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219971156.2 45617/186747 Clark Hill PLC 151 S. Old Woodward Avenue Suite 200 Birmingham, MI 48009 Douglas R. Kelly T 248.642.9692 T 248.988.5890 F 248.642.2174 F 248.988.2337 Email: [email protected] clarkhill.com July 25, 2018 VIA ELECTRONIC CASE FILING Ms. Kavita Kale Executive Secretary Michigan Public Service Commission 7109 W. Saginaw Highway Lansing, Michigan 48917 Re: MPSC Case No. U-17953: In the Matter of the Complaint of Midland Cogeneration Venture Limited Partnership Against Consumers Energy Company Dear Ms. Kale: Enclosed for filing in the above-referenced case are Midland Cogeneration Venture Limited Partnership’s Reply to Consumers Energy Company’s Reply to Midland Cogeneration Venture Limited Partnership’s Supplement to Second Notice of Inspection as well as a Proof of Service. Very truly yours, CLARK HILL PLC Douglas R. Kelly DRK/lllm cc w/encl.: Hon. Sharon L. Feldman, ALJ Parties of Record

Clark Hill PLC Suite 200 Birmingham, MI 48009

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Page 1: Clark Hill PLC Suite 200 Birmingham, MI 48009

219971156.2 45617/186747

Clark Hill PLC

151 S. Old Woodward Avenue

Suite 200

Birmingham, MI 48009

Douglas R. Kelly T 248.642.9692

T 248.988.5890 F 248.642.2174

F 248.988.2337

Email: [email protected] clarkhill.com

July 25, 2018

VIA ELECTRONIC CASE FILINGMs. Kavita KaleExecutive SecretaryMichigan Public Service Commission7109 W. Saginaw HighwayLansing, Michigan 48917

Re: MPSC Case No. U-17953:In the Matter of the Complaint of Midland Cogeneration Venture LimitedPartnership Against Consumers Energy Company

Dear Ms. Kale:

Enclosed for filing in the above-referenced case are Midland Cogeneration VentureLimited Partnership’s Reply to Consumers Energy Company’s Reply to Midland CogenerationVenture Limited Partnership’s Supplement to Second Notice of Inspection as well as a Proofof Service.

Very truly yours,

CLARK HILL PLC

Douglas R. Kelly

DRK/lllm

cc w/encl.: Hon. Sharon L. Feldman, ALJParties of Record

Page 2: Clark Hill PLC Suite 200 Birmingham, MI 48009

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219971156.2 45617/186747

STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

* * * * *

In the matter of the Complaint of MIDLANDCOGENERATION VENTURE LIMITEDPARTNERSHIP against CONSUMERSENERGY COMPANY

)))))

Case No. U-17953Sharon L. Feldman, ALJ

MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP’SREPLY TO CONSUMER ENERGY COMPANY’S RESPONSE TO

MIDLAND COGENERATION VENTURE LIMITED PARTNERNSHIP’SSUPPLEMENT TO SECOND NOTICE OF INSPECTION

Midland Cogeneration Venture Limited Partnership (“MCV”) replies to Consumer

Energy’s Response to MCV’s Supplement to Second Notice of Inspection (“Response”) and

addresses all of the concerns and outstanding issues identified by Consumers Energy as follows:

Part I Onsite Testing (Field Examination)

On-Site Testing Team: Consumers Energy required a copy of the full Curriculum Vitae

(“CV”) or Resume of each of the technical team members which MCV’s expert will participate

in any on-site testing. Those CVs and/or resumes and biographies are attached as Exhibit A.

I. Close Interval Survey.

In its Response, Consumers raises two concerns. First, Consumers requests operator

qualifications for the on-site testing team related to safety concerns. That information has been

provided in Exhibit A. Moreover, cathodic protection rectifier or other impressed current power

source must be inspected at least six times each calendar year to ensure that it is operating

properly. In addition, CIS is a non-destructive test and does not impose any risk to the operation

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219971156.2 45617/186747

of the pipeline. Second, Consumers raises a concern for maintaining “ideal” right-of-way

conditions. Given that the parties will be selecting the areas for the testing, this concern can be

adequately addressed.

II. Soil Resistivity and Barne’s Layer Testing and Analysis.

In its Response, Consumers requested operator qualifications and testing under

certain conditions. MCV operator qualifications have been provided to Consumers Energy

(see Exhibit A). In addition, MCV accepts conditions as requested and identified on page 3

of the Response.

III. Soil Sampling And Field Testing Corrosivity.

Consumers identified testing under certain conditions. MCV accepts the conditions

as requested and identified on page 3 of the Response.

IV. Pipeline Coating Evaluation in Digs Selected for Disbondment and CP Shielding.

Consumers raised four concerns. First, Consumers raised the concern of operator

qualifications, which has been addressed and supplied by MCV (see Exhibit A). Second,

Consumers raises concerns about excavations on a live transmission pipeline. However,

qualified operators excavate on live transmission pipelines on a regular basis, including

Consumer’s employees and contractors. Accordingly, given the qualifications of MCV’s

experts, this concern has been addressed. Third, Consumers was unclear as to the extent or

location of CIS that will be performed. To be clear, there will only be three areas of the pipe

selected for CIS. Fourth, Consumers is concerned regarding how the coating will be repaired

after inspection. However, this is a non-destructive test so that coating repair is out of the scope

of this inspection and/or will not be required. Furthermore, for clarity, there is no planned

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cutting of samples from the pipeline. Accordingly, all of Consumers concerns are addressed and

resolved.

V. Further Response.

Consumers seeks an indemnification from MCV and its expert and the technical team

conducting the inspection. However, given that this is a non-destructive on-site inspection and

given that the law would protect Consumers and its employees from any negligence by MCV or

its experts or the technical team, there is no need for indemnification particularly to the extent

that Consumers is responsible for any damage to equipment, the pipeline or its operation.

Part II Laboratory Testing Protocol

Any concerns related to qualifications has been addressed. See Exhibit A. To avoid bias, the

laboratory testing of collected samples should be performed at a third party lab acceptable to all

parties involved with Matergenics personnel oversight. It is not acceptable to have Consumers

perform the testing.

I. Metallurgical Failure Evaluation

Consumers requests as a condition of evaluation that either its personnel perform the

testing or that the testing is sent to a lab that it uses. However, to avoid bias, the laboratory

testing of collected samples should be performed at a third party lab acceptable to all parties

involved with Matergenics personnel oversight.

II. Soil Corrosivity Determination

The concerns raised by Consumers are addressed above.

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In conclusion, MCV requests that the parties take the next action steps and (i) schedule a

conference call with experts involved to discuss the inspection and (ii) schedule the second

inspection for late August or early September 2018.

Respectfully submitted,

CLARK HILL PLC

By: ________________________________Douglas R. Kelly (P49856)Linda M. Watson (P45320)Jordan S. Bolton (P66309)Attorneys for Midland CogenerationVenture Limited Partnership151 S. Old Woodward, Suite 200Birmingham, MI 48009

Dated: July 25, 2018 (248) 988-5890

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EXHIBIT A

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219971156.2 45617/186747

STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

* * * * *

n the matter of the Complaint of MIDLANDCOGENERATION VENTURE LIMITEDPARTNERSHIP against CONSUMERSENERGY COMPANY.

)))))

Case No. U-17953Sharon L. Feldman, ALJ

PROOF OF SERVICE

STATE OF MICHIGAN )) ss

COUNTY OF OAKLAND )

Douglas R. Kelly, being first duly sworn, deposes and says that on July 25, 2018, he did

cause to be served Midland Cogeneration Venture Limited Partnership’s Reply to Consumers

Energy Company’s Response to Midland Cogeneration Venture Limited Partnership’s

Supplement to Second Notice of Inspection and this Proof of Service, in the above docket, via

electronic mail, on the persons identified on the attached service list.

___________________________________Douglas R. Kelly

Subscribed and sworn to before methis 19th day of July, 2018.

______________________________________Linda L. McCauley, Notary PublicOakland County, MIMy Commission expires: October 18, 2019Acting in Oakland County

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SERVICE LISTMPSC Case No. U-17953

Administrative Law JudgeSharon L. Feldman, ALJAdministrative Law Judges Division7109 West Saginaw HighwayP. O. Box 30221Lansing, MI 48909Email: [email protected]

Counsel for MPSC StaffAmit T. Singh, Esq.Assistant Attorney GeneralPublic Service DivisionMichigan Public Service Commission7109 W Saginaw HighwayLansing, MI 48917Email: [email protected]

Counsel for Midland Cogeneration VentureLimited PartnershipDouglas R. KellyLinda M. WatsonJordan S. BoltonLauren K. DutcherClark Hill PLC151 S. Old Woodward Ave., Suite 200Birmingham, MI 48009(248) 988-5890Email: [email protected]

[email protected]@[email protected]

Gordon A. CoffeeWinston & Strawn LLP1700 K Street, NWWashington, DC 20006Email: [email protected]

Charles E. Dunn (P54791)100 E. Progress PlaceMidland, MI 48640Email: [email protected]

Counsel for Consumers Energy CompanyH. Richard Chambers, Esq.Theresa A. G. StaleyConsumers Energy CompanyOne Energy PlazaJackson, MI 49201Email: [email protected]

[email protected]@cmsenergy.com