LANSING, September 27.   The Michigan Public Service Commission today 
approved a settlement agreement authorizing Consumers Energy Company to refund 
$3,435,000 to customers who paid market-based rates for their natural gas costs 
between November 2000 and March 2001.  The Commission approved the settlement 
to mitigate the effects of market-based rates on these customers during the 
2000-2001 heating season.  The Commission concluded that the settlement agreement 
is reasonable and in the public interest.  

	Today's action concludes a contested case proceeding, begun by the 
Commission on March 29, 2001.  The purpose of the proceeding was to determine 
what action, if any, should be taken to mitigate the effect of market-based 
rates on customers who returned to Consumers' sales service during a three-year 
experimental gas customer choice program.   The Commission concluded that the 
most significant impact on market-based rate customers occurred as a result of 
significant increases in wholesale gas prices during the 2000-2001 winter heating 
season and the refund would cover only those customers paying market-based rates 
during the 2000-2001 heating season.   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.  The Commission 
found that the market-based rates, while properly charged by Consumers Energy, were 
significantly higher than it anticipated when it approved the experimental gas 
customer choice program in 1997.  The Commission approved a 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 about 1.5 million customers throughout Michigan.

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


Case No.  U-12887
September 27, 2001
(MPSC approves $3,435,000 refund to Consumers Energy's customers paying market
-based rates)