February 12, 2008

The Michigan Public Service Commission (MPSC) today approved settlement agreements authorizing power supply cost recovery (PSCR) factors for three electric utilities.

In Case No. U-15400, the MPSC approved a settlement agreement authorizing Alpena Power Company to implement a PSCR factor of up to 4.74 mills per kilowatt-hour during 2008.

In Case No. U-15414, the MPSC approved a settlement agreement authorizing Edison Sault Electric Company to defer recovery of its projected PSCR costs over the 36-month period ending Dec. 31, 2010, instead of collecting the same costs over the 12-month period ending Dec. 31, 2008.   The deferral results in a reduction of the required January 2008 total factor from 42.47 mills per kWh to 30.34 mills per kWh.

In Case No. U-15416, the MPSC approved a settlement agreement authorizing Indiana Michigan Power Company to implement a PSCR factor of up to 9.74 mills per kWh in its St. Joseph rate area and a PSCR factor of up to 2.39 mills per kWh in its Three Rivers rate area during 2008.  The utility is also authorized to roll-in adjustments for the estimated 2007 PSCR over-recoveries of $2,421,583 and $1,740,844 for the respective St. Joseph and Three Rivers rate areas.

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

Case Nos. U-15400, U-15414, and U-15416