July 25, 2006

The Michigan Public Service Commission (MPSC) today issued an order directing Consumers Energy Company to stop collection of the five-cent per meter per month customer charge used to fund its renewable resource program and to refund amounts previously collected from its customers. The money will be refunded through a one-time credit to the customers' September bills.

The Court of Appeals determined that the MPSC lacked direct statutory authority to authorize Consumers Energy Company to charge the
five-cent customer charge. The Michigan Supreme Court, on June 21, denied the Commission's application for leave to appeal.

"There's no doubt that the Court of Appeals decision is a setback to the use of renewable energy sources in Michigan," said MPSC Chairman
J. Peter Lark. "The MPSC, however, will continue to promote the use of existing renewable energy sources and encourage the development of new facilities, as provided under Michigan law."

Chairman Lark notes that Consumers Energy electric customers interested in promoting the use of renewable energy sources can still voluntarily subscribe to the utility's "Green Generation" program for as little as $2.50 per month.

On May 18, 2004, the MPSC issued an order extending and revising Consumers Energy Company's green power pilot program. In doing so, the Commission approved a five-cent per meter per month customer charge to fund the program to the extent that voluntary payments fall short of all program costs. Larger commercial and industrial customers have been paying this charge since the May 18, 2004 order was issued; small commercial and industrial customers have been paying the charge since Jan. 1, 2005; and residential customers have been paying the charge since Jan. 1, 2006.

To promote the use of renewable resources in Michigan, the MPSC in 2005 approved an innovative plan by Consumers Energy that provides
$5 million annually to assist renewable energy projects in Michigan. The
$5 million comes from savings that resulted from allowing the utility to run the Midland Cogeneration Venture plant in a more economic manner, a plan that benefits both ratepayers and the company.

In addition, the MPSC in 2005 approved an agreement that permits customers to put any excess electricity they produce from renewable energy sources - like solar and wind power - back on the electric grid and receive a credit on their bill.

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

Case No. U-13843