October 3, 2002

The Michigan Public Service Commission today granted Consumers Energy Company authority to construct and operate the Lyon 29 Gas Storage Field and the Lyon 29 Pipeline in Lyon Township, Oakland County.  Consumers Energy will convert the depleted Lyon 29 Niagaran gas reservoir, using existing wells and making necessary improvements to operate as a natural gas storage facility, providing up to 125 million cubic feet of gas per day during peak winter periods to meet overall system loads.  The pipeline, a 12-3/4 inch outer diameter line approximately 1.59 miles long, will be used to inject gas into the Lyon 29 storage field during warm weather months and to remove gas for use by Consumers Energy’s customers during the winter.  Consumers Energy requested approval to convert the Lyon 29 field to gas storage and construct associated pipeline facilities on May 2, 2002.

The pipeline will meet the requirements of the Michigan Gas Safety Standards if constructed, tested and operated as proposed.  Consumers Energy must file with the Commission, within 60 days after construction, a completion report that includes pressure test data and a map of the pipeline, as constructed.  The Commission also directed Consumers Energy to make the appropriate filings if, in the future, the Storage Field or Pipeline are used to store or transport third party natural gas.

Consumers Energy is headquartered in Jackson, Michigan.

The MPSC is an agency within the Department of Consumer and Industry Services.

Case No. U-13322