October 25, 2007

The Michigan Public Service Commission (MPSC) today authorized Consumers Energy Company to increase its bond securitization charge to 1.269 mills per kilowatt-hour and to increase the tax securitization charge to 0.617 mills per kilowatt-hour, effective Dec. 1.

As a result of this change, the monthly bill of the average Consumers Energy electric customer will increase 8 cents.

The Commission on Oct. 24, 2000 authorized Consumers Energy Company to securitize up to $468,592,000 of regulatory assets and other qualified costs. In that order, the MPSC concluded that there must be periodic true-ups of the securitization bond and tax charges to ensure that the amounts collected are sufficient to service the securitization bonds and to recover the associated tax liability.

On Oct. 12, 2007 , the utility filed its sixth annual routine true-up adjustment report. In today's order, the Commission found that the proposed adjustments are routine, the calculations accurate, and the proposed adjustments conform to the approved methodology.

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

Case No. U-12505