November 10, 2005

The Michigan Public Service Commission (MPSC) today approved nine settlement agreements dealing with power supply cost recovery (PSCR) reconciliations.

In Case No. U-13562-R, the Commission approved a settlement agreement with Cherryland Electric Cooperative, Great Lakes Energy Cooperative, HomeWorks Tri‑County Electric Cooperative and Preque Isle Electric & Gas Co-Op dealing with their 2003 PSCR over- or under-recoveries.  The agreement noted:  a $542,455 under‑collection for Cherryland; a $70,239 over-collection for Great Lakes; a $134 under‑collection for HomeWorks; and a $108 over-collection for Presque Isle.  The settlement agreement approved a roll-in approach whereby the cooperatives will include their 2003 over- or under-recoveries in their 2006 PSCR plans.

In Case No. U-13913-R, the Commission approved a settlement agreement dealing with Cherryland Electric Cooperative, Great Lakes Energy Cooperative, Homeworks Tri‑County Electric Cooperative and Presque Isle Electric & Gas Co-Op dealing with their 2004 over- or under-collections.  The agreement noted:  a $276,673 over-collection for Cherryland; a $1,796,963 over-collection for Great Lakes; a $657,590 over-collection for HomeWorks; and a $42,200 under-collection for Presque Isle.  The settlement agreement approved a roll-in approach whereby the cooperatives will include their 2004 over- or under-recoveries in their 2006 PSCR plans.

In Case No. U-13904-R, the Commission approved a settlement agreement with Upper Peninsula Power Company dealing with its 2004 PSCR over-collections.  The company over-recovered $103,311 from its Integrated System customers and will issue a credit of $0.00163 per kilowatt-hour (kWh) on its bills to those customers in its December 2005 billings for all standard tariff metered sales subject to the PSCR clause.  The company also over-recovered $54,176 from its Iron River System customers and will issue a credit of $0.01225 per kWh on its bills to those customers in its December 2005 billings for all standard tariff metered sales.

In Case No. U-13906-R, the Commission approved a settlement agreement with Xcel Energy dealing with its 2004 PSCR over-collection.  The company will roll into its 2005 PSCR plan the over-recovered amount of $407,366.

In Case No. U-13908-R/U-13557-R, the Commission approved a settlement agreement with the Alger-Delta Co-operative Electric Association dealing with its PSCR proceeding for the 24 month period ended Dec. 31, 2004.  The Commission approved the company’s refunds to customers that have already taken place as follows:  from 2003 over‑collections from monthly member-consumers, the company refunded $21,549 in August 2004, and $33,337 in November 2004; from the 2003 over-collection from seasonal member-consumers, the company refunded $11,886 in December 2004; from its 2004 over-collection from monthly member consumers, the company refunded the $97,462 over-collection in its March 2005 billing based on actual kilowatt-hours consumed.  The company plans to refund an over-collection of approximately $21,567 to seasonal member-consumers in its December 2005 billing by applying a refund factor based on actual kilowatt-hours used.

In Case No. U-13909-R, the Commission approved a settlement agreement dealing with Cloverland Electric Co-operative’s 2004 PSCR over-collection of $94,156.  The Commission approved the company’s refunds to customers that have already taken place as follows:  monthly member-consumers received a credit of approximately $0.000947 per kWh during the billing months of April through September 2005; and seasonal member-consumers received a credit of approximately $0.000461 per kWh during the billing months of June and July 2005 and a credit of $0.000463 per kWh in August 2005.

In Case No. U-13910-R, the Commission approved a settlement agreement dealing with Midwest Energy Cooperative’s total under-collection of $755,734 from its 2004 PSCR and prior years.  The amount will be refunded to monthly member-consumers in November and December 2005, and to irrigation member-consumers in the month of December 2005.

In Case No. U-13911-R/U-13560-R, the Commission approved a settlement agreement dealing with the Ontonagon County Rural Electrification Association’s 2004 PSCR under‑collection of $196,264.  The company will collect the amount from its member-consumers by applying a surcharge of $0.0036 per kWh over the next 24 billing months.

In Case No. U-13912-R, the Commission approved a settlement agreement dealing with Thumb Electric Cooperative of Michigan’s 2004 over-collection of $130,346.  The amount will be refunded by applying a credit of approximately 2.82 mills per kWh during the billing months of January through March, 2005.

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

Case Nos. U-13562-R, U-13904-R, U-13906-R, U-13908-R, U-13909-R, U-13911-R, U‑13910-R, and U-13912-R, U-13913-R