September 26, 2006

The Michigan Public Service Commission (MPSC) today approved settlement agreements authorizing 2006-2007 gas cost recovery (GCR) factors for Michigan Gas Utilities Corporation and Xcel Energy.

In Case No. U-14715, the MPSC authorized Michigan Gas Utilities Corporation to incorporate into its rates a base GCR factor of up to $9.59 per thousand cubic feet.

In Case No. U-14719, the MPSC authorized Xcel Energy to incorporate into its rates a uniform GCR factor of up to $0.9983 per therm.

In approving the settlement agreement, the MPSC noted that if natural gas prices continue to decline, both utilities may voluntarily further reduce their factors. Both utilities have already reduced their factors below their self-implemented factor ceilings.

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

Case Nos. U-14715 and U-14719