News Release

CONSUMERS ENERGY PROPOSES GREEN POWER PILOT PROGRAM

Jackson, Mich.   Tuesday, July 24, 2001

Consumers Energy electric customers may soon be able to buy electricity from new generators powered by the wind, the sun and other renewable sources of energy. The utility has asked the Michigan Public Service Commission (MPSC) to approve a three-year "Green Power Pilot Program" offering customers a way to buy all or some of their electricity from new, zero-emission generators located in Michigan.

If the program is approved as filed, participating customers will be able to buy 10 percent, 50 percent or 100 percent of their energy from green power producers. They will pay a "Green Surcharge" that will be collected by the utility and passed on to qualifying generators. Only those power generators certified by an independent organization will be eligible to receive the fees. 

Consumers Energy will be ready to accept enrollments in the pilot program on a first-come, first-served basis beginning October 1. Residential customers and most commercial and industrial customers who buy energy from Consumers Energy will be eligible to participate. The program has a maximum generating capacity sufficient to meet the needs of about 18,000 homes. 

"This program will give participating customers a way to encourage the development of new, alternative energy power sources in Michigan," said David W. Joos, president and CEO - electric. "Although Consumers Energy already generates and buys significant amounts of electricity from hydro dams, waste-to-energy plants and other renewable power sources, they are not included in this proposal. Instead, we will offer customers a way to financially support the development of new, nontraditional generators that use the sun, the wind and other renewable energy sources in our state. 

"Some of our customers have a strong interest in renewables. This pilot should give them the opportunity they seek. Equally important, this will be a real opportunity for renewable energy generators to test the market for their services." 

Consumers Energy proposes that the optional program last for a term of three years. At the end of the three-year period, the MPSC would decide whether to extend the pilot program or make it permanent. Customers would be required to sign up for a minimum of one year to give green energy providers a reliable and measurable revenue stream. However, customers could contract to pay the Green Surcharge for up to 17 years. 

Consumers Energy, the principal subsidiary of CMS Energy, is Michigan's largest utility providing natural gas and electricity to more than six million of the state's 9.9 million residents in all 68 Lower Peninsula counties.

Media Contact:  Charles E. MacInnis, 517-788-2396