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MPSC ISSUES ORDER INVOLVING MIDLAND COGENERATION VENTURE

 MIDLAND, Mich., April 2 /PRNewswire/ -- The Midland Cogeneration Venture Limited Partnership (MCV) said today that the Michigan Public Service Commission (MPSC) issued late Wednesday a 92-page order unanimously approving, with modifications, the revised settlement proposal relating to all outstanding Michigan regulatory issues associated with the Power Purchase Agreement under which Consumers Power Company purchases electricity from MCV. Although the Order is based on the revised settlement proposal previously agreed to by Consumers Power, the MPSC staff and 13 small cogenerators and independent power producers, it contains modifications involving the price Consumers Power can recover from its customers for purchases of MCV power and other factors.
 The principal modifications to the revised settlement proposal as submitted are:
 -- The recoverable capacity rate for 915 megawatts (MW) of power purchased from MCV which was to be 3.62 cents per kilowatthour (kWh) through 1997 and 3.77 cents/kWh for the remainder of the term of the Power Purchase Agreement was modified to 3.62 cents/kWh for the full contract term. Consumers Power is still obligated to pay MCV 3.77 cents/kWh through the year 2006 under the Power Purchase Agreement.
 -- While 915 MW of capacity was approved at the above-stated rate, the additional "fill-in" capacity requested by Consumers Power was not preapproved by the MPSC, but will be subject to annual MPSC review. Consumers Power wanted to use power purchased from MCV to "fill-in" supply while other cogenerators' projects are under construction.
 -- In lieu of the proposed caps limiting recovery for available capacity of the MCV facility in the proposed settlement, the MPSC approved a choice by Consumers Power to recover for MCV power and available capacity at an 80-percent cap or, in the alternative, to dispatch MCV and recover for the full available capacity specified in the revised settlement proposal.
 -- The effective date of the modified settlement approved by the MPSC is Jan. 1, 1993, as opposed to October 1, 1992, in the revised settlement proposal.
 MCV is reviewing the Order to assess its potential economic impact to MCV. MCV has 20 days to notify the MPSC of any change in its position of non-objection to the settlement in view of the modifications approved by the MPSC.
 The MCV partnership was formed in 1987 to acquire the usable portion of the uncompleted Midland nuclear plant, 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 as 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- 4/2/93
 /CONTACT: Bruce C. Grant of Midland Cogeneration Venture, 517-839-6014/


CO: Midland Cogeneration Venture; Consumers Power Company;
 Michigan Public Service Commission ST: Michigan IN: OIL UTI SU:


JG-SB -- DE004 -- 2431 04/02/93 10:26 EST
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Publication:PR Newswire
Date:Apr 2, 1993
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