The Michigan Public Service Commission (MPSC) today approved a settlement agreement that reconciles Cloverland Electric Cooperative's 2007 power supply costs and its time interest earned ratio (TIER) ratemaking mechanism.

The settlement found the company under-collected $944,494 for the 12-month period ended Dec. 31, 2007.  That amount has been recovered in the company's 2008 power supply cost recovery (PSCR) plan.  The company intends to adjust its PSCR factor near year end to minimize any over-collection.

The settlement also authorizes the utility to increase its TIER that will increase rates by $956,904 -- effective for the next full billing month.

The utility and the MPSC staff participated in the settlement.

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

Case No. U-15011-R