November 10, 2005

The Michigan Public Service Commission (MPSC) today directed The Detroit Edison Company and Consumers Energy Company to file statements on or before Nov. 18 that identify the power supply cost recovery (PSCR) factors they propose to implement in January 2006. The administrative law judges in the cases were directed to set hearing schedules in the cases that deal with the issue of a temporary order and will be completed by no later than noon on Dec. 16.

The Commission noted that because the proposed factors are substantially higher than the current factors, a public hearing should be conducted on the proposed factors.

In Case No. U-14701, Consumers Energy Company is seeking approval to apply throughout 2006, a maximum $0.01011 per kilowatt-hour (kWh) PSCR factor.  The current PSCR factor, capped by Public Act 141, is $0.00350 per kWh for residential customers and $0.00737 per kWh for all others.

In Case No. U-14702, Detroit Edison Company is seeking approval to apply throughout 2006 maximum PSCR factors subject to increase based on a contingency matrix that uses projected power supply cost increases associated with electric choice participation rates and the company’s projected power supply expenses of 4.99 mills per kWh on residential customers’ bills whose rates were subject to caps during 2005, and 8.29 mills per kWh on the commercial and industrial customers whose rates were not capped in 2005, including an amount reflecting the projected 2005 PSCR Plan year under‑collection.  The company currently charges its retail electric customers a PSCR factor of up to 0.48 mills per kWh.
 

Under Michigan law, utilities may self-implement proposed PSCR factors unless the Commission conducts a review.

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

Case Nos. U-14701 & U-14702