December 22, 2004

The Michigan Public Service Commission (MPSC) today approved a settlement agreement authorizing Edison Sault Electric Company to collect $323,599 for 2003 power supply costs in the months of January through December 2005.

The utility on March 31 filed an application with the Commission requesting the commencement of a power supply cost recovery reconciliation proceeding for the 12-month period ended Dec. 31, 2003. The company indicated it experienced a net under-recovery of $323,599, including interest. It proposed to collect that amount in the period mentioned above. Based on 2005 projected sales, the reconciliation component would increase the 2005 PSCR factor by about $0.00054 per kilowatt-hour.

The MPSC found the settlement agreement to be reasonable and in the public interest.

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

Case No. U-13563-R

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Contact: Judy Palnau

(517) 241-3323