Page: 1 of 120
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Page: 3 of 120 Allocation Method G Customer Percent Year Ending Dec. 31, 2016 Customer Counts - Total Ln Amount 1 Jan 170,774 2 Feb 170,794 3 Mar 170,835 4 Apr 170,496 5 May 170,004 6 Jun 169,335 7 Jul 168,935 8 Aug 168,944 9 Sep 169,248 10 Oct 169,903 11 Nov 170,827 12 Dec 170,847 13 Total 2,040,942 ========= Revenues - Allocation Method S Jurisdiction Percent 100.0000 %
1M Allocation Method L Page: 4 of 120 Gas Salaries and Wages Year Ending Dec. 31, 2016 Ln 1 Production 702,029 0.059058 0.092123 2 Transmission 176,183 0.014821 0.023119 3 Distribution 6,577,978 0.553366 0.863184 4 Storage 164,403 0.013830 0.021574 5 Customer Accounts 3,719,241 0.312878 6 Customer Service 547,368 0.046047 7 Sales 0 0.000000 8 Salaries & Wages Less A & G(1) 11,887,202 1.000000 1.000000 (1) This salaries and wages total does not include administrative and general. These figures are used for allocation methods in other calculations in this study, not to determine total salaries and wages for the corporation.
1M Allocation Methods M & N Page: 5 of 120 Year Ending Dec. 31, 2016 Gas Gross Plant - Allocation Method M TRANS- DISTRI- LN ENERGY DEMAND MISSION BUTION STORAGE CUSTOMER TOTAL 1 Plant In Ser 0 3,025,890 59,061,164 305,032,639 17,791,657 0 384,911,350 2 C W I P 0 343 12,406 3,213 402 0 16,364 3 Total 0 3,026,233 59,073,570 305,035,852 17,792,059 0 384,927,714 =========== =========== =========== =========== =========== =========== =========== 4 Percentages 0.0000 0.7862 15.3467 79.2450 4.6222 0.0001 100.0000 =========== =========== =========== =========== =========== =========== =========== Gas Rate Base - Allocation Method N TRANS- DISTRI- LN ENERGY DEMAND MISSION BUTION STORAGE CUSTOMER TOTAL Plus: 5 Working Cap 1,580,609 284,158 3,371,701 17,470,464 1,089,895 0 23,796,827 6 Dir MI Wk Cap 0 0 0 0 0 0 0 7 Dir WI/FERC WC 0 0 0 0 0 0 0 8 Dir RETAIL WC 0 0 0 0 0 0 0 9 Cash/Bank Bal 0 756,052 0 0 0 0 756,052 10 Fuel 0 0 0 0 0 0 0 11 Mat & Suppls 0 0 0 775,648 0 0 775,648 12 Gas Storage 13,469,260 0 0 0 0 0 13,469,260 13 Prepayments 0 36,569 9,177 342,651 8,564 0 396,961 14 Plant Fut Use 0 0 0 0 0 0 0 15 Inv in Subs 0 0 0 0 0 0 0 16 Capt Conserv 0 0 0 0 0 0 0 17 Cap Con-D Tax 0 0 0 0 0 0 0 18 Property Tax 0-25,346-494,756-2,554,749-149,013 3-3,223,861 19 Payroll Tax 0-3,464-869 -32,457-811 0-37,601 20 Income Tax -194,517-34,970-414,938-2,150,001-134,128 0-2,928,554 21 Cust Advances 0 0 0 0 0 0 0 22 Othr Prop/Invs 0-22,301-5,597-208,962-5,223 0-242,083 Less: 22 Accum Depr-SL 0 1,346,334 29,849,342 154,482,161 8,357,922 0 194,035,758 23 Tot Rate Base 14,855,352 2,670,597 31,688,946 164,196,285 10,243,421 3 223,654,604 =========== =========== =========== =========== =========== =========== =========== 24 Percentages 6.6421 1.1941 14.1687 73.4151 4.5800 0.0000 100.0000 =========== =========== =========== =========== =========== =========== ===========
PART I SECTION B Page: 6 of 120 B-3-1 Balance Sheet Assets & Other Debits INVESTOR SUPPLIED FUNDS BALANCE SHEET INVESTOR UTILITY NON- WORKING LN DESCRIPTION SOURCE TOTAL SUPPLIED PLANT UTILITY NET CAPITAL (a) (b) (c) (d) (e) (f) (g) (h) PROPERTY PLANT AND EQUIPMENT 1 Plant In Service WPB6-1c/Dp1 384,911,350 0 384,911,350 0 384,911,350 0 2 Property Held for Fut Use WPB6-2b/Fp5 0 0 0 0 0 0 3 Construction Work in Prog WPB6-3cD1p1 16,364 0 16,364 0 16,364 0 4 Total Utility Plant 384,927,714 0 384,927,714 0 384,927,714 0 DEDUCT: Accumulated Depr & Amort 5 Plant In Service WPB6-4c/Ep1 194,035,757 0 194,035,757 0 194,035,757 0 Accumulated Depr & Amort 6 Held for Future Use 0 0 0 0 0 0 7 Accumulated Depr/Depletion 194,035,757 0 194,035,757 0 194,035,757 0 8 Net Utility Plant 190,891,957 0 190,891,957 0 190,891,957 0 ADJUST LIAB ACCTS INCL IN LN 4: 9 Accum Depr related to ARO WPB5-11 22,811,231 0 22,811,231 0 22,811,231 0 in Accounts 254160 & 254485 10 NET PLANT--Asset Related Only 213,703,188 0 213,703,188 0 213,703,188 0 11 Net Plt Acquis. Adj. 114,115 WPB1-4 0 0 0 0 0 0 12 Other Prop & Invests WPB4-1 1,012,771 0 0 1,254,854 1,254,854-242,083 CURRENT & ACCRUED ASSETS: 13 Utility Plant-ARO 101200 WPB4-2 1,253,578 0 0 0 0 1,253,578 14 Accum Deprec-ARO 108200 WPB4-2 -506,351 0 0 0 0-506,351 15 Cash/Bank Bal 131,132,134,135WPB3-3a F7 756,052 0 0 0 0 756,052 16 Temporary Cash 136 WPB4-7 0 0 0 0 0 0 17 Notes Receivable 141 WPB4-7 240 0 0 0 0 240 18 Customer A/R 142 WPB4-8 20,908,705 0 0 0 0 20,908,705 19 Other A/R 143 WPB4-8 423,242 0 0 0 0 423,242 20 Acc Prov Uncoll Accts 144 WPB4-8 -2,116,889 0 0 0 0-2,116,889 21 A/R from Assoc Co. 146 WPB4-8 -252 0 0 0 0-252 22 Taxes Rec. Other Co. 147 WPB4-8 0 0 0 0 0 0 23 Prepayments 165 WPB3-4c F6 396,962 0 0 0 0 396,962 24 Accrued Utility Rev 173 WPB4-8 -4,294,271 0 0 0 0-4,294,271 25 Fuel Stk/Gas Stor.151,152,164WPB3-4b F1 13,469,260 0 0 0 0 13,469,260 26 Oth Mat & Sup 154,156,157,163WPB3-4b F1 775,648 0 0 0 0 775,648 27 Misc and Accrued 174 WPB4-8 4,092,490 0 0 1,894,593 1,894,593 2,197,897 28 Derivative Assets 175 WPB4-8 78,690 0 0 0 0 78,690 29 Int and Div Receivable 171 WPB4-8 0 0 0 0 0 0 29 TOTAL CURRENT & ACCRUED ASSETS 35,237,104 0 0 1,894,593 1,894,593 33,342,511 30 Oth Def. Debits Not in RB WPB4-9 99,151,475 39,735,360 0 0 39,735,360 59,416,115 31 Unamort Debt Exp 181 WPB5-3 0 0 0 0 0 0 32 Acc Deferred Tax 190 WPB5-12 1,527,270 1,527,270 0 0 1,527,270 0 33 TOTAL ASSETS & OTHER DEBITS 350,631,808 41,262,630 213,703,188 3,149,447 258,115,265 92,516,543 =========== =========== =========== =========== =========== ===========
PART I SECTION B Page: 7 of 120 B-3-2 Balance Sheet Liabilities & Other Credits INVESTOR SUPPLIED FUNDS BALANCE SHEET INVESTOR UTILITY NON- WORKING LN DESCRIPTION SOURCE TOTAL SUPPLIED PLANT UTILITY NET CAPITAL (a) (b) (c) (d) (e) (f) (g) (h) 1 Common Equity 201,207, WPD6-1 132,648,941 132,648,941 0 0 132,648,941 0 210,214-216,436-439,RE216 2 Preferred 204 WPB5-2 0 0 0 0 0 0 3 Total Proprietary Capital 132,648,941 132,648,941 0 0 132,648,941 0 4 Bonds 221 WPB5-3 0 0 0 0 0 0 5 Advances from Assoc 223 WPB5-3 73,833,333 73,833,333 0 0 73,833,333 0 6 Other 224,227,243 WPB5-3 0 0 0 0 0 0 7 TOTAL LONG TERM DEBT: 73,833,333 73,833,333 0 0 73,833,333 0 8 TOTAL CAPITAL 206,482,274 206,482,274 0 0 206,482,274 0 =========== =========== =========== =========== =========== =========== 9 Accum Prov Inj/Dmgs 228200 WPB5-4a 0 0 0 0 0 0 10 DefCr-Sup RetSelSERP 228300WPB5-4 1,311,451 0 0 0 0 1,311,451 11 Asset Ret. Oblig 230000 WPB5-6a 1,912,686 0 0 0 0 1,912,686 12 Notes Payable 231 WPB5-6 0 0 0 0 0 0 13 Account Payable 232 WPB5-6b 23,632,900 0 0 0 0 23,632,900 14 Notes Payable 233 WPB5-6c 12,757,260 12,757,260 0 0 12,757,260 0 15 Accts Pyable Other 234 WPB5-6d 2,760,995 0 0 0 0 2,760,995 16 Customer Deposits 235 WPB5-6e 180,036 0 0 180,036 180,036 0 17 Accrued Taxes 236 WPB5-5 6,190,017 0 0 0 0 6,190,017 18 Accrued Interest 237 WPB5-6f 34,762 0 0 0 0 34,762 19 Dividends Declared 238 WPB5-6e 0 0 0 0 0 0 20 Tax Collect. Pyble 241 WPB5-6h 92,096 0 0 0 0 92,096 21 Misc Cur/Accrued 242 WPB5-6i 1,751,816 0 0 0 0 1,751,816 22 Derivative Liab 244 WPB5-7 112,310 0 0 0 0 112,310 23 Total Current & Accrued Liabilities 50,736,329 12,757,260 0 180,036 12,937,296 37,799,033 24 Unamort Debt Disc 226 WPB5-3a 0 0 0 0 0 0 25 Fund Enrich Fac 228430 0 0 0 0 0 0 26 Customer Advances 252 WPB1-6 F2 0 0 0 0 0 0 27 Oth Deferred Credit 253 WPB5-9 20,902,106 177,276 0 0 177,276 20,724,830 28 Accum DITC 255 WPB5-10 521,201 521,201 0 0 521,201 0 29 Other Regulatory Liab WPB5-11 25,425,294 0 22,811,231 1,384,031 24,195,262 1,230,032 (Includes 254160 and 185) 30 Total Deferred Credits 46,848,601 698,477 22,811,231 1,384,031 24,893,739 21,954,862 31 Accum. Deferred Taxes WPB5-12 46,564,603 46,564,603 0 0 46,564,603 0 254400,281,282,283 32 TOTAL LIABILITIES & OTHER CREDITS 144,149,533 60,020,340 22,811,231 1,564,067 84,395,638 59,753,895 33 TOTAL EQUITY & LIABILITIES 350,631,807 266,502,614 22,811,231 1,564,067 290,877,912 59,753,895 =========== =========== =========== =========== =========== =========== 34 GRAND TOTAL (2) 1-225,239,984 190,891,957 1,585,380-32,762,647 32,762,648 =========== =========== =========== =========== =========== =========== (1) Gas Study WPB5-7a(F p2) (2) Difference in Non-Utility Grand Total and WPD1-1 are Deferred Taxes, which are included in the capital structure and not on WPD1-1.
Page: 8 of 120 WPB6-1c Statement D Page 1 of 1 Gas Plant in Service Produc- Transmis- Distribution sion tion Storage General LN Plant Plant Plant Plant Plant Total 1 Dec 353,022 56,865,386 272,354,855 16,961,706 28,501,720 375,036,689 2 Jan 353,022 57,119,552 272,765,307 16,995,706 28,538,929 375,772,517 3 Feb 353,022 57,373,719 277,020,666 17,029,706 28,576,137 380,353,251 4 Mar 353,022 57,627,886 278,091,831 17,063,706 28,773,561 381,910,007 5 Apr 353,022 57,882,052 279,355,263 17,097,706 28,836,223 383,524,267 6 May 353,022 58,136,219 279,860,947 17,131,706 28,873,432 384,355,326 7 Jun 353,022 58,390,386 280,284,012 17,165,706 29,026,633 385,219,759 8 Jul 353,022 58,644,552 280,385,485 17,199,706 29,066,313 385,649,079 9 Aug 353,022 58,898,719 281,256,347 17,233,706 29,236,792 386,978,586 10 Sep 353,022 59,152,886 282,312,604 17,267,706 29,308,587 388,394,805 11 Oct 353,022 59,407,052 284,174,683 17,301,706 29,355,796 390,592,260 12 Nov 353,022 59,661,219 285,139,972 17,335,706 29,537,569 392,027,489 13 Dec 353,022 59,915,386 286,065,525 17,369,706 29,577,392 393,281,031 14 Av(1) 353,022 58,390,386 279,988,109 17,165,706 29,014,127 384,911,350 15 Gen 2,672,868 670,778 25,044,530 625,951-29,014,127(2) 16 Tot 3,025,890 59,061,164 305,032,639 17,791,657 =========== =========== =========== =========== 17 Total Corp 384,911,350 =========== (2) Functionalized based on Salaries & Wages: See Allocation Method L. D1
Page: 9 of 120 WPB6-3c Statement D-1 Page 1 of 1 Gas Construction Work In Progress Produc- Transmis- Distribution sion tion Storage General LN Plant Plant Plant Plant Plant Total 1 Dec 0 12,320 0 322 3,722 16,364 2 Jan 0 12,320 0 322 3,722 16,364 3 Feb 0 12,320 0 322 3,722 16,364 4 Mar 0 12,320 0 322 3,722 16,364 5 Apr 0 12,320 0 322 3,722 16,364 6 May 0 12,320 0 322 3,722 16,364 7 Jun 0 12,320 0 322 3,722 16,364 8 Jul 0 12,320 0 322 3,722 16,364 9 Aug 0 12,320 0 322 3,722 16,364 10 Sep 0 12,320 0 322 3,722 16,364 11 Oct 0 12,320 0 322 3,722 16,364 12 Nov 0 12,320 0 322 3,722 16,364 13 Dec 0 12,320 0 322 3,722 16,364 14 Av(1) 0 12,320 0 322 3,722 16,364 15 G & C 343 86 3,213 80-3,722(2) 16 Total 343 12,406 3,213 402 ========== ========== ========== ========== 20 Total Corp 16,364 ========== (2) Functionalized based on Salaries & Wages: See Allocation Method L. D2
Page: 10 of 120 WPB6-4c Statement E Page 1 of 1 Gas Accumulated Depreciation Straight Line Produc- Transmis- Distribution sion tion Storage General Ln Acc Depr Acc Depr Acc Depr Acc Depr Acc Depr Total 1 Dec 257,040 29,209,579 141,559,823 7,880,178 10,982,840 189,889,461 2 Jan 257,258 29,269,793 142,069,600 7,917,106 11,150,689 190,664,445 3 Feb 257,476 29,330,265 142,379,499 7,954,099 11,318,657 191,239,995 4 Mar 257,694 29,390,995 142,893,217 7,991,158 11,422,227 191,955,291 5 Apr 257,912 29,451,983 143,371,059 8,028,283 11,544,790 192,654,026 6 May 258,130 29,513,229 143,872,413 8,065,473 11,714,752 193,423,998 7 Jun 258,348 29,574,734 144,343,444 8,102,729 11,813,036 194,092,291 8 Jul 258,566 29,636,496 144,770,599 8,140,052 11,979,622 194,785,334 9 Aug 258,783 29,698,516 145,228,556 8,177,439 12,043,319 195,406,614 10 Sep 259,001 29,760,795 145,650,690 8,214,893 12,188,373 196,073,752 11 Oct 259,219 29,823,331 146,083,850 8,252,412 12,361,334 196,780,147 12 Nov 259,437 29,886,126 146,521,313 8,289,997 12,405,756 197,362,629 13 Dec 259,655 29,949,178 146,979,788 8,327,648 12,575,401 198,091,670 14 Av(1) 258,348 29,576,303 144,287,837 8,103,130 11,810,140 194,035,758 15 Gen 1,087,986 273,039 10,194,324 254,792-11,810,140(2) 16 Total 1,346,334 29,849,342 154,482,161 8,357,922 =========== =========== =========== =========== 17 Total Corp 194,035,758 =========== (2) Functionalized based on Salaries & Wages: See Allocation Method L. E1
Page: 11 of 120 WPB3-4b Statement F Page 1 of 8 Gas Materials and Supplies OTHER FUEL ---------------------- STORED LN STOCK DISTRIB AUTO&GEN GAS 1 Dec 0 0 674,135 15,994,357 2 Jan 0 0 679,587 11,758,278 3 Feb 0 0 685,919 8,024,591 4 Mar 0 0 725,525 4,791,333 5 Apr 0 0 828,877 5,937,066 6 May 0 0 866,267 8,953,218 7 Jun 0 0 838,698 11,908,467 8 Jul 0 0 810,098 15,039,538 9 Aug 0 0 815,818 18,176,619 10 Sep 0 0 821,538 21,197,912 11 Oct 0 0 795,555 21,041,351 12 Nov 0 0 733,689 19,054,170 13 Dec 0 0 738,275 15,502,788 14 Ave (1) 0 0 775,648 13,469,260 =========== =========== =========== =========== MATERIALS AND SUPPLIES MGU OTHER FUEL -------------------- STORED TOTAL STOCK DISTRIB AUTO&GEN GAS 15 Fuel Stock 0 0 16 Other 775,648 0 775,648 17 Stored Gas 13,469,260 13,469,260 18 Responsibility Factor MGU 1.000000(2) 1.000000(3) 1.000000(3) 1.000000(4) 19 MGU 14,244,908 0 0 775,648 13,469,260 ========== ========== ========== ========== ========== (2) Demand Responsibility, Allocation Method B. (M-3 P.1) (3) Ratio of Jurisdiction Direct Assigned Distribution - Gross Plant, Allocation Method C. (M-1 P.1) (4) Energy Responsibility, Allocation Method A. (M-2 P.1)
Page: 12 of 120 WPB5-7a Statement F Page 2 of 8 Gas Customer Advances (Account 252) Ln Amount 1 Dec 0 2 Jan 0 3 Feb 0 4 Mar 0 5 Apr 0 6 May 0 7 Jun 0 8 Jul 0 9 Aug 0 10 Sep 0 11 Oct 0 12 Nov 0 13 Dec 0 14 Ave(1) 0 ===========
Page: 13 of 120 WPB3-2 Statement F Page 3 of 8 Gas Working Capital Allowance LN ASSETS: Electric Gas Non-Util Total Source 1 Utility Plant-ARO 101200 0 1,253,578 0 1,253,578 WPB4-2 2 Accum Deprec-ARO 108200 0-506,351 0-506,351 WPB4-2 3 Special Funds 129 0 0 1,254,854 1,254,854 WPB4-1 4 Temporary Cash 136 0 0 0 0 WPB4-7 5 Notes Receivable 141 0 240 0 240 WPB4-7 6 Customer A/R 142 0 20,908,705 0 20,908,705 WPB4-8 7 Other A/R 143 0 423,242 0 423,242 WPB4-8 8 Acc Prov Uncoll Accts 144 0-2,116,889 0-2,116,889 WPB4-8 9 A/R from Assoc Co. 146 0-252 0-252 WPB4-8 10 Other Rec. 147/171 0 0 0 0 WPB4-8 11 Accrued Utility Rev 173 0-4,294,271 0-4,294,271 WPB4-8 12 Misc and Accrued 174 0 2,197,897 1,894,593 4,092,490 WPB4-8 13 Derivative Assets 175 0 78,690 0 78,690 WPB4-8 14 Other Deferred Debits 0 59,416,115 39,735,360 99,151,475 WPB4-9 15 Unamort Debt Exp 181 0 0 0 0 WPB5-3a 16 TOTAL ASSETS 0 77,360,704 42,884,807 120,245,511 =========== =========== =========== =========== LIABILITIES: 17 Unamort Debt Disc 226 0 0 0 0 WPB5-3a 18 AccmProv Pnsion/Bnft 228 0 1,311,451 0 1,311,451 WPB5-4 19 Accounts Payable 230 0 1,912,686 0 1,912,686 WPB5-6a 20 Accounts Payable 232 0 23,632,900 0 23,632,900 WPB5-6b 21 Accounts Payable Othr 234 0 2,760,995 0 2,760,995 WPB5-6d 22 Customer Deposits 235 0 0 180,036 180,036 WPB5-6e 23 Accrued Interest 237 0 34,762 0 34,762 WPB5-6f 24 Dividends Declared 238 0 0 0 0 WPB5-6g 25 Tax Collections Pyble 241 0 92,096 0 92,096 WPB5-6h 26 MiscCur/Accrd Liab 242 0 1,751,816 0 1,751,816 WPB5-6i 27 Derivative Liab 244 0 112,310 0 112,310 WPB5-7 28 Oth Deferred Credits 253 0 20,724,830 177,276 20,902,106 WPB5-9 29 Reg. Liabilities 254 0 1,230,032 1,384,031 2,614,063 WPB5-11 30 TOTAL LIABILITIES 0 53,563,878 1,741,343 55,305,221 =========== =========== =========== =========== 31 WORKING CAPITAL 0 23,796,826 41,143,464 64,940,290 =========== =========== =========== =========== Working Capital is Functionalized based on Rate Base, Allocation Method N. Production Trans- Distri- Cust- Total Energy Demand mission bution Storage omer 32 Work Capital ** 23,796,826 1,580,609 284,158 3,371,701 17,470,464 1,089,895 0 33 MGU Resp 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 34 MGU 23,796,826 1,580,609 284,158 3,371,701 17,470,464 1,089,895 0 ========= ========= ========= ========= ========= ========= ========= ** Working Capital on this page, is included in Working Capital Allowance on SCH B3 (1) Non-Utility includes accounts 129%, 17400M, 191000, 235%, AND 242010
Page: 14 of 120 WPB6-2b Statement F Page 4 of 8 Gas Plant Held for Future Use Produc- Trans- Distri- Ln tion mission bution Storage General 1 Dec 0 0 0 0 0 2 Jan 0 0 0 0 0 3 Feb 0 0 0 0 0 4 Mar 0 0 0 0 0 5 Apr 0 0 0 0 0 6 May 0 0 0 0 0 7 Jun 0 0 0 0 0 8 Jul 0 0 0 0 0 9 Aug 0 0 0 0 0 10 Sep 0 0 0 0 0 11 Oct 0 0 0 0 0 12 Nov 0 0 0 0 0 13 Dec 0 0 0 0 0 14 Ave (1) 0 0 0 0 0 =========== =========== =========== =========== =========== PLANT HELD MICHIGAN Production Total Energy Demand Trans. Distrib. Storage 15 Plant Held 0 0 0 0 0 0 16 Resp Factor MGU 1.000000(2) 1.000000(2) 1.000000(2) 1.000000(2) 1.000000(2) 17 MGU 0 0 0 0 0 0 =========== =========== =========== =========== =========== =========== (2) Direct Assignment to Jurisdiction.
Page: 15 of 120 WPB3-4c Statement F Page 5 of 8 Gas Prepayments Taxes Insurance Licenses 165350 Surplus Gross Gas Other 165010 165020 165351 Lines Tax Rec Tax Cost Ln 165000 165015 110 & 120 165365 165360 165080 165200 1 Dec 0 533,913 0 0 0 0 0 2 Jan 0 495,843 0 0 0 0 0 3 Feb 0 457,773 0 0 0 0 0 4 Mar 0 419,703 0 0 0 0 0 5 Apr 0 437,662 0 0 0 0 0 6 May 0 399,361 0 0 0 0 0 7 Jun 0 361,060 0 0 0 0 0 8 Jul 0 322,759 0 0 0 0 0 9 Aug 0 284,458 0 0 0 0 0 10 Sep 0 246,157 0 0 0 0 0 11 Oct 0 207,855 0 0 0 0 0 12 Nov 0 589,212 0 0 0 0 0 13 Dec 0 549,493 0 0 0 0 0 14 Ave(1) 0 396,962 0 0 0 0 0 =========== =========== =========== =========== =========== =========== =========== Functionalization (2): Production Total Energy Demand Trans. Distrib. Storage 15 Insuran 396,961 0 36,569 9,177 342,651 8,564 16 License 0 0 0 0 0 0 17 Taxes 0 0 0 0 0 0 18 SurplsLn 0 0 0 0 0 0 19 Grs Rcts 0 0 0 0 0 0 20 Gas Csts 0 0 0 0 0 0 21 Total 396,961 0 36,569 9,177 342,651 8,564 =========== =========== =========== =========== =========== =========== (2) Following are the functionalization methods used for each sub-account: Insurance: Salaries and Wages (Allocation L). Licenses: Salaries and Wages (Allocation L). Taxes: Net Plant (Allocation Method M). SurplsLns: Rate Base (Allocation Method N). Gross Rcpt: Gross Plant (Allocation Method M). Gas Costs: Rate Base (Allocation Method N).
Page: 16 of 120 WPB3-3a Statement F Page 6 of 8 Gas Cash and Bank Balances Interest Other Special Special Working Ln Cash Deposits Deposits Fund 131 132 134-134.7 135 1 Dec 0 0 756,052 0 2 Jan 0 0 756,052 0 3 Feb 0 0 756,052 0 4 Mar 0 0 756,052 0 5 Apr 0 0 756,052 0 6 May 0 0 756,052 0 7 Jun 0 0 756,052 0 8 Jul 0 0 756,052 0 9 Aug 0 0 756,052 0 10 Sep 0 0 756,052 0 11 Oct 0 0 756,052 0 12 Nov 0 0 756,052 0 13 Dec 0 0 756,052 0 14 Ave (1) 0 0 756,052 0 =========== =========== =========== =========== Functionalization (2) Production Total Energy Demand Trans. Distrib. Storage 15 Cash 0 0 0 0 0 0 16 Int Dep 0 0 0 0 0 0 17 Oth Dep 756,052 0 756,052 0 0 0 18 Wk Fund 0 0 0 0 0 0 19 Total 756,052 0 756,052 0 0 0 =========== =========== =========== =========== =========== =========== (2) Following are the functionalization methods used for each sub-account: Cash: Rate Base (Allocation N). Interest: Rate Base (Allocation N). Special Deposits: Production - Demand Related. Working Fund: Rate Base (Allocation N).
Page: 17 of 120 WPB3-6a Statement F Page 7 of 8 Gas Taxes Property Payroll Income 1 Dec 4,048,366 37,601 2,928,554 2 Jan 4,048,366 37,601 2,928,554 3 Feb 4,048,366 37,601 2,928,554 4 Mar 4,048,366 37,601 2,928,554 5 Apr 4,048,366 37,601 2,928,554 6 May 4,048,366 37,601 2,928,554 7 Jun 4,048,366 37,601 2,928,554 8 Jul 4,048,366 37,601 2,928,554 9 Aug 1,568,626 37,601 2,928,554 10 Sep 1,568,626 37,601 2,928,554 11 Oct 1,568,626 37,601 2,928,554 12 Nov 1,568,626 37,601 2,928,554 13 Dec 4,098,196 37,601 2,928,554 14 Avg 3,223,862 37,601 2,928,555 =========== =========== =========== JURISDICTIONAL TAXES (2) Production Total Energy Demand Trans. Distrib. Storage 15 Property 3,223,864 0 25,346 494,756 2,554,749 149,013 16 Payroll 37,601 0 3,464 869 32,457 811 17 Income 2,928,554 194,517 34,970 414,938 2,150,001 134,128 18 Total 6,190,019 194,517 63,780 910,563 4,737,207 283,952 =========== =========== =========== =========== =========== =========== (2) Functionalized Allocation Basis: Property Tax - M, Net Plant Payroll Tax - L, Salaries & Wages Income Tax - N, Rate Base
Page: 18 of 120 WPB1-1c Statement F Page 8 of 8 Other Property and Investments ACCT ACCT NON- LN 128525 128600 UTILITY(2) TOTAL 1 Dec -722,656 25,000 1,154,525 456,869 2 Jan -647,467 25,000 1,170,585 548,118 3 Feb -572,278 25,000 1,186,645 639,367 4 Mar -497,089 25,000 1,202,705 730,616 5 Apr -421,900 25,000 1,218,765 821,865 6 May -346,711 25,000 1,234,825 913,114 7 Jun -271,530 25,000 1,250,885 1,004,355 8 Jul -196,341 25,000 1,266,945 1,095,604 9 Aug -121,152 25,000 1,283,005 1,186,853 10 Sep -45,963 25,000 1,299,065 1,278,102 11 Oct 29,226 25,000 1,315,125 1,369,351 12 Nov 104,415 25,000 1,331,185 1,460,600 13 Dec 286,239 25,000 1,442,496 1,753,735 14 Avg(1) -267,083 25,000 1,254,854 1,012,771 =========== =========== =========== =========== (2) Non Utility includes Account 129510
Page: 19 of 120 WPC1-1b.1 Statement H Page 1 of 15 Gas Operation and Maintenance Expenses Ln Total Operation and Maintenance Expense Amount Production - Gas Purchases: 1 Energy 72,965,832 (Hp15) 2 Dem-Peak Day (D-1) 0 (Hp15) 3 Other COG 0 (Hp15) ---------- 4 Total Prod-Gas Purch.: 72,965,832 Production - Other: 5 Energy 905,999 (Hp3) 6 Dem-Peak Day (D-1) 1,786,021 (Hp3) 7 Other COG 0 (Hp3) ---------- 8 Total Prod-Other: 2,692,020 9 Transmission 648,053 (Hp3) 10 Distribution 18,905,179 (Hp3) 11 Storage 753,794 (Hp3) 12 Customer Accounts 15,538,441 (Hp4) 13 Customer Service 1,717,555 (Hp4) 14 Sales 0 (Hp4) 15 Total Operation and Maintenance Expense 113,220,874 Note: The CUST portion of Ad & Gen from H2 line 12 is apportioned between customer accounts, customer service, and sales based on their relative percentages from AML. H1
Page: 20 of 120 WPC1-1b.2 Statement H Page 2 of 15 Gas Operation and Maintenance Expenses Pk Day Other Trans- Distri- Ln Gas Energy Demand COG mission bution Storage Cust 1 En Pur 72,965,832 72,965,832 2 D-1 Dem 0 0 3 Other 0 0 4 Tot Pur 72,965,832 72,965,832 0 0 5 Prod Cost 0 0 6 Rem Pro 1,759,464 905,999 853,465 0 7 Tot Pro 74,725,296 73,871,831 853,465 0 8 Transmi 414,022 414,022 9 Distrib 10,167,249 10,167,249 10 Storage 535,411 535,411 11 Cust Acc 10,597,939 10,597,939 12 Cust Srv 990,449 990,449 13 Sales 0 0 14 A & G(1) 15,790,508 0 932,556 0 234,031 8,737,930 218,383 5,667,608 15 Tot O&M 113,220,874 73,871,831 1,786,021 0 648,053 18,905,179 753,794 17,255,996 =========== =========== =========== =========== =========== =========== =========== =========== (1) Split on the basis of Salaries and Wages: Allocation Method L. Production and Transmission salaries and wages ratios added to determine Demand Ratio. H2
Page: 21 of 120 WPC1-1b.3 Statement H Page 3 of 15 Jurisdictional O & M by Function Pk Day Other Trans- Distri- Cust- Ln Energy Demand COG mission bution Storage omer Total 1 O&M less A&G 72,965,832 0 0 414,022 10,167,249 535,411 11,588,388 95,670,902 & Other Prod 2 less PBAB 0 0 0 0 0 0 0 0 3 Amount 72,965,833 0 0 414,022 10,167,249 535,411 11,588,388 95,670,903 Other Prod Cost: 4 Remain Prod 905,999 853,465 0 0 0 0 0 1,759,464 5 Prod Cost 0 0 0 0 0 0 0 0 6 Other Cost 905,999 853,465 0 0 0 0 0 1,759,464 A & G: 7 A&G By Funct. 0 932,556 0 234,031 8,737,930 218,383 5,667,608 15,790,508 10 A&G 0 932,556 0 234,031 8,737,930 218,383 5,667,608 15,790,508 11 TOT O&M 73,871,832 1,786,021 0 648,053 18,905,179 753,794 17,255,996 113,220,875 ========== ========== ========== ========== ========== ========== ========== ========== H3
Page: 22 of 120 WPC1-1b.4 Statement H Page 4 of 15 MGU Jurisdictional Customer Amounts Customer Customer Customer Ln Accounts Services Sales Total 1 Accts 10,597,939 0 0 10,597,939 2 Serv 0 990,449 0 990,449 3 Sales 0 0 0 0 4 A&G 4,940,502 727,106 0 5,667,608 5 Total 15,538,441 1,717,555 0 17,255,996 ============ ============ ============ ============ Note: The CUST portion of Ad & Gen from H2 line 12 is apportioned between customer accounts, customer service, and sales based on their relative percentages from AML. H4
Page: 23 of 120 WPC1-1b.5 Statement H Page 5 of 15 Gas Utility Operation and Maintenance Expense PRODUCTION PLANT Gas Steam Production Energy Demand Direct Total Ln Operation 1 Acct 700 0 0 0 0 2 701 0 0 0 0 3 702 0 0 0 0 4 703 0 0 0 0 5 704 0 0 0 0 6 Total Operation 0 0 0 0 Maint'nce 7 705 0 0 0 0 8 706 0 0 0 0 9 707 0 0 0 0 10 708 0 0 0 0 11 Total Maint'nce 0 0 0 0 12 Total Steam 0 0 0 0 Liquified Gas Production Operation 13 710 0 0 0 0 14 711 0 0 0 0 15 712 0 0 0 0 16 717 0 0 0 0 17 728 0 0 0 0 18 732 0 0 0 0 19 735 0 853,465 0 853,465 20 735 0 0 0 0 21 736 0 0 0 0 22 Total Operation 0 853,465 0 853,465 Maint'nce 23 740 0 0 0 0 24 741 0 0 0 0 25 742 0 0 0 0 26 Total Maint'nce 0 0 0 0 27 Total Liq Gas 0 853,465 0 853,465 Natural Gas Production Operation 28 754 0 0 0 0 29 756 0 0 0 0 30 Total Nat Gas 0 0 0 0 Other Gas Supply 31 800 COG 0 0 0 0 32 804 COG 71,847,970 0 0 71,847,970 33 804 Bal-COG 891,170 0 0 891,170 35 808 COG 459,044 0 0 459,044 37 812 COG -232,352 0 0-232,352 33 804 Oth 677,980 0 0 677,980 34 805 0 0 0 0 36 810 0 0 0 0 38 813 228,019 0 0 228,019 39 Total Other 73,871,831 0 0 73,871,831 40 Total Production 73,871,831 853,465 0 74,725,296 ========== ========== ========== ========== H5
Page: 24 of 120 WPC1-1b.6 Statement H Page 6 of 15 Gas Utility Operation and Maintenance Expense Transmission Expenses Transmission Function Total Ln Operation 1 Acct 850 9,776 2 856 26,150 3 857 173,863 4 859 6,335 5 Total Operation 216,124 Maint'nce 6 863 79,967 7 865 117,931 8 867 0 9 Total Maint'nce 197,898 10 Total Transmission 414,022 ======== H52
Page: 25 of 120 WPC1-1b.7 Statement H Page 7 of 15 Gas Utility Operation and Maintenance Expense Distribution Expenses Distribution Function Total Ln Operation 1 Acct 870 1,006,954 2 871 298,824 3 872 0 4 873 0 5 874 1,107,652 6 875 21,038 7 877 58,359 8 878 952,931 9 879 1,050,339 10 880 3,925,757 11 881 3,317 12 Total Operation 8,425,171 Maint'nce 13 885 50,698 14 886 0 15 887 720,616 16 888 0 17 889 53,838 18 891 76,036 19 892 395,770 20 893 310,956 21 894 134,164 22 Total Maint'nce 1,742,078 23 Total Distribution 10,167,249 ========
Page: 26 of 120 WPC1-1b.8 Statement H Page 8 of 15 Gas Utility Operation and Maintenance Expense Storage Expenses Storage Function Total Ln Operation 1 Acct 814 82,334 2 815 0 3 816 28,468 4 817 41,854 5 818 27,717 6 819 129,669 7 820 7,710 8 821 20,770 9 824 87,321 10 Total Operation 425,843 Maint'nce 11 830 13,298 12 831 0 13 832 15,204 14 833 8,374 15 834 29,264 16 835 5,623 17 836 8,659 18 837 9,958 19 842 19,188 20 Total Maint'nce 109,568 21 Total Storage 535,411 ======== H53
Page: 27 of 120 WPC1-1b.9 Statement H Page 9 of 15 Gas Utility Operation and Maintenance Expense Customer Accounts, Service, Sales and A&G Customer Accounts Total Ln 1 Acct 901 337,856 2 902 2,151,051 3 903 6,007,743 4 904 1,550,761 5 90400M 0 6 905 550,528 7 Total Accounts 10,597,939 ======== Customer Services 8 907 306 9 908 714,506 10 908M 0 11 909 267,672 12 910 7,965 13 Total Services 990,449 ======== Sales 14 911 0 15 912 0 16 913 0 17 916 0 18 Total Sales 0 ======== A & G 19 920 5,361,060 20 921 1,349,552 21 922 0 22 923 883,174 23 924 29,242 24 925 717,913 25 926 3,702,942 26 928 280,907 27 929 0 28 930 2,984,528 29 931 481,190 30 935 0 31 Total A & G 15,790,508 ======== H7
Page: 28 of 120 WPC1-1b.10 Statement H Page 10 of 15 Gas Utility Salaries and Wages PRODUCTION PLANT Steam Power Generation Energy Demand Direct Total Ln Operation 1 Acct 700 0 0 0 0 2 701 0 0 0 0 3 702 0 0 0 0 4 703 0 0 0 0 5 704 0 0 0 0 6 Total Operation 0 0 0 0 Maint'nce 7 705 0 0 0 0 8 706 0 0 0 0 9 707 0 0 0 0 10 708 0 0 0 0 11 Total Maint'nce 0 0 0 0 12 Total Steam 0 0 0 0 Liquified Gas Production Operation 13 710 0 0 0 0 14 711 0 0 0 0 15 712 0 0 0 0 16 717 0 0 0 0 17 728 0 0 0 0 18 732 0 0 0 0 19 735 0 0 0 0 20 00 735 0 0 0 0 21 736 0 0 0 0 22 Total Operation 0 0 0 0 Maint'nce 23 740 0 0 0 0 24 741 0 0 0 0 25 742 0 0 0 0 26 Total Maint'nce 0 0 0 0 Natural Gas Production Operation 28 754 0 0 0 0 29 756 0 4,531 0 4,531 30 Total Nat Gas 0 4,531 0 4,531 Other Gas Supply 27 804 0 0 0 0 28 804 Oth 466,199 0 0 466,199 29 813 0 231,300 0 231,300 30 Total Other 466,199 231,300 0 697,499 31 Total Production 466,199 235,831 0 702,029 ========== ========== ========== ========== H10
Page: 29 of 120 WPC1-1b.11 Statement H Page 11 of 15 Gas Utility Salaries and Wages Distribution Expenses Operation Total Ln 1 Acct 870 867,435 2 871 359,419 3 872 0 4 873 0 5 874 913,177 6 875 19,138 7 877 66,187 8 878 772,874 9 879 797,484 10 880 1,670,944 11 881 0 12 Total Operation 5,466,656 Maint'nce 13 885 58,533 14 886 0 15 887 392,034 16 888 0 17 889 58,930 18 891 63,820 19 892 145,506 20 893 283,543 21 894 108,955 22 Total Maint'nce 1,111,321 23 Total Distribution 6,577,978 ======== H9
Page: 30 of 120 WPC1-1b.12 Statement H Page 12 of 15 Gas Utility Salaries and Wages Transmission Expenses Transmission Function Total Ln Operation 1 Acct 850 7,307 2 856 15,908 3 857 9,736 4 859 3,686 5 Total Operation 36,638 Maint'nce 6 863 33,982 7 865 105,260 8 867 303 9 Total Maint'nce 139,546 10 Total Transmission 176,184 ======== H92
Page: 31 of 120 WPC1-1b.13 Statement H Page 13 of 15 Gas Utility Salaries and Wages Storage Expenses Storage Function Total Ln Operation 1 Acct 814 78,002 2 815 0 3 816 12,091 4 817 9,952 5 818 7,296 6 820 0 7 821 3,361 8 824 26,189 9 Total Operation 136,892 Maint'nce 10 830 15,576 11 831 0 12 832 3,981 13 833 1,746 14 834 1,891 15 835 1,765 16 836 1,115 17 837 1,436 18 Total Maint'nce 27,510 19 Total Storage 164,402 ======== H93
Page: 32 of 120 WPC1-1b.14 Statement H Page 14 of 15 Gas Utility Salaries and Wages Customer Accounts, Service, Sales and A&G Customer Accounts Total Ln 1 Acct 901 422,999 2 902 1,498,060 3 903 1,639,119 4 904 0 5 90400M 0 6 905 159,062 7 Total Accounts 3,719,241 ======== Customer Services 8 907 0 9 908 518,708 10 908W 0 11 909 28,662 12 910 0 13 Total Services 547,370 ======== Sales 14 911 0 15 912 0 16 913 0 17 916 0 18 Total Sales 0 ======== A & G 19 920 4,943,484 20 921 15,424 21 923 0 22 924 0 23 925 40,433 24 926 74,097 25 928 0 26 929 0 27 930 6,420 28 931 0 29 935 0 30 Total A & G 5,079,858 ======== H10
Page: 33 of 120 WPC1-1b.15 Statement H Page 15 of 15 Operation and Maintenance Expenses Gas Purchased Power SUMMARY ENERGY(1) PEAK DAY DEM(2) OTHER(3) TOTAL Corp. Corp. Corp. Commodity D-1 OTHER CORPORATE Ln Purchases COG COG 1 Jan 12,525,659 0 0 12,525,659 2 Feb 11,343,555 0 0 11,343,555 3 Mar 10,561,785 0 0 10,561,785 4 Apr 5,539,906 0 0 5,539,906 5 May 3,028,121 0 0 3,028,121 6 Jun 1,950,040 0 0 1,950,040 7 Jul 1,756,826 0 0 1,756,826 8 Aug 1,738,890 0 0 1,738,890 9 Sep 1,991,810 0 0 1,991,810 10 Oct 3,846,203 0 0 3,846,203 11 Nov 7,193,118 0 0 7,193,118 12 Dec 11,489,920 0 0 11,489,920 13 Tot 72,965,832 0 0 72,965,832 ============ ============ ============= ============ H15 Includes the following accounts: (1) 800000, 804070, 804210, 804220/221, 804230/231, 804240/241/243, 804260, 804320/321, 804410, 804420/421, 804440/441, 804450/451, 804460, 804490, 804520/521, 804610/614, 808100/102, 808200/204, 812000
Page: 34 of 120 WPC1-1c.1 Statement I Page 1 of 1 Depreciation Expense Straight Line Product Trans- Distri- Ln Demand mission bution Storage General Total -- ---------- ---------- ---------- ---------- ---------- ---------- 1 Jan 218 60,214 588,452 36,927 118,134 803,946 2 Feb 218 60,472 593,109 36,993 118,253 809,046 3 Mar 218 60,730 598,448 37,059 118,789 815,245 4 Apr 218 60,988 601,023 37,125 119,171 818,525 5 May 218 61,246 603,056 37,191 119,283 820,994 6 Jun 218 61,504 604,370 37,256 119,407 822,755 7 Jul 218 61,762 605,297 37,322 119,531 824,130 8 Aug 218 62,020 606,633 37,388 119,650 825,910 9 Sep 218 62,278 609,123 37,454 119,930 829,003 10 Oct 218 62,536 612,636 37,519 120,244 833,153 11 Nov 218 62,795 615,901 37,585 120,398 836,896 12 Dec 218 63,053 618,351 37,651 120,517 839,789 ---------- ---------- ---------- ---------- ---------- ---------- 13 Total 2,615 739,599 7,256,400 447,470 1,433,306 9,879,390 14 Gen(1) 132,040 33,137 1,237,207 30,922-1,433,306 ---------- ---------- ---------- ---------- ---------- 15 Total 134,655 772,736 8,493,607 478,392 16 Total Corp. 9,879,390 ========== (1)Functionalized based on Salaries and Wages. See Allocation Method L.
Page: 35 of 120 WPC1-1h Statement J Page 1 of 2 Income Taxes LN CORPORATE 1 Federal Income Tax 2,976,325 2 State Income Tax 421,577 3 Operating Income Taxes 3,397,902 ============ Income Taxes on Other Income: 4 Federal 0 5 State 0 6 Other Income Taxes 0 ============ 7 Total Income Tax Expense 3,397,902 ============ The Federal Income Tax rate is: 0.35 The State Income Tax rate is: 0.05997582 The Composite Income Tax rate is: 0.389 The Income Tax Factor is: 0.6367
1M WPC1-1i.2 Page: 36 of 120 Statement J Page 2 of 2 Allocation Method Reference Sheet for Taxes Year Ending Dec. 31, 2016 ( #) ALLOCATION METHOD ( #) STATEMENT SOURCE AMOUNT ( 1) Rate Base ( 1) M, Page 2 1.000000 ( 2) Energy-BCR ( 2) M-2, Page 1 1.000000 ( 3) Energy-RET ( 3) M-2, Page 1 1.000000 ( 4) Energy-WHL ( 4) Not Applicable 0.000000 ( 5) Demand-BCR ( 5) M-3, Page 1 1.000000 ( 6) Demand-RET ( 6) M-3, Page 1 1.000000 ( 7) Demand-WHL ( 7) Not Applicable 0.000000 ( 8) Transmission-BCR ( 8) Not Applicable 0.000000 ( 9) Transmission-RET ( 9) Not Applicable 0.000000 (10) Transmission-WHL (10) Not Applicable 0.000000 (11) Dist Plant-BCR (11) M-1, Page 1 1.000000 (12) Dist Plant-RET (12) M-1, Page 1 1.000000 (13) Dist Plant-WHL (13) Not Applicable 0.000000 (14) Dist S/L Acc Dep-BCR (14) M-1, Page 2 1.000000 (15) Dist S/L Acc Dep-RET (15) M-1, Page 2 1.000000 (16) Dist S/L Acc Dep-WHL (16) Not Applicable 0.000000 (17) Dist T/S Acc Dep-BCR (17) Not Applicable 0.000000 (18) Dist T/S Acc Dep-RET (18) Not Applicable 0.000000 (19) Dist T/S Acc Dep-WHL (19) Not Applicable 0.000000 (20) Dist S/L Dep Exp-BCR (20) M-1, Page 3 1.000000 (21) Dist S/L Dep Exp-RET (21) M-1, Page 3 1.000000 (22) Dist S/L Dep Exp-WHL (22) Not Applicable 0.000000 (23) Dist T/S Dep Exp-BCR (23) M-1, Page 4 1.000000 (24) Dist T/S Dep Exp-RET (24) M-1, Page 4 1.000000 (25) Dist T/S Dep Exp-WHL (25) Not Applicable 0.000000 (26) Dist-O&M-BCR (26) M-1, Page 5 1.000000 (27) Dist-O&M-RET (27) M-1, Page 5 1.000000 (28) Dist-O&M-WHL (28) Not Applicable 0.000000 (29) Customer-BCR (29) Alloc Method G 1.000000 (30) Customer-RET (30) Alloc Method G 1.000000 (31) Customer-WHL (31) Not Applicable 0.000000 (32) General & Common-BCR (32) Alloc Method L 1.000000 (33) General & Common-RET (33) Alloc Method L 1.000000 (34) General & Common-WHL (34) Not Applicable 0.000000 (35) Direct-Wisconsin (35) Not Applicable 0.000000 (36) Direct-Michigan (36) Direct 1.000000 (37) Direct-Wholesale (37) Not Applicable 0.000000 (38) Revenue (38) Alloc Method S 1.000000 (39) Michigan Tax Liab (39) Direct J-1, Page 2 1.984477 (40) T/S Deprec Expense (40) I, Page 2 1.000000
Page: 37 of 120 WPC1-1i1 Statement J-1 Page 1 of 3 Operating Federal Income Tax Computation LN CORPORATE 1 Book Income Before 2 Incm Txs & Int Exp 13,148,256 3 Interest Expense (1) 4,549,676 4 Income Reconcil. -7,718,838 5 Mich. apportionment 0 6 Taxable Income 879,742 7 Tax Rate 0.350 8 Taxes Calculated 307,910 9 Surtax Exemption 0 10 Amort Tx Ref/Pymnt 0 11 I.T.C. Earned 0 12 Tax Liability 307,910 13 Net Tax Adj. 2,668,415 14 Adj Tax Liability 2,976,325 15 Account 409.1 (Rnd) 2,976,325 16 I.T.C. Net (2) 0 17 Taxes Allowable 2,976,325 ============ Adj. Tax Liability (1) Includes interest related to Long-Term Debt, Short-Term Debt, and Other Interest Bearing Accounts. (2) ITC reduces income tax expense, which is required for us to apply weighted cost of permanent capital as shown on Ex A-4, Sch D-1. 19 Accrual Basis 2976325 20 Adjustment 0 21 Actual Basis 2976325 22 Jurisdictional Base 2566304 23 Allocation % 0.862239
Page: 38 of 120 WPC1-1i2 Statement J-1 Page 2 of 3 Operating State Income Tax Computation LN CORPORATE 1 Book Income Before 2 Incm Txs & Int Exp 13,148,256 3 Interest Expense (1) 4,549,676 4 Income Reconcil. -7,697,143 5 Mich. apportionment 0 6 Taxable Income 901,437 7 Tax Rate 0.060 8 Taxes Calculated 54,064 9 Surtax Exemption 0 10 Amort Tx Ref/Pymnt 0 11 I.T.C. Earned 0 12 Tax Liability 54,064 13 Net Tax Adj. 386,642 14 Adj Tax Liability 440,706 15 Account 409.1 (Rnd) 440,706 16 I.T.C. Net (2) -19,129 17 Taxes Allowable 421,577 ============ Adj. Tax Liability (1) Includes interest related to Long-Term Debt, Short-Term Debt, and Other Interest Bearing Accounts. (2) ITC reduces income tax expense, which is required for us to apply weighted cost of permanent capital as shown on Ex A-4, Sch D-1. 19 Accrual Basis 440706 20 Adjustment 0 21 Actual Basis 440706 22 Jurisdictional Base 416457 23 Allocation % 0.944975
Page: 39 of 120 WPC1-1w.4 Statement J-1 Page 3 of 3 Federal Income Tax Deductions - Interest Synchronization Ln MGU 1 Rate Base 223,654,604 2 x Wght Cost of Debt 0.020390 3 Total Interest 4,560,304 4 AFUDC Debt 0 5 Synchronized Intrst 4,560,304 ============ 1 See WPC1-1.(Mp.1) 2 See Exhibit A-4, Sch D-1. Includes weighted cost of Long-Term Debt and Short-Term Debt. Excludes weighted cost of Other Interest Bearing accounts. 4 J-2 p1
Page: 40 of 120 WPC1-1p Statement J-2 Page 1 of 2 Reconciliation of Reported Net Income with Taxable Income for Federal Income Taxes Ln Additional income and unallowable deductions: Corporate 1 (SM) Customer-BCR (29) 320 2 (SM) General & Common-BCR (32) 2,062,267 Total Additions 2,062,587 Additional deductions and non-taxable income: Corporate 1 (SM) Rate Base ( 1) -148,502 2 (SM) Demand-BCR ( 5) -3,310,181 3 (SM) Transmission-BCR ( 8) -2,348,980 4 (SM) Dist Plant-BCR (11) -3,749,265 5 (SM) Storage-WHL (43) -170,433 6 (SM) Michigan Tax Liab (39) -54,064 Total Deductions -9,781,425 Net Income Adds/Deducts -7,718,838 ============
Page: 41 of 120 WPC1-1q Statement J-2 Page 2 of 2 Reconciliation of Reported Net Income with Taxable Income for State Income Taxes Ln Additional income and unallowable deductions: Corporate 1 (SM) Customer-BCR (29) 320 2 (SM) General & Common-BCR (32) 1,535,992 Total Additions 1,536,312 Additional deductions and non-taxable income: Corporate 1 (SM) Rate Base ( 1) -148,502 2 (SM) Demand-BCR ( 5) -3,312,032 3 (SM) Transmission-BCR ( 8) -1,857,226 4 (SM) Dist Plant-BCR (11) -3,767,477 5 (SM) Storage-WHL (43) -148,218 Total Deductions -9,233,455 Net Income Adds/Deducts -7,697,143 ============
Page: 42 of 120 WPC1-1t Statement J-3 Page 1 of 2 Adjustments to Tax Liability to Arrive at Tax Provision for Federal Income Taxes Ln Tax effect of deferred expense net: Corporate 1 (NOT) Rate Base ( 1) 51,976 2 (NOT) Demand-BCR ( 5) 1,158,564 3 (NOT) Transmission-BCR ( 8) 822,235 4 (NOT) Dist Plant-BCR (11) 1,312,242 5 (NOT) Customer-BCR (29) -112 6 (NOT) General & Common-BCR (32) -742,836 7 (NOT) Direct-Michigan (36) 6,695 8 (NOT) Storage-WHL (43) 59,651 Net-of-Tax Total 2,668,415 ============
Page: 43 of 120 WPC1-1u Statement J-3 Page 2 of 2 Adjustments to Tax Liability to Arrive at Tax Provision for State Income Taxes Ln Tax effect of deferred expense net: Corporate 1 (NOT) Rate Base ( 1) 5,789 2 (NOT) Demand-BCR ( 5) 129,116 3 (NOT) Transmission-BCR ( 8) 71,750 4 (NOT) Dist Plant-BCR (11) 145,621 5 (NOT) Customer-BCR (29) -12 6 (NOT) General & Common-BCR (32) 28,653 7 (NOT) Storage-WHL (43) 5,725 Net-of-Tax Total 386,642 ============
Page: 44 of 120 WPC1-1w.1 Statement J-4 Page 1 of 3 Investment Tax Credit - Earned Production Trans- Distri- Energy Demand mission bution Storage Customer Total Ln 1 Total 0 0 0-19,129 0 0-19,129 ========= ========= ========= ========= ========= ========= ========= Investment Tax Credit - Restored Account 411040 Production Trans- Distri- Energy Demand mission bution Storage Customer Total Ln 2 Total 0 0 0 0 0 0 0 ========= ========= ========= ========= ========= ========= ========= Program Name = J4A
Page: 45 of 120 WPC1-1w. 2 Statement J-4 Page 2 of 3 Investment Tax Credit - Earned Account 411040 Production Trans- Distri- Energy Demand mission bution Storage General Total Ln 1 Jan 0 0 0-1,594 0 0-1,594 2 Feb 0 0 0-1,594 0 0-1,594 3 Mar 0 0 0-1,594 0 0-1,594 4 Apr 0 0 0-1,594 0 0-1,594 5 May 0 0 0-1,594 0 0-1,594 6 Jun 0 0 0-1,594 0 0-1,594 7 Jul 0 0 0-1,594 0 0-1,594 8 Aug 0 0 0-1,594 0 0-1,594 9 Sep 0 0 0-1,594 0 0-1,594 10 Oct 0 0 0-1,594 0 0-1,594 11 Nov 0 0 0-1,594 0 0-1,594 12 Dec 0 0 0-1,594 0 0-1,594 13 Total 0 0 0-19,129 0 0-19,129 Customer 14 Gen(2) 0 0 0 0 0 0 15 Total 0 0 0-19,129 0 0 ========= ========= ========= ========= ========= ========= 16 Total Corp -19,129 =========== (2) Functionalized based on Salaries & Wages: See Allocation Method L. Program Name = J4B
Page: 46 of 120 WPC1-1w. 3 Statement J-4 Page 3 of 3 Investment Tax Credit - Restored Account 411040 Production Trans- Distri- Energy Demand mission bution Storage General Total Ln 1 Jan 0 0 0 0 0 0 0 2 Feb 0 0 0 0 0 0 0 3 Mar 0 0 0 0 0 0 0 4 Apr 0 0 0 0 0 0 0 5 May 0 0 0 0 0 0 0 6 Jun 0 0 0 0 0 0 0 7 Jul 0 0 0 0 0 0 0 8 Aug 0 0 0 0 0 0 0 9 Sep 0 0 0 0 0 0 0 10 Oct 0 0 0 0 0 0 0 11 Nov 0 0 0 0 0 0 0 12 Dec 0 0 0 0 0 0 0 13 Total 0 0 0 0 0 0 0 Customer 14 Gen(2) 0 0 0 0 0 0 15 Total 0 0 0 0 0 0 ========= ========= ========= ========= ========= ========= 16 Total Corp 0 =========== (2) Functionalized based on Salaries & Wages: See Allocation Method L. Program Name = J4B
Page: 47 of 120 WPC1-1w.1 Statement J-5 Page 1 of 2 Tax Amortizations (419/426/431) Misc Inc./Deducts - After Tax Production Trans- Distri- Ln Energy Demand mission bution Storage General Customer Ratebase Total 1 Jan 0 0 0 0 0 0 0 0 0 2 Feb 0 0 0 0 0 0 0 0 0 3 Mar 0 0 0 0 0 0 0 0 0 4 Apr 0 0 0 0 0 0 0 0 0 5 May 0 0 0 0 0 0 0 0 0 6 Jun 0 0 0 0 0 0 0 0 0 7 Jul 0 0 0 0 0 0 0 0 0 8 Aug 0 0 0 0 0 0 0 0 0 9 Sep 0 0 0 0 0 0 0 0 0 10 Oct 0 0 0 0 0 0 0 0 0 11 Nov 0 0 0 0 0 0 0 0 0 12 Dec 0 0 0 0 0 0 0 0 0 13 Total 0 0 0 0 0 0 0 0 0 Energy Demand Trans Dist Strg Customer Ratebase 14 Gen(*) 0 0 0 0 0 0 15 Total 0 0 0 0 0 0 0 16 Resp 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 ========= ========= ========= ========= ========= ========= ========= 18 Total Corp 0 ========== (*) Functionalized based on Salaries and Wages. See Allocation Method L. Reference to Retail and Wholesale refers to subaccounting of records to recognize accounting procedure differences between Retail and Wholesale commissions. The Basic Cost Record represents the portion which can be uniformly accounted for in all jurisdictions. Program Name = J5A
Page: 48 of 120 WPC1-1w.1 Statement J-5 Page 2 of 2 Tax Amortizations (409) Misc Inc/Deducts - After Tax Production Trans- Distri- Ln Energy Demand mission bution Storage General Customer Ratebase Total 1 Jan 0 0 0 0 0 0 0 0 0 2 Feb 0 0 0 0 0 0 0 0 0 3 Mar 0 0 0 0 0 0 0 0 0 4 Apr 0 0 0 0 0 0 0 0 0 5 May 0 0 0 0 0 0 0 0 0 6 Jun 0 0 0 0 0 0 0 0 0 7 Jul 0 0 0 0 0 0 0 0 0 8 Aug 0 0 0 0 0 0 0 0 0 9 Sep 0 0 0 0 0 0 0 0 0 10 Oct 0 0 0 0 0 0 0 0 0 11 Nov 0 0 0 0 0 0 0 0 0 12 Dec 0 0 0 0 0 0 0 0 0 13 Total 0 0 0 0 0 0 0 0 0 Energy Demand Trans Dist Strg Customer Ratebase 14 Gen(*) 0 0 0 0 0 0 15 Total 0 0 0 0 0 0 0 ========= ========= ========= ========= ========= ========= ========= 18 Total Corp 0 ========== (*) Functionalized based on Salaries and Wages. See Allocation Method L. Reference to Retail and Wholesale refers to subaccounting of records to recognize accounting procedure differences between Retail and Wholesale commissions. The Basic Cost Record represents the portion which can be uniformly accounted for in all jurisdictions. Program Name = J5B
Page: 49 of 120 WPC1-2 Statement J-8 Page 1 of 1 AFUDC Income GAS AFUDC - Debt and Equity Portions Trans- Distri- Ln Energy Demand mission bution Storage General Total 1 Debt 0 0 0 0 0 0 0 2 Equity 0 0 0 0 0 0 0 3 Total 0 0 0 0 0 0 0 ========= ========= ========= ========= ========= ========= =========
Page: 50 of 120 WPC1-1f Statement K Page 1 of 3 Taxes Other Than Income Taxes Allocation Percentage Calculations Production Trans- Distri- Ln Total Energy Demand mission bution Storage Customer Direct 1 Sal & Wages 1,277,761 0 75,462 18,938 707,069 17,671 458,620 0 2 Ratebase 4,066,239 270,084 48,555 576,133 2,985,233 186,234 0 0 3 Total 5,344,000 270,084 124,017 595,071 3,692,303 203,905 458,620 0 ======== ======== ======== ======== ======== ======== ======== ========
Page: 51 of 120 WPC1-1f.1 Statement K Page 2 of 3 Gas Taxes Other Than Income Taxes by Function and by Cost Component LN FUNCTIONALIZATION BASIS GAS UTILITY FEDERAL 1 Retirement Benefits 812,694 L 2 Unemployment Comp. 6,310 L 3 PR Taxes Credited 0 L 4 Super Fund Tax 0 N 5 Highway Use Tax 0 N 6 Fed Excise Tax 640 N STATE-MICHIGAN 7 Gross Receipts Tax 0 N 8 Unemployment Comp. 36,975 L 9 Remain. Assessment 0 10 Use Tax 0 N 11 Unauthor. Ins. Tax 17,256 N 12 Wis Recycling Fee 0 N 13 Single Business Tax 0 N 14 Property Tax 4,048,343 N LOCAL-MICHIGAN 15 Real Est & Property 0 N IBS 16 IBS Payroll Tax 421,782 L OTHER 17 Franchise Tax Fees 0 N 18 State Unitary Fees 0 N Fn Alloc Method 19 Total TOTIT 5,344,000 ======== Functionalization Methods: L = Allocation Method L - Salaries & Wage N = Allocation Method N - Ratebase
Page: 52 of 120 WPC1-1f.1 Statement K Page 3 of 3 Taxes Other Than Income Taxes Allocation Percentage Calculations Production Trans- Distri- Ln Total Energy Demand mission bution Storage Customer Direct 1 AML 1.000000 0.000000 0.059058 0.014821 0.553366 0.013830 0.358925 0.000000 ======= ======= ======= ======= ======= ======= ======= 2 AMN 1.000000 0.066421 0.011941 0.141687 0.734151 0.045800 0.000000 0.000000 ======= ======= ======= ======= ======= ======= ======= These allocation percentages are used on page K2.
Page: 53 of 120 WPC1-1 Statement M Page 1 of 3 Cost of Service LN Gas SOURCE 1 Present Rates 140,474,520 2 Energy Optimizatn 0 3 Power Department 0 4 Tot Present Rates 140,474,520 5 Other Adjustments 1,118,000 WPC1-1f(i)(M-5p1) 6 Total Revenue 141,592,520 7 Gas Purchases 72,965,832 WPC1-1b.1 (H1) 8 Other O&M Exp. 40,255,042 WPC1-1b.1 (H1) 9 Total O&M Expense 113,220,874 10 Depr Expense-S/L 9,879,390 WPC1-1c.1 (I1) 11 Amort.- 406/407 0 WPC1-1c.6 12 Taxes other than Income Taxes 5,344,000 WPC1-1d (K1) 13 Operating Income 13,148,256 14 Other Inc. & Adjustments Before Taxes 0 WPC1-1f(ii) (M5p2) 15 Income before Income Taxes 13,148,256 16 Income Taxes 3,397,902 WPC1-1i.1 (J1) 17 NET INCOME 9,750,354 18 Other Inc & Adjustments After Taxes 0 WPC1-1f(ii) (M5p2) 19 ADJUSTED NET INC 9,750,354 ========= 20 Rate Base 223,654,604 Schedule B-1 (Mp2) =========
Page: 54 of 120 Allocation P Statement M Page 2 of 3 Rate Base LN Gas SOURCE 1 Gross Plant 384,911,350 WPB6-1c (D1) 2 Accum Deprec 194,035,758 WPB6-4c (E1) 3 Net Plant 190,875,592 4 C W I P 16,364 WPB6-3c (D-1p1) 5 Fut Use Plt 0 WPB6-2b (F4) 6 Plant Total 190,891,956 ======== 7 Workng Capital 23,796,827 WPB3-2 (F3) 8 *Cash & Bank 756,052 WPB3-3a (F6) 9 *Fuel Stock 0 WPB3-4b (F1) 10 *Material & Sup 775,648 WPB3-4b (F1) 11 *Gas Storage 13,469,260 WPB3-4b (F1) 12 *Prepayments 396,961 WPB3-5c (F5) 13 Sub-Total 39,194,748 ======== 14 Othr Prop & Inv -242,083 WPB1-1c (F8) 15 Sub-Total -242,083 ======== Deduct: 16 *Taxes 6,190,016 WPB3-6a (F7) 17 Cust Advances 0 WPB5-7a (F2) 18 Sub-Total 6,190,016 ======== 19 RATE BASE 223,654,605 ======== * = WORKING CAPITAL COMPONENT. Total cross checks to SCH. B-3.
Page: 55 of 120 Statement M Page 3 of 3 Total Gas Revenue Requirements Ln ENERGY DEM TRANS DIST STRG CUST DIRECT/RB TOTAL 1 Prod 73,871,831 853,465 0 0 0 0 0 74,725,296 2 Trans 0 0 414,022 0 0 0 0 414,022 3 Dist 0 0 0 10,167,249 0 0 0 10,167,249 4 Storage 0 0 0 0 535,411 0 0 535,411 5 Cus Acc 0 0 0 0 0 10,597,939 0 10,597,939 6 Cus Ser 0 0 0 0 0 990,449 0 990,449 7 Sales 0 0 0 0 0 0 0 0 8 A & Gen 0 932,556 234,031 8,737,930 218,383 5,667,608 0 15,790,508 9 Tot Op 73,871,831 1,786,021 648,053 18,905,179 753,794 17,255,996 0 113,220,874 10 Depr 0 134,655 772,736 8,493,607 478,392 0 0 9,879,390 11 Dep-406 0 0 0 0 0 0 0 0 12 TOTIT 270,084 124,017 595,071 3,692,303 203,905 458,620 0 5,344,000 13 Inc Tax 226,963 40,803 484,149 2,508,617 156,500 0 0 3,417,031 14 ITC Def 0 0 0-19,129 0 0 0-19,129 15 Tot Exp 74,368,877 2,085,496 2,500,009 33,580,577 1,592,591 17,714,616 0 131,842,166 16 Other Income & Adjs 0 0 0 0 0-268,000-850,000-1,118,000 17 Tx Amrt 0 0 0 0 0 0 0 0 18 Return 647,628 116,429 1,381,498 7,158,232 446,566 0 0 9,750,354 19 Ret Def 269,980 48,536 575,912 2,984,087 186,162 0 0 4,064,678 20 Additional Inc Tax 171,977 30,918 366,856 1,900,863 118,585 0 0 2,589,200 21 Rev Req 75,458,463 2,281,379 4,824,275 45,623,759 2,343,905 17,446,616-850,000 147,128,397 Rev Req as % 22 of Tot. 51.2875 1.5506 3.2790 31.0095 1.5931 11.8581 0.5777 100.0000 ========== ========== ========== ========== ========== ========== ========== ========== Note: Lines 13, 17, 18, and 19 are allocated based on Allocation Method N
Page: 56 of 120 Allocation Method C Statement M-1 Page 1 of 6 Determination of Percentage of Distribution Plant Used to Serve MGU Customers Total Ln Account Gas 1 374 317,007 1.000000 2 375 322,369 1.000000 3 376 136,114,629 1.000000 4 377 0 1.000000 5 378 6,794,362 1.000000 6 379-28,224 1.000000 7 380 83,286,891 1.000000 8 381, 383, 385 53,158,420 1.000000 9 382 0 1.000000 10 386 0 1.000000 11 387 0 1.000000 12 303 0 1.000000 13 302 22,656 1.000000 14 Total 279,988,110 =========
Page: 57 of 120 Allocation Method D Statement M-1 Page 2 of 6 Determination of Percentage of Accumulated Depreciation * Straight Line * Used to Serve MGU Customers Total Ln Account Gas 1 374 54,738 1.000000 2 375 228,459 1.000000 3 376 75,357,253 1.000000 4 377 0 1.000000 5 378 3,117,764 1.000000 6 379-6,411 1.000000 7 380 45,324,006 1.000000 8 381, 383, 385 20,196,018 1.000000 9 382 0 1.000000 10 386 0 1.000000 11 387 0 1.000000 12 303 0 1.000000 13 302 16,010 1.000000 14 Total 144,287,837 ========