The Michigan Public Service Commission (MPSC) today approved a settlement agreement that assures that power from the Midland Cogeneration Venture Limited Partnership (MCV) will continue to serve Michigan's needs for the remaining 17 years of the plant's contract life, estimated to save ratepayers over $40 million per year.

"The Commission is delighted that this settlement agreement saves Michigan ratepayers and businesses money on their electric costs, maintains an assured supply of power, promotes the development of renewable energy, and maintains the MCV as a commercially viable company," said MPSC Chairman Orjiakor Isiogu. "I salute the parties who have worked so diligently to reach such a successful conclusion."

The MCV is a 1240 megawatt gas-fired power plant located in Midland, which provides approximately 5% of Michigan's electric capacity.  It sells power to Consumers Energy Company, as well as steam and electricity to the nearby Dow Chemical plant.  Due to the increase in natural gas prices, the MCV had become uneconomic to operate under its existing contract with Consumers Energy and the company was considering exercising its right to cancel the contract and sell the power on the open market, including to out-of-state purchasers. 

The agreement approved today reduces Consumers Energy's fixed cost payment to the MCV in exchange for changes in operations that ensure that the plant only runs when it is economic to do so.  In addition, the agreement ensures that $5 million annually will continue to be provided to support for renewable energy in Michigan.

The agreement was signed by the Midland Cogeneration Venture Limited Partnership, Consumers Energy Company, Attorney General Michael A. Cox, the Association of Businesses Advocating Tariff Equity, Dow Corning Corporation, the Michigan Environmental Council, the Public Interest Research Group in Michigan, and the Commission Staff.  New Covert Generating Company, LLC signed a statement of non-objection.  The agreement resolves a case filed by MCV on May 7, 2007.

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

Case No. U-15320