LANSING, December 19.  Michigan Public Service Commission Commissioners 
Laura Chappelle, David Svanda, and Robert Nelson commended the Federal Energy 
Regulatory Commission for the strong action it took this morning to ignite 
the wholesale electricity market in the Midwest.  In five key orders, the 
FERC moved clearly in the direction of a single Regional Transmission 
Organization (RTO) in the Midwest.  The orders approved the Midwest 
Independent System Operator (MISO) as the first official RTO in the country, 
but denied the same status to the Alliance RTO (ARTO), finding that the ARTO 
lacked sufficient scope to exist as a stand-alone RTO. ARTO was directed to 
explore, along with its designated "Managing Member", National Grid, options 
for integration within MISO.

     The FERC also approved, or preliminarily approved, three related applica-
tions by the International Transmission Company (ITC) to become the first fully
independent transmission company.  ITC is a subsidiary of DTE Energy.  Upon 
ultimate disposition of the ITC transmission assets to an independent entity, 
the ITC will now be affiliated with the MISO and allowed to share certain RTO 
functions with it.

     Michigan has been very active with a coalition of other states, in 
urging the FERC to take such an action to promote a healthy and fully-
functioning electric market in the Midwest. "Chairman Wood and his colleagues 
should be commended for taking decisive action to break the logjam that has 
been hindering the electricity markets in the Midwest," noted Commissioner 
Svanda.  Commissioner Nelson concurs, stating, "Michigan congratulates the 
MISO, ITC and National Grid on satisfying their respective tests, and urges 
the Alliance Companies to work diligently and with an open-mind to craft a 
productive, new working relationship under MISO auspices."  Chairman Chappelle 
adds that, "Today's action by the FERC should go a long way toward enabling 
the retail open access in Michigan to come to fruition". 


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


December 19, 2001
(MPSC announces FERC decision approving the Midwest Independent System 
Operator)