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CONSUMERS POWER SAYS MPSC REINSTATES BACKING OF MCV ACCORD

 CONSUMERS POWER SAYS MPSC REINSTATES BACKING OF MCV ACCORD
 JACKSON, Mich., Sept. 9 /PRNewswire/ -- Consumers Power Company announced today that the staff of the Michigan Public Service Commission (MPSC) has reinstated its support for a settlement proposal similar to that which the company filed on July 7 to resolve all outstanding contract issues associated with the utility's purchase of electricity from the Midland Cogeneration Venture (MCV).
 On July 30, the staff of the MPSC withdrew its support of the July 7 settlement due to several concerns which the company and the MCV have subsequently remedied through modifications of the settlement agreement and through MCV's July 31 new unconditional letter of support for the settlement.
 Signatories to the settlement continue to be the MPSC staff, the developers of 13 independent cogeneration and small power projects involved in the MCV case and Consumers Power Company. The settlement proposal needs MPSC approval to become effective and, if approved, would end litigation among the parties in at least 10 outstanding MPSC and court cases.
 The revised settlement would still permit Consumers Power Company to permanently recover in rates 915 MW of MCV capacity. However, recovery would be on the basis of levelized annual payments rather than on a "backloaded" basis for the remainder of the 35-year power contract term. Consumers Power would forgo recovery of the difference between capacity payment amounts actually collected to date and 3.77 cents/kWh for the years 1990, 1991 and 1992. Beginning Jan. 1, 1993, the capacity rate allowed for recovery would still be 3.62 cents/kWh for the first 840 MW until Jan. 1, 1998, and 3.77 cents/kWh thereafter for the remainder of the 35-year contract term. The capacity rate for the remaining 75 MW of the 915 MW permanently allowed in rates would be 3.62 cents/kWh for the entire contract term.
 In addition, like the July 7 proposal, the MCV would provide Consumers Power up to an additional 108 MW of interim power in 1993 and 138 MW in 1994 and thereafter, for a period of up to five years, during the period before which other cogenerators and small power producers enter service. The capacity rate Consumers Power would be allowed to recover for this power would be 2.75 cents/kWh.
 Future increments of generating capacity needed by Consumers Power beyond the total megawatts contained in the settlement proposal are expected to be competitively bid in accordance with the MPSC's recent competitive bidding order. The uncommitted MCV capacity could compete against other interested developers in a future bid or be sold to third parties.
 Finally, the revised proposed settlement, if approved by the MPSC, is expected to result in a pre-tax charge of about $300 million, the high end of the write-off range estimated on July 7, 1992, in connection with the settlement.
 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.
 -0- 9/9/92
 /CONTACT: Charles MacInnes of Consumers Power, 517-788-2396/
 (CMS) CO: Consumers Power Company; CMS Energy Corporation;
 Michigan Public Service Commission; Midland Cogeneration Venture ST: Michigan IN: UTI SU:


DH-ML -- DE003 -- 7365 09/09/92 09:10 EDT
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Date:Sep 9, 1992
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