July 5, 2007

The Michigan Public Service Commission (MPSC) today reconciled power supply costs at eight electric utilities, and adjusted the times interest earned ratio (TIER) at four electric cooperatives, resulting in rate increases.

In Case No. U-14274-R, the MPSC approved a settlement agreement reconciling Consumers Energy Company's 2005 power supply costs, authorizing the utility to roll its $36,343,289 under-recovery into its 2007 power supply cost recovery (PSCR) case.

In Case No. U-14700-R, the MPSC approved a settlement agreement authorizing Alpena Power Company to roll its 2006 $27,435 net under-recovery into its current 2007 PSCR costs.

In Case No. U-14710-R, the MPSC approved settlement agreements reconciling 2006 power supply costs for Cherryland Electric Cooperative, Great Lakes Energy Cooperative and HomeWorks Tri-County Electric Cooperative. Cherryland is authorized to roll its $955,385 under-collection into its monthly PSCR factor. Great Lakes is authorized to collect an under-recovery of $2,690,420 and to adjust its TIER to increase rates by $4,389,101. The average Great Lakes residential customer will see a monthly bill increase of $1.92. HomeWorks is authorized to refund its $526,962 over-recovery to member-customers by reducing their monthly PSCR factors and to adjust its TIER to increase rates by $969,005. The average HomeWorks residential customer will see a monthly bill increase of $1.85.

In Case No. U-14711-R, the MPSC approved a settlement agreement authorizing Cloverland Electric Cooperative to roll its 2006 $680,396 under-recovery, plus its 2005 residual under-recovery of $4,862, into its monthly PSCR factor.

In Case No. U-14712-R, the MPSC approved a settlement agreement authorizing Midwest Energy Cooperative to roll its 2006 $679,526 net under-recovery into its monthly PSCR factor and to adjust its TIER to increase rates by $1,797,306 for eight customer classes. The average Midwest residential customer will see a monthly bill increase of $1.76.

In Case No. U-14714-R, the MPSC approved a settlement agreement authorizing Thumb Electric Cooperative to refund its 2006 $388,358 total over-recovery to member-customers by reducing its monthly PSCR factor and to adjust its TIER to increase rates by $556,446 for 10 of its rate classes. The average Thumb Electric residential customer will see a monthly bill increase of $2.36.

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

Case Nos. U-14274-R, U-14700-R, U-14710-R, U-14711-R, U-14712-R and U-14714-R