LANSING, Michigan (March 12, 2003) - Attorney General, Mike Cox, is taking action in two Consumers Energy cases before the Michigan Public Service Commission (MPSC) in order to reduce out-of-pocket costs to Michigan ratepayers.

"Market pressures and international conditions continue to push gas prices higher and higher, and we are all feeling the pinch," said Cox. "This trend, however, does not give those in the energy business free range to gouge consumers. My office remains active in overseeing the energy industry and I will not hesitate to prosecute at the first sign of foul play. Today's action at the PSC will save ratepayers money while also allowing Consumers Energy to plan for the future."

On Tuesday, March 4, 2003, Consumers Energy filed an application requesting the MPSC to authorize issuance of bonds to finance over $1 billion in new costs. Under the proposal, customers would be required to pay nearly $1.6 billion to pay off those bonds. The Attorney General has intervened in the case to ensure that Consumers Energy is not unlawfully passing on additional costs to its ratepayers.

The second case in which the Attorney General has taken action in involves Consumers' December 2002 request to recover projected costs of natural gas sold from April 2003 through March 2004. Under state law, the utility company is entitled to recover from its customers increases in wholesale prices of natural gas, which, according to Consumers, will be $140 million more than the company originally predicted. Cox, in order to defray costs to consumers and wait to see what actually happens with gas prices in the coming months, requested a temporary order be issued that lets Consumers Energy recoup only half of the projected increase in wholesale prices.