December 18, 2003

The Michigan Public Service Commission (MPSC) today issued an order authorizing Consumers Energy Company (Consumers) to increase its annual gas revenues by $19,340,000 and to place into effect interim surcharges.

On March 14, 2003, Consumers filed an application seeking authority to increase its rates for the transportation, storage and distribution of natural gas in the annual amount of not less than $155,997,000 and for other relief.  At the same time, the company submitted a motion for partial and immediate rate relief in the annual amount of not less than $155,997,000.  Consumers proposed to apportion that rate relief request among its customer classes based on a class cost of service study and to collect through use of an interim surcharge.

The primary purpose of interim rate relief is to provide additional revenues on an expedited basis when a utility is experiencing a significant revenue deficiency and the revenue deficiency is likely to be experienced for a prolonged period of time.

Subsequent to its initial request, Consumers reduced the amount it sought several times.

In today’s order, the MPSC approved $19,340,000 in interim rate relief, the large majority of which is due to increases for operations and maintenance required for safety reasons. 

It also adopted the MPSC staff’s recommendation that any interim rate increase be contingent on Consumers’ acceptance of limitation on the amount of dividends it may send to its parent company – CMS Energy Corporation. 

The average monthly bill of a typical residential customer will increase approximately $1.

Consumers’ rates were last adjusted on November 7, 2002, when the Commission granted the utility, in Case No. U-13000, a $55.7 million annual increase in its rates.

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

Case No. U-13730

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