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DUFF & PHELPS: CONSUMERS POWER AND DETROIT EDISON REVIEWED AS MICHIGAN PUBLIC SERVICE COMMISSION APPROVES RETAIL WHEELING EXPERIMENT

 CHICAGO, April 18 /PRNewswire/ -- The following was released today by Duff & Phelps:
 Last week, the Michigan Public Service Commission (MPSC) unanimously approved the framework for a retail wheeling experiment in the state. The experiment will be limited to 90 mw for Detroit Edison (DTE) and 60 mw for Consumers Power (about 1 percent of the peak load for each company) and will be coordinated with each company's next solicitation of new capacity (Detroit Edison currently estimates that it will not require additional capacity until around the year 2000). The experiment will continue for five years, after which, retail wheeling customers would be allowed to return to their local utility. Customers between 2 mw and 10 mw per location are expected to be eligible for participation in the program.
 Upcoming MPSC re-hearings on the matter will address transmission/sub-transmission pricing issues. The order stipulates the alternative supplier must obtain a franchise agreement from the municipality in which the retail customer is located; obtain a certificate of convenience and necessity under Act 69 of Michigan law (i.e., effectively treated as a public utility); and submit the rates, terms and conditions of the contract for MPSC approval.
 Due to the limited scope of this MPSC order, neither DTE's nor CPCo's credit quality should be affected in the near term. Cost control efforts and reductions in industrial subsidization of other retail classes, could potentially ward off longer-term effects of this action. Transmission/sub-transmission pricing could potentially become a contentious issue for all parties in the re-hearing process.
 Currently, Consumers Power's senior debt is rated 'BBB' (Triple-B) and Detroit Edison's senior debt is rated 'BBB+' (Triple-B-Plus).
 -0- 4/1/94
 /CONTACT: Jay K. Ritter, 312-630-4666 (Detroit Edison), or Lawrence S. Alberts, 312-630-4623 (Consumers Power), both of Duff & Phelps Credit Rating Co./
 (DTE)


CO: Consumer Power; Detroit Edison ST: Michigan IN: UTI SU: RTG

CK -- NY052 -- 8762 04/18/94 11:14 EDT
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Publication:PR Newswire
Date:Apr 18, 1994
Words:318
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