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April 6, 1998 Michigan Open Access Update

April 06, 1998-The new dates for submission of bids for participation in the Michigan Public Service Commission's ("MPSC") Open Access program are still unknown. The earliest date that the first bid can be presented is 30 days following Federal Energy Regulatory Commission approval of Consumers Energy's and Detroit Edison's Open Access Tariffs, and those tariffs must also be approved by the MPSC as being in compliance with its prior Orders before they are submitted to the FERC. None of this has occurred yet. Our best guess is that the first bid date will be fixed somewhere between July and October, 1998.

The MPSC currently has under consideration the approval of the utilities' Open Access Tariffs. Based on these filings, it appears that Consumers and Edison are continuing to set up road blocks to the implementation to the Open Access Program. Edison has announced that it will not implement the Program until certain preconditions have been met, and Consumers has made a number of proposals that are not in compliance with the MPSC's Orders. We remain confident, however, that eventually the tariffs will be appropriately modified and approved, and the Open Access program will be ready for implementation. Accordingly, it is not too early for customers to start preparing for participation in this program.

On a more optimistic note, the Rules for implementation of the Open Access Program by Consumers and Edison are currently being developed through informal negotiations between the utilities and the Staff of the MPSC. The proposed Rules will be rolled out in a presentation to those parties who have been participating in the regulatory proceedings in Open Access at a meeting to be held on April 17th. More specific information on the bid dates may be available at that time.

If you have any questions, feel free to call Bob Strong at (248) 642-9692, or e-mail rstrong@clarkhill.com.