December 20, 2002

The Michigan Public Service Commission today determined that retail access customers would not pay an additional charge for recovery of stranded costs toConsumers Energy Company during 2003.  The zero transition charge adopted by the Commission is a continuation of a zero transition charge approved for 2002 in the December 20, 2001 order in Case No. U-12639.  A transition charge is payable by retail open access customers to provide compensation to the electric utility for net stranded costs, if any.  The Customer Choice and Electricity Reliability Act of 2000 requires the Commission to determine the stranded costs created when retail open access customers purchase generation services from market-based alternative electric suppliers and thereby displace prior commitments made by the electric utility to serve those customers' generation requirements.

MPSC staff, Consumers Energy, the Association of Businesses Advocating Tariff Equity, Energy Michigan, Attorney General Jennifer M. Granholm, Kroger Co., the National Energy Marketers Association, Wolverine Power Marketing Cooperative, Adrian Energy Associates LLC, Cadillac Renewable Energy LLC, Genesee Power Station Limited Partnership, Granger Electric Company, Grayling Generating Station Limited Partnership, Hillman Power Company LLC, Michigan Cogeneration Systems Inc., Riverview Energy Systems, Sumpter Energy Associates Limited Partnership, Viking Energy of Lincoln Inc., Viking Energy of McBain Inc., The Michigan Association of Broadcasters, the Michigan Petroleum Association, Michigan Association of Convenience Stores, Ontario Power Generation, and Enbridge Energy, Limited Partnership, participated in the proceeding.

Consumers Energy, headquartered in Jackson, provides electric service to about 1.7 million customers in Michigan's Lower Peninsula.

The MPSC is an agency within the Department of Consumer and Industry Services.


Case No. U-13380


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