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CONSUMERS POWER COMPANY'S TYPICAL CUSTOMER CAN EXPECT LOWER WINTER BILLS

CONSUMERS POWER COMPANY'S TYPICAL CUSTOMER CAN EXPECT LOWER WINTER BILLS
 JACKSON, Mich., Oct. 6 /PRNewswire/ -- Consumers Power Company's typical residential natural gas customer can expect to pay almost 27 percent less this coming winter for consumption during a peak month, compared to seven years ago.
 Based on an average of normal winter temperatures, the utility's typical residential gas customer consuming 25,000 cubic feet during a peak month, can expect to pay $107.65. That amount is $3.76, or 3.5 percent, lower than last winter, and $39.07,or 26.6 percent, lower than the winter of 1985-86. Lower than average temperatures could result in higher consumption and higher bills.
 The reduction in the cost of gas to Consumers Power is due to several factors, including long-term domestic and Canadian supply contracts which the utility negotiated in the mid-1980s, and its extensive gas storage capacity which enables it to take advantage of attractive spot market prices.
 Consumers Power's gas supply mix is comprised of the following: 20 percent from various Canadian and domestic long-term contracts; 20 percent from Michigan producers; 20 percent from spot market purchases; and 40 percent through a guaranteed fixed pricing contract with interstate supplier Trunkline Gas Company, a subsidiary of Panhandle Eastern Corporation (NYSE: PEL). The contract with Trunkline is considered to be one of the first interstate pipeline supply contracts in the industry in which the priced is based on negotiations between buyer and seller, as opposed to automatic passthroughs of gas costs incurred by the pipeline.
 "The more than 3 million Michigan residents provided natural gas service by Consumers Power can be assured that they are getting the best possible price for heating their homes," said Michael G. Morris, the utility's chief operating officer.
 Consumers Power's residential natural gas rates are lower than those of three-quarters of the nato?n's gas utilities, according to a recent independent survey by the National Association of Regulatory Utility Commissioners.
 Approximately 120 billion cubic feet, about half of the annual gas supply requirement for Consumers Power, is stored in 13 storage fields operated by the utility and a subsidiary, Michigan Gas Storage Company. These former gas-producing fields are generally regarded as among the most extensive storage facilities in North America. Consumers Power's gas storage fields are located in the counties of Allegan, Macomb, Oakland, Ottawa, St. Clair, Washtenaw and Wayne. The storage fields operated by Michigan Gas Storage are located in the counties of Clare, Missaukee and Osceola.
 Consumers Power Company, the principal subsidiary of CMS Energy Corporation (NYSE: CMS), is Michigan's largest natural gas and electric utility serving almost 6 million of the state's 9 million residents in 67 of the 68 Lower Peninsula counties. It is the nation's seventh- largest gas distribution utility serving 215 cities and villages including suburban Detroit, Bay City, Flint, Jackson, Kalamazoo, Lansing, Pontiac and Saginaw in 40 of the 68 Lower Peninsula counties.
 -0- 10/6/92
 /CONTACT: Dan Bishop of Consumers Power Company, 517-788-0333/
 (CMS PEL) CO: Consumers Power Company; CMS Energy Corporation; Trunkline Gas
 Company; Panhandle Eastern Corporation ST: Michigan IN: UTI OIL SU: CON


KE-SM -- DE018 -- 7122 10/06/92 13:46 EDT
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Publication:PR Newswire
Date:Oct 6, 1992
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