December 4, 2007

The Michigan Public Service Commission (MPSC) today approved a settlement agreement between Indiana Michigan Power Company and Fowler Ridge Wind Farm that permits the utility to include the costs associated with the power purchase agreement (PPA) in its power supply costs recovery (PSCR) clause and factors.

The utility on August 8 filed an application with the MPSC seeking an expedited review and approval of a long-term renewable energy PPA with Fowler Ridge Wind Farm.  It entered into the PPA on August 3 for the purchase of 100 megawatts of electric capacity and about 300,000 megawatt-hours of energy annually for a 20-year term.

"The Commission is pleased to approve this settlement agreement that will utilize renewable energy for the next 20 years," said MPSC Chairman Orjiakor Isiogu.  "Such long-term agreements enhance Michigan's electric reliability and the environment."

Michigan law requires the MPSC to approve PPAs that have associated capacity charges for longer than a six month period.  Approval is required prior to the PSCR reconciliation.

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

Case No. U-15361