August 22, 2006

The Michigan Public Service Commission (MPSC) today approved Consumers Energy Company’s power supply costs recovery (PSCR) factor for the remaining months of 2006, setting the maximum factor at $0.00994 per kilowatt-hour. In addition, while denying the Michigan Environmental Council and the Public Interest Research Group in Michigan’s (MEC/PIRGIM) request to include energy efficiency and conservation measures in this proceeding, the Commission indicated its willingness to deal with these issues in an appropriate proceeding, such as a general rate case.

Consumers Energy submitted its 2006 PSCR application on Sept. 30, 2005. It subsequently sought higher PSCR factors. The Commission issued an order on Dec. 22, 2005, which set temporary factors at levels artificially low to minimize “rate shock” to ratepayers.

Today’s order acts to eliminate at least a portion of the under-recovery attributable to the anti‑rate shock measures adopted in the Dec. 22, 2005 order.

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

Case No. U-14701