Marquette Connector Overview February, 2017 SEMCO Energy Gas Com - PowerPoint PPT Presentation

Marquette Connector Overview February, 2017

SEMCO Energy Gas Com pany • Natural gas utility serving approximately 300,000 customers throughout Michigan • 150 miles of transmission line • 6,000 miles of distribution main 2

The Challenge • SEMCO’s western Upper Peninsula service area, which includes the U.P.’s largest city, is exclusively served by one pipeline.  Pipeline is operated by Northern Natural Gas (NNG)  Located at the very end of a 2,000+ mile pipeline stretching all the way from Texas  Built in the 1960s • A single failure could result in a long-lasting and potentially dangerous outage for 34,800 customers. • Additionally, the pipeline is at capacity and cannot meet the present energy demand of the region, let alone accommodate future growth. 3

The Solution: Marquette Connector • 42-mile pipeline linking the existing NNG pipeline with the Great Lakes Gas Transmission system also running through the U.P.  Provides much needed additional source of natural gas to reliably meet the area’s energy demands  Expands the area’s tax base  Provides the increased capacity the region needs to grow • Total Cost: Approximately $135-$140 Million 4

Marquette Connector Pipeline Northern Natural Gas SEMCO Proposed Pipeline Great Lakes Pipelines SEMCO Dist. Mains Northern Natural Gas TransCanada’s Great Lakes Pipelines 5

MCP Benefits Greatly enhances the reliability and security of the natural gas delivery system in the U.P. • Expands the tax base  More money for Marquette County to invest in roads, schools, public safety and other local needs • Accommodates future growth and economic development  Energy stability = economic stability  An attractive selling point for business leaders and area investors  Provides the added capacity the region needs to grow 6

Regulatory Hurdles • SEMCO filed for regulatory approval (Act 9) on December 15, 2016  Determination on whether the pipeline is prudent and necessary  Landowners along the route will be notified  9 to 12 month process for approval • Cost recovery will be through SEMCO’s distribution rates  Additional $ 3.99 per month for residential customers  With the increase, SEMCO’s rate for natural gas would still be less than other providers 7

Current Status • Feasibility report completed in 2014. • Environmental Impact Report for selected route is completed. • Currently completing centerline survey for the pipeline alignment. • Currently completing wetland delineation for permitting. • Pipeline will cross about 220 parcels with about 122 landowners. 8

General Environm ental Marquette Connector will have very little impact on the environment • Some brush and trees will be cleared to accommodate construction  Clearing will be coordinated around nesting of bats • No permanently filled wetlands  Directional boring will be used to minimize the impact on waterways and wetlands • Environmental inspections will take place throughout construction to ensure good environmental work practice and compliance with all permitting. 9

Environm ental Details 20” Pipeline  86% of pipeline follows existing electrical or pipeline corridors  Land use is rural forest, low density residential, mostly flat  22 major and 55 minor stream crossings  28% of line is in wetland area 10

Environm ental Details 10” Pipeline  68% of the pipeline follows existing electrical, pipeline and road ROW  Land use is rural forest, low density residential, mostly flat  5 major and 10 minor stream crossings  13% of line is in wetland area 11

Proposed Marquette Connector Route 12

Existing Corridors 13

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Questions www.marquetteconnectorfacts.com 19