MPSC Approves Recovery of $9.1 Million in Enhanced Security Costs for The Detroit Edison Company

Contact: Judy Palnau (517) 241-3323

April 3, 2007

The Michigan Public Service Commission (MPSC) today approved a settlement agreement that authorizes The Detroit Edison Company to recover $9,144,940 in enhanced security costs for the period Sept. 11, 2001 through Dec. 31, 2005. As a result, the average residential customer will see an annual bill increase of approximately 48 cents.

Detroit Edison filed an application on Dec. 21, 2006 to recover approximately $11.4 million for enhanced security costs related to its Fermi 2 plant.

The Customer Choice and Electricity Reliability Act, as amended in 2003, allows for the recovery of reasonable and prudent costs of new and enhanced security measures required by state or federal law, including providing for reasonable security from an act of terrorism. The Nuclear Regulatory Commission issued orders to the electric industry after Sept. 11, 2001 dealing with facility access authorization, vehicle barrier systems, and other security enhancements.

The Commission found the relief recommended in the settlement agreement to be reasonable and in the public interest. Detroit Edison is authorized to incorporate into its rates an enhanced security factor on a bills rendered basis over a period not to exceed five years.

Detroit Edison and the MPSC staff participated in the settlement agreement.

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

Case No. U-15160