September 21, 2004

The Michigan Public Service Commission (MPSC) today issued an order finding that Consumers Energy Company violated the MPSC’s February 20, 2003 order and the Code of Conduct adopted by the MPSC pursuant to Section 10a(4) of Michigan’s Customer Choice and Electricity Reliability Act.  The MPSC affirmed an administrative law judge’s recommendation that Consumers be fined $40,000 for its misconduct.  The Commission also directed Consumers to cease and desist from future violations of the code of conduct and the Commission’s orders.

The violation found by the MPSC relates to Consumers’ inclusion of an advertising insert in its April 2003 bills to its customers that promoted the company’s appliance service program.  In the February 20 order, the MPSC prohibited such mailings.  Consumers admitted that the prohibited insert had been sent.

“Consumers’ inclusion of the advertising insert in its April 2003 bills was prohibited by the Commission’s February 20 order and violates the Legislative mandate set forth in Section 10a of the Customer Choice and Electricity Reliability Act”, said MPSC Chair J. Peter Lark.  “The Legislation recently amended that provision of the law, and in so doing effectively codified the Commission’s orders that prohibit the marketing or promotion of an appliance service program through use of bill inserts.”

This proceeding (Case No. U-13830) was commended on May 28, 2003 on the MPSC’s own motion after two persons who received the disputed bill inserts complained.

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

Case No. U-13830

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