LANSING, December 20.  The Michigan Public Service Commission today 
authorized Consumers Energy Company to increase its annual natural gas 
revenues by $15,380,000.   Today's order authorizes the company to apply 
an interim surcharge on all its natural gas sales customers' bills, for 
service effective December 21, 2001.  The Commission approved the increase 
on an interim basis to recognize the effects of an accounting change 
previously ordered by the Commission that was designed to reduce the cost 
of gas to Consumers' customers.  The accounting change resulted in a savings 
of approximately $77 million to the customers. The issuance of today's order 
does not preclude the Commission from reconsidering the impact of the 
accounting order on rates when it issues its final order in this case.   
Consumers Energy filed an application on June 29, 2001 seeking authority to 
increase its rates for the transportation, storage, and distribution of 
natural gas by not less than $140,011,000.  Additionally, on June 29, 2001, 
the company submitted a motion for partial and immediate rate relief of not 
less than $34,465,000.

     Consumers Energy residential customers using 120 Mcf (thousand cubic 
feet) of natural gas per year will see an increase of about $0.63 on their 
monthly natural gas bills, effective immediately.  All classes of sales 
customers will also see an increase, which will vary, based on actual natural 
gas use.

     MPSC staff, the Association of Businesses Advocating Tariff Equity, 
Attorney General Jennifer M. Granholm, the Midland Cogeneration Venture 
Limited Partnership, Metro Bureau Group Services, Inc., the National Energy 
Marketers Association, and Thomas C. DeWard participated in the proceeding.

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

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


Case No. U-13000 
December 20, 2001
(MPSC approves interim rate increase for Consumers Energy's natural gas 
customers of $15,380,000)