LANSING - Attorney General Mike Cox announced today that a settlement agreement has been signed with Consumers Energy Company, the Midland Cogeneration Venture Limited Partnership (MCV), the Michigan Public Service Commission staff, the Association of Businesses Advocating Tariff Equity (ABATE) and Dow Corning that will reduce power supply costs by $40 million.

            The Michigan Public Service Commission must approve the settlement.

            Cox said, "This settlement will reduce the costs of generating electricity and result in millions of dollars in savings to customers."

            The settlement was signed with Consumers Energy Company, which buys electricity from the Midland Cogeneration Venture Limited Partnership's (MCV) power plant at Midland, Michigan. Those contracts have been in place since 1986.

            The settlement resolves a case in which MCV was asking the Public Service Commission to approve a rate increase totaling $40 million per year. Instead, the settlement will reduce costs for Consumers Energy and its ratepayers by $40 million per year by completely revising the contract terms and prices.

            According to Cox, "Michigan families have already endured a lot - high unemployment, rising gas prices, and mortgage foreclosures. These energy savings are welcome news for Michigan families and ratepayers."

            This settlement will allow MCV to build new steam boilers at the Midland plant, it will reduce the amount of money spent to buy natural gas at the plant, and it will allow Consumers Energy to buy electricity from the plant only when cheaper electricity is not available from alternative sources.

            Cox said, "This settlement is historic because it resolves problems that have been lingering since the mid-1980's when what was then known as Consumers Power Company converted its nuclear power plant at Midland into a plant operating natural gas turbine generators. This settlement preserves more than 200 high-paying jobs at MCV's plant by helping MCV to solve its current financial problems."

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