October 3, 2002

The Michigan Public Service Commission today approved a settlement agreement and authorized Cherryland Electric Cooperative, Great Lakes Energy Cooperative, Home Works Tri-County Electric Cooperative, and Presque Isle Electric & Gas Co-op to reconcile their 2001 power supply costs.  Cherryland, Great Lakes-Boyne, Great Lakes-Scottville and Presque Isle undercollected from their electric customers for their power supply costs during 2001.  The settlement agreement authorizes the companies to reconcile their undercollec­tions through a surcharge on their customers’ electric bills.  Great Lakes- Newaygo and HomeWorks Tri-County overcollected from their electric customers for their power supply costs during 2001 and will refund the overcollection on customers’ electric bills.  Today’s order reconciles Cherryland’s, Great Lakes’, HomeWorks’ and Presque Isle’s actual, allowable power supply costs with revenues collected from their customers between January 1 and December 31, 2001.

MPSC staff, Cherryland, Great Lakes, HomeWorks and Presque Isle negotiated the settlement agreement.

Cherryland, Great Lakes, HomeWorks and Presque Isle are headquartered in Grawn, Boyne City and Newaygo, Portland and Onaway, respectively.  They provide electric service to about 28,400, 110,800, 23,700 and 31,220, respectively.

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

Case No. U-12610-R