LANSING, December 20.  The Michigan Public Service Commission today approved 
an amendment to a settlement agreement and authorized Consumers Energy Company to 
increase the authorized refund to $4.9 million to customers who paid market-based 
rates for their natural gas costs between November 2000 and March 2001.  On 
September 27, 2001, the Commission approved a settlement agreement that authorized 
Consumers Energy to refund $3,435,000 to customers who paid market-based rates 
between November 2000 and March 2001 to mitigate the effects of market-based rates 
on these customers during the 2000-2001 heating season.  Checks will be sent within 
three weeks to the approximately 4,000 customers who paid market-based rates between 
November 2000 and March 2001. 

     On March 29, 2001, the Commission opened a contested case proceeding to 
determine what action, if any, should be taken to mitigate the effect of market-
based rates on customers who returned to Consumers Energy's sales service during a 
three-year experimental gas customer choice program.  Under the experimental natural 
gas customer choice program, customers who participated in the choice program and 
then returned to Consumers Energy's sales service were charged market-based rates.   
At the conclusion of the proceeding, the Commission found that market-based rates, 
between November 2000 and March 2001, while properly charged by Consumers Energy, 
were significantly higher than the Commission anticipated when it approved the 
experimental gas customer choice program in 1997.  The Commission approved the 
three-year experimental gas customer choice program for Consumers Energy's customers 
on December 17, 1997.

     Consumers Energy, headquartered in Jackson, provides natural gas service to 
nearly 1.6 million customers throughout Michigan.

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


Case No. U-12887
December 20, 2001
(MPSC approves $4.9 million amended settlement agreement for Consumers Energy's 
customers paying market-based rates)