MPSC Determines Zero Net Stranded Costs in 2004 for Detroit Edison, Finds Over-Recovery in 2004 Power Supply Costs Resulting in Credit to Customers

Contact: Judy Palnau (517) 241-3323

September 26, 2006

The Michigan Public Service Commission (MPSC) today issued an order finding that Detroit Edison incurred zero net stranded costs in 2004 after revenue from wholesale power sales to third parties are used to off-set them. This results in an over-recovery of its power supply recovery costs, plus interest, of $75,852,692. The Commission authorized Detroit Edison to roll this amount into its 2005 reconciliation.

Detroit Edison, on March 31, 2005, requested reconciliation of its PSCR revenues and expenses for the 12-month period ended Dec. 31, 2004. On that date the company also filed an application seeking reconciliation of its 2004 stranded costs.

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

Case No. U-13808-R, U-14474