LANSING, September 27.   The Michigan Public Service Commission 
today took further action to support the development of non-public 
utility electric generation capacity and encourage a competitive electric 
marketplace within Michigan by approving a special contract between 
Michigan Consolidated Gas Company and Dynegy Marketing and Trade.  
Under the terms of the Special Gas Transportation Agreement, Mich Con 
agrees to transport gas to Dynegy's plant via a 9.2 mile 20 inch 
pipeline designed, constructed, owned and operated by Renaissance 
Trust and interconnected with Mich Con's transmission pipelines in 
New Haven Township, Gratiot County.  Renaissance Trust will design, 
construct, own and operate a 680-megawatt natural gas fired peaking 
facility in Carson City.   Mich Con will provide the transportation 
service under the terms of the SGTA, for a 20-year term, with the 
opportunity to renew the contract annually thereafter.  Dynegy has 
committed to pay Mich Con a minimum $3,532,500 three-year period 
revenue commitment and a $2,100 monthly customer charge and a gas-
in-kind charge according to the company's LT-2 rate schedule.  
 
	The Commission found that the special contract is reasonable and 
in the public interest.  Further, it found that other customers and the 
public interest are adequately protected, reiterating the general principles 
that the utility company should assume full responsibility for negotiating 
the discounted prices and that its shareholders should expect to absorb much, 
if not all, of any revenue shortfall caused by the pricing and other contract 
provisions that the utility negotiates.  Therefore, unless the utility can 
make a compelling showing why a different ratemaking treatment is justified, 
the Commission will not permit the utility to reallocate the costs of serving 
contract customers to other ratepayer classes.

	Mich Con, a division of DTE, headquartered in Detroit, provides natural gas 
service to about 1.2 million customers throughout Michigan. 

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


Case No.  U-13002
September 27, 2001
(MPSC approves special contracts between Mich Con and Dynegy Marketing)