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

     LANSING, June 5.  Consumers Energy Company's and The Detroit
Edison Company's residential electric customers will receive a pleasant surprise
this month a 5% rate reduction in their electric bills.  Following a call to
action by Governor John Engler last month, the Michigan legislature passed, and
the Governor signed into law Public Act 141 of 2000, requiring a 5% rate
reduction for Consumers Energy's and Detroit Edison's residential electric
customers.  Under the law signed by Governor Engler on June 3,  the
Commission is directed to establish residential electric rates for each utility with
1,000,000 or more retail customers in Michigan at a level that is 5% less than the
rates that were authorized or in effect on May 1, 2000.  The Michigan Public
Service Commission today ordered Consumers Energy and Detroit Edison to 
incorporate a 5% reduction in residential rates, effective immediately.

     The Commission also ordered Consumers Energy and Detroit Edison to
include, conspicuously on each residential bill,  the dollar amount saved as a
result of this reduction,  attributable to the electric restructuring legislation. 
Additionally,  today's order concludes that the legislation does not permit Detroit
Edison to collect $8.6 million from its electric customers  for undercollected
1998 power supply costs because the surcharge was not approved by May 1, 2000.

     "The Commission is pleased to note that most of  Michigan's residential
electric customers will see an immediate 5% reduction in their electric rates and
these rates will remain frozen until December 31, 2003 or later," said Chairman
John Strand.  "Additionally, Public Acts 141 and 142 provide the legal
framework to foster electric competition in the state," stated Mr. Strand.

     Detroit Edison, headquartered in Detroit, provides electric service to
about 2.1 million customers in Michigan.  Consumers Energy, headquartered in
Jackson, provides electric service to more than 1.6 million customers.

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

Case No. U-12464
June 5, 2000
(MPSC orders 5% rate reduction for Consumers Energy's and Detroit Edison's
residential electric customers)