Director of Customer Distribution Deliverability & Planning AGA Distribution Best Practices Program Valve Inspection and Maintenance Potential Roundtable Executive Presentation Mike Romein Director of Customer Distribution Deliverability & Planning 734-513-6276 michael.romein@cmsenergy.com

Company Background Metrics Number of Customers Miles of Main ~ 1.7 million Miles of Main ~ 26,000 Number of Services ~ 1.5 million Number of Employees ~ 2350

Challenges Compliance Safety Budget Productivity Company commitment to be 100% Compliant Required documentation for audits, incidents, etc. Safety Employee safety in the field Public safety Budget Desire to reduce O&M Schedule management Productivity Reduce amount of time/inspection Reduce amount of maintenance required Schedule management – more oversight of where and when surveyors are going in the field

Unique/Beneficial Processes Identification of Required Valves Valves Required by Code Retire other valves vs. inspect and maintain Other methods to shut off gas squeezing Inspection Frequency Yearly Inspection Turning valves regularly Employee Skilling Vendor Training Ride Along with Senior Employees Service location – picture of the service comes up with each record. Before, required surveyor to find on paper, or follow alternate process, if they had no service location record. When the service record is not available, our standards require a more complete survey of the yard in order to ensure the entire service has been covered. This results in additional time for the surveyor. Also makes it easy to resolve location questions. Electronic Documentation – Surveyors don’t need to carry forms, track paper, return to truck, etc. All required information is on the device. In addition, when a leak is found, a few clicks are all that is necessary. The old process required much more time and effort on the surveyors part, and was less reliable regarding the ability to track and measure. Safety – audible alert, visual alert, and also the ability to look at the day’s workload and determine where the threats/dogs/other hazards may be located.

Unique/Beneficial Processes Capital Spending Replacement of Valves Recurring problems O&M vs. Capital Productivity Hydraulic Greaser Schedule Late Spring / Early Summer RegCon Handheld Documentation of Data Issue Reporting Service location – picture of the service comes up with each record. Before, required surveyor to find on paper, or follow alternate process, if they had no service location record. When the service record is not available, our standards require a more complete survey of the yard in order to ensure the entire service has been covered. This results in additional time for the surveyor. Also makes it easy to resolve location questions. Electronic Documentation – Surveyors don’t need to carry forms, track paper, return to truck, etc. All required information is on the device. In addition, when a leak is found, a few clicks are all that is necessary. The old process required much more time and effort on the surveyors part, and was less reliable regarding the ability to track and measure. Safety – audible alert, visual alert, and also the ability to look at the day’s workload and determine where the threats/dogs/other hazards may be located.

Unique/Beneficial Processes MPSC Agreement Valve Maintenance/Repair Long lead times Alternate plan filed Synthetic Grease Mobilith Shc 220 Buried valves Allows for optimum operation Records Accuracy Reviewed Locally Record updates/changes Service location – picture of the service comes up with each record. Before, required surveyor to find on paper, or follow alternate process, if they had no service location record. When the service record is not available, our standards require a more complete survey of the yard in order to ensure the entire service has been covered. This results in additional time for the surveyor. Also makes it easy to resolve location questions. Electronic Documentation – Surveyors don’t need to carry forms, track paper, return to truck, etc. All required information is on the device. In addition, when a leak is found, a few clicks are all that is necessary. The old process required much more time and effort on the surveyors part, and was less reliable regarding the ability to track and measure. Safety – audible alert, visual alert, and also the ability to look at the day’s workload and determine where the threats/dogs/other hazards may be located.

Highlights that would be included in Roundtable Presentation RegCon Handheld Current usage and operation Future plans – new functionality MPSC Agreement Additional discussion on process and approvals when valve replacement is necessary Productivity / Safety Enhancements Hydraulic Greaser Ergonomic Tool discussion Process Management / Oversight Local Process Owner / Regulation Field Leader System Process Owner System Regulation Notes & Processes Two waivers that assist – inside meter leak survey and copper yard portion 5 year rather than 3

Conclusion Valve Maintenance & Inspection Success Over Time RegCon Handheld Device Productivity of Employees Capital vs. O&M Decisions Unique Processes / Program Decisions Records Quality Success Over Time Valve Replacements Employee Training Use of Equipment Vision to the Future Technology Upgrades / GIS In 2010, we did approximate 380,000 services with only 1 past due leak survey.

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