John G. Strand, Chairman Dorothy Wideman
John C. Shea Mary Jo Kunkle
David A. Svanda (517)334-6983

     LANSING, January 14.     The Michigan Public Service
Commission today completed final action on rehearing orders required to
introduce competition into the state's electric utility market.  By a 2-1 
vote, the Commission adopted a phase-in schedule that would allow 2.5% of
customers of Consumers Energy Company and Detroit Edison Company to
select an electricity supplier of their choice as early as March 31, 1998, 
if federal regulatory approvals are obtained.  Customer choice would be
available in four additional 2.5% blocks on June 30, 1998, and on January
1 of 1999, 2000, and 2001.  In 2002, all remaining customers would be able
to choose an alternative power supplier if they wish to.

     "Today's action completes a two-year process designed to provide
choice to Michigan's electric customers," said Commission Chairman John
Strand.  "During that time, we have listened to the concerns of numerous
Michigan citizens and businesses in hearings around the state and have
modified the program to address those concerns.   In our June order we
stated the general principles that all Michigan citizens should have the
opportunity to choose their electricity provider and that those who choose
to stay with their current provider should not have their rates increased
because of open access.  Today's orders reaffirm those principles.   The
administrative process is now complete and I look forward to the
development of a competitive electric market in Michigan"

     The Commission had previously issued electric restructuring orders
on June 5, 1997 and October 29, 1997.  Rehearing requests on those orders
were filed by Consumers Energy Company, The Detroit Edison Company, 
Attorney General Frank J. Kelley, the Association of Businesses Advocating
Tariff Equity, Energy Michigan, the City of Detroit, Indiana Michigan
Power Company, Kraft Foods, the Midland Cogeneration Venture Limited
Partnership, Shell Western E&P Inc., and the Michigan Independent Power
Producers Association.  Today's order addresses those rehearing requests,
with Chairman John Strand and Commissioner David Svanda voting for the
order and Commissioner John Shea dissenting.

     In addition to establishing the schedule for customer choice, today's
order resolves potential conflicts with federal tariffs, provides an initial
estimation of stranded costs, adds clarity to the annual true-up mechanism, 
provides latitude in establishing the minimum bid to participate in open
access, establishes a process for suspending the power supply cost recovery
clauses and clarifies  rates for standby service.  In addition, the 
Commission issued orders establishing the federal/state jurisdictional split 
regarding transmission and distribution facilities.  The jurisdictional split 
and some tariff matters will also require approval by the Federal Energy 
Regulatory Commission.

     The Michigan Public Service Commission is an agency within the
Department of Consumer and Industry Services.

Cases Nos. U-11290, U-11449, U-11451, U-11452, U-11453, and U-11454
January 14, 1998
(MPSC completes electric industry restructuring process)