December 9, 2003

The Michigan Public Service Commission (MPSC) today issued an order granting Consumers Energy Company an extension of its temporary waiver for its appliance service plan (ASP) program.  The order gives Consumers until July 1, 2004 to either terminate the program or complete a full functional separation of its regulated activities from the ASP.

The Commission’s action today comes as a result of legislation (Public Act 214) that directs the Commission to extend the temporary waiver in Case No. U-12134 (issued on Feb. 20, 2003).   That order granted a temporary waiver to Consumers until

Dec. 31, 2003.

Today’s order also directs Consumers to operate its appliance service plan:

• without using messages printed on its bills, bill inserts, advertising and similar promotional material included with customers’ bills.   In addition, all promotional messages about the appliance service plan on the utility’s Web site shall fully comply with the letter and spirit of the code of conduct; and

• by requiring the appliance service plan program to bear the full cost of advertising and promotional activities through use of separate mailings.

In addition, Consumers may continue to bill customers for costs associated with the ASP program on its utility bills but only if the program is charged for on a fully allocated (not incremental) cost basis.

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

Case No. U-12134

# # #