July 26, 2007

The Michigan Public Service Commission (MPSC) today approved a settlement agreement authorizing Consumers Energy Company to incorporate into its rates a base gas cost recovery (GCR) factor of $8.4657 per thousand cubic feet (Mcf) for the billing months of April 2007 through March 2008.

This is a decrease of 10.67 percent compared to last year's GCR factor. As a result of today's order, an average residential customer using 110 Mcf per year will see an annual decrease of $111.20.

The settlement also authorizes the utility to adjust its GCR factor on a quarterly basis, which may increase or decrease the GCR factor based on future gas price fluctuations.

Consumers Energy Company filed an application with the MPSC on December 29, 2006 , seeking approval of its GCR plan and factors for the 12 months ending March 31, 2008 .

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

Case No. U-15041