December 18, 2007

The Michigan Public Service Commission (MPSC) today approved an electric rate increase of $69.5 million related to Consumers Energy's pending purchase of the Zeeland Generating Station,17 percent below what the utility requested.   The average residential Consumers Energy electric customer will see an increase of $1.09 per month.

In its amended application filed on July 3, the utility sought, among other things, rate relief of $84 million associated with the acquisition of a 946 megawatt gas-fired generating plant in Zeeland, Mich.

In approving the rate increase related to the Zeeland facility, the MPSC noted that ratepayers benefit substantially by the swift closure of the purchase because of a property tax abatement and by the additional capacity that will reduce the utility's 2008 power supply costs.

Today's order did, however, deny the utility's request for partial and immediate rate relief in the net additional amount of $77 million, noting that the utility is not currently experiencing a revenue deficiency.

The MPSC is an agency within the Department of Labor & Economic Growth.

Case No. U-15245