LANSING, December 20.  The Michigan Public Service Commission today 
granted Michigan Consolidated Gas Company authority to implement a temporary 
natural gas cost recovery factor of up to $3.62 per thousand cubic feet (Mcf) 
during the January 2002 billing month and up to $4.38 per Mcf during the 
following months of 2002, unless it obtains approval from the Commission to 
charge a different factor.  Today's order follows an August 31, 2001 Mich Con 
filing to charge its natural gas customers $4.54 per Mcf once its frozen gas 
cost factor expires on January 1, 2002 and a November 20, 2001 Commission 
order which began a review of Mich Con's proposed natural gas cost factor 
scheduled to take effect on January 1, 2002.  Public Act 304 of 1982 
established the periodic review of the cost of gas paid by Michigan gas 
customers and permitted natural gas companies to self-implement up to the 
requestedgas cost factor three months following the filing, unless the 
Commission issues a temporary or a final order.

     The Commission took action today because of a public need to approve a 
temporary factor expeditiously, prior to the opportunity provided in the gas 
cost recovery case to undertake a comprehensive review of the individual 
purchases, contracts, and decisions encompassed by the gas cost recovery plan.
Today's order provides a transition for customers accustomed to paying the 
fixed commodity charge of $2.95 per Mcf during the preceding three years by 
moderating the increase during January, the month of highest consumption.  

     MPSC staff, the Residential Ratepayer Consortium, the Michigan Community 
Action Agency Association, and Attorney General Jennifer M. Granholm partici-
pated in the proceeding. 

     Mich Con, a Detroit-based subsidiary of DTE Energy Company, provides 
natural gas service to 1.2 million customers across Michigan.

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


Case No. U-13060
December 20, 2001
(MPSC approves temporary natural gas cost recovery factors for Michigan 
Consolidated Gas Company)