Consumers Energy Investing Nearly $225 Million to Enhance Safety, Reliability of Natural Gas System

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Apr 25, 2016, 06:00 ET

JACKSON, Mich., April 25, 2016 /PRNewswire/ -- Maintaining a strong focus on safety and reliability, Consumers Energy will spend nearly $225 million this year to upgrade its natural gas system throughout Lower Michigan.

"At Consumers Energy we know that safe, reliable delivery of natural gas is a top priority to our customers and our company. That is why we are committed to an ongoing program that will strengthen our natural gas system to benefit the over 1.7 million homes and businesses we serve throughout Lower Michigan," said Charles Crews, vice president of gas operations for Consumers Energy.

This year's commitment includes infrastructure replacement projects across the state, upgrades to compressor and pressure regulation facilities, and upgrades to accommodate new business and residential customer growth. "We are working to increase safety and reliability from the time gas is received into our pipelines until it is delivered to customers," Crews said.

Infrastructure Enhancement and Replacement

A total of $75 million will be spent to complete 60 improvement projects and replace an additional 86 miles of pipe with plastic and steel, using nearly 500 dedicated Consumers Energy employees to perform this work. Projects include:

27 projects in Oakland, Wayne and Macomb counties
11 projects in Ingham, Jackson and Lenawee counties
11 projects in Barry, Eaton, Kalamazoo and Van Buren counties
Six projects in Genesee, Lapeer and Shiawassee counties
Three projects in Bay and Saginaw counties
Two projects in Gratiot and Montcalm counties

Another major project being completed in 2016-17 is replacement of 3.5 miles of a pipeline serving the greater Lansing area with new steel main to improve gas deliverability and reliability.

Growing Economy

As the economy in Michigan continues to expand, Consumers Energy is making $31 million in necessary infrastructure expansion and upgrades to deliver safe, reliable gas service to over 10,000 expected new business customers.

An additional $35 million will be invested to add 146 miles of new gas distribution main in areas currently without natural gas, supporting over 2,000 new residential customers.

Consumers Energy will invest $17 million to augment its pipeline system, which includes a new $9 million natural gas compressor which is being built to increase reliability to customers in Huron and Tuscola counties. Natural gas compressors pressurize gas so it can be moved through pipelines. The compressor will be operational by September.

Civic Improvement Projects

Consumers Energy will spend $35 million in 2016 to replace gas infrastructure in conjunction with state, county and municipal roadway and civic improvement projects, including replacement of about 1,000 gas service lines leading to homes or businesses.

Pressure Regulation Facilities

To help ensure continued safe, reliable delivery of natural gas into and through Consumers Energy's pipeline distribution system, $30 million will be invested in regulation facilities across the state, including rebuilding city gates in Laingsburg and Plymouth, as well as installing new equipment designed to enhance operations.

Consumers Energy, Michigan's largest utility, is the principal subsidiary of CMS Energy (NYSE: CMS), providing natural gas and electricity to 6.7 million of the state's 10 million residents in all 68 Lower Peninsula counties.

For more information about Consumers Energy, go to www.ConsumersEnergy.com.

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This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in Consumers Energy's Securities and Exchange Commission filings.

SOURCE Consumers Energy