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CONSUMERS POWER OFFERS MIDLAND COGENERATION VENTURE RELIEF

 MIDLAND, Mich., Dec. 13 /PRNewswire/ -- The Midland Cogeneration Venture Limited Partnership (MCV) announced today that, in connection with the continuing fixed energy charge dispute between MCV and Consumers Power, Consumers has submitted an irrevocable and unilateral minimum offer of relief in which it has committed to pay MCV the fixed energy charges calculated according to the terms of the Power Purchase Agreement (PPA) on all the energy delivered by MCV's cogeneration facility from the block of contract capacity above 915 megawatts (the "Nonjurisdictional Capacity").
 The offer of relief represents a "floor" for the arbitration below which payments to MCV of the fixed energy charges in dispute cannot fall.
 Consumers will schedule energy deliveries from the nonjurisdictional capacity in accordance with the provisions of the PPA. This unilateral commitment to pay fixed energy charges on delivered energy from the nonjurisdictional capacity will expire on Sept. 15, 2007, or 17 1/2 years from the commercial operation date of the facility on March 16, 1990.
 This commitment with respect to the nonjurisdictional capacity would continue to apply even if the Michigan Public Service Commission Settlement Order (which is involved in the MCV/Consumers dispute) is reversed on appeal or later amended.
 Under the terms of the offer of relief, the offer can only be revoked if Consumers, for any reason, does not succeed in reselling during 1993 any of the approximately $309 million unpaid principal amount of 10.33-percent Midland Funding Senior Secured Lease Obligation Bonds Series C due 2002.
 The MCV partnership was formed in 1987 to acquire the usable portion of the uncompleted Midland nuclear power plant and build and operate a gas-fired, combined cycle cogeneration plant. The plant is capable of producing 1,370 megawatts of electricity and up to 1.35 million pounds per hour of process steam for industrial use.
 MCV partners include CMS Midland, Inc., a subsidiary of CMS Energy Corporation; The Dow Chemical Company (limited partner); Source Midland Limited Partnership, an affiliate of Panhandle Eastern Corporation; Coastal Midland, Inc., a subsidiary of The Coastal Corporation; MEI Limited Partnership, an affiliate of Asea Brown Boveri, Inc.; Micogen Limited Partnership (limited partner), an affiliate of Fluor Corporation; and C-E Midland, Inc. (limited partner), a subsidiary of ABB-Combustion Engineering, Inc.
 -0- 12/13/93
 /CONTACT: Bruce C. Grant of Midland Cogeneration, 517-839-6014/
 (CMS)


CO: Midland Cogeneration Venture; Consumers Power Company ST: Michigan IN: UTI SU:

DC -- DE021 -- 3244 12/13/93 14:31 EST
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Publication:PR Newswire
Date:Dec 13, 1993
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