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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


  1. Marquette Connector Overview February, 2017

  2. 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

  3. 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

  4. 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

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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. Proposed Marquette Connector Route 12

  13. Existing Corridors 13

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  19. Questions www.marquetteconnectorfacts.com 19

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