John G. Strand, Chairman Dorothy Wideman
David A. Svanda Mary Jo Kunkle
Robert B. Nelson 517.241.6160

     LANSING, June 19.  The Michigan Public Service Commission
continued to advance  implementation of the "Customer Choice and Electricity
Reliability Act",  today approving  a licensing procedure for alternative electric
suppliers.     The Commission also directed MPSC staff to submit draft licensing
application forms and processing instructions to the Commission within 14 days.

     On June 3, 2000, Governor John Engler signed into law Public Acts 141
and 142 of 2000.  Public Act 141 directed the Commission to issue orders
establishing a licensing program for all alternative electric suppliers.  PA 141
empowered the Commission to ensure that suppliers choosing to participate in
Michigan retail markets meet certain requirements, including a demonstration of
their  financial capability, technical competence to engage in energy transactions,
and ability to operate safely.  Today's order establishes the framework for
alternative electric suppliers to participate in the Michigan's retail electric market
under P.A. 141.  

     Under the Retail Access Participation Licensing Program an alternate
electric supplier must:

--   Provide the Commission with detailed information, including its business
     name and address, telephone number, and 24 hour customer contact name
     and number;
--   Verify any authorization required by the Federal Energy Regulatory
--   Demonstrate it has the necessary technical, financial, and managerial
     capabilities to ensure adequate service to Michigan customers;
--   Comply with MPSC winter protection rules.
     The Commission will process alternative electric supplier applications
without time consuming formal contested hearings.  Under normal circumstances,
applications will be processed within a 30 day timeframe.

     "Governor John Engler and the Michigan legislature have empowered the
Commission to move Michigan forward as a leader in customer choice for electric
service," said Chairman John Strand.  "We are anxious to move ahead quickly to
see the  a competitive electric market develop  for all Michigan customers," noted
Mr. Strand.  

     The MPSC is an agency within the Department of Consumer and Industry

Case No. U-11915
June 19, 2000
(MPSC establishes licensing procedure for alternative electric suppliers)