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CONSUMERS POWER COMPANY ANNOUNCES COMPREHENSIVE AGREEMENT

 CONSUMERS POWER COMPANY ANNOUNCES COMPREHENSIVE AGREEMENT
 JACKSON, Mich., March 3 /PRNewswire/ -- Consumers Power Company, the principal unit of CMS Energy Corporation (NYSE: CMS), announced today that it has reached a comprehensive agreement that would resolve a number of outstanding regulatory matters now before the Michigan Public Service Commission (MPSC) and the Michigan courts.
 The parties to the agreement are the Staff of the MPSC, the Association of Businesses Advocating Tariff Equity (ABATE) and Consumers Power Company. The agreement was filed today with the MPSC whose approval is required in order for it to become effective.
 The most significant elements of the agreement are as follows:
 1. With respect to its power purchase contract with the Midland Cogeneration Venture (MCV):
 -- The allowed capacity rate would be 3.77 cents/kilowatt-hour backloaded for 10 years at a reduced carrying charge of 8.99 percent.
 -- Beginning March 3, 1992, capacity payments would be made on the basis of plant availability rather than actual energy delivered.
 -- The MCV contracted capacity allowed in rates would be reduced from 1,240 megawatts to 1,053 megawatts. The remaining 187 megawatts must compete for future Consumers Power utility needs or be sold to a third party.
 2. Future capacity needs of Consumers Power Company would be competitively bid and would be based on a 19-percent reserve margin rather than the 23 percent currently approved.
 3. A general electric rate case filing moratorium would be in effect for one year following the date of approval of the agreement by the MPSC. However, the company could receive a revenue increase of up to $20 million, at the end of the filing moratorium, to reflect changes in the company's rate base and its equity ratio due to debt reduction in 1991 and 1992.
 4. Consumers Power Company would further agree to:
 -- Provide for MPSC review of books and records pertaining to the dealings of affiliates with the utility.
 -- Not sell or transfer electric jurisdictional assets of more than $25 million (other than the Palisades nuclear plant) without MPSC prior approval.
 Finally, the agreement would end litigation among the three parties in at least 21 outstanding MPSC and court cases.
 Consumers Power Company, the principal subsidiary of CMS Energy Corporation, 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.
 -0- 3/3/92
 /CONTACT: Charles E. MacInnis of Consumers Power Co., 517-788-0333/
 (CMS) CO: Consumers Power Company; CMS Energy Corporation ST: Michigan IN: UTI SU:


ML -- DE023 -- 4580 03/03/92 15:37 EST
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Publication:PR Newswire
Date:Mar 3, 1992
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