@michigan.gov

109461.000006 4838-0905-7376.3