Summary
CMS Energy Corporation, through its subsidiary Consumers Energy Company, announced the completion of its acquisition of Zeeland Power Company, L.L.C. on December 21, 2007. This acquisition includes the 946-megawatt gas-fired Zeeland Generating Plant in Michigan, purchased for a base price of $517 million from an affiliate of LS Power Group. The Michigan Public Service Commission (MPSC) has deemed the acquisition of the Zeeland Generating Plant reasonable and prudent, allowing Consumers Energy to recover associated costs through future retail rate increases. The MPSC approved an annual retail rate increase of $69.5 million to cover these costs. However, the commission denied the company's request for interim rate relief and deferred final rate decisions to a later date.
Key Highlights
- 1Consumers Energy Company acquired 100% of Zeeland Power Company, L.L.C. for a base purchase price of $517 million.
- 2The acquired asset is the 946-megawatt gas-fired Zeeland Generating Plant located in Zeeland, Michigan.
- 3The Michigan Public Service Commission (MPSC) found the acquisition to be reasonable and prudent.
- 4Consumers Energy is permitted to recover costs associated with the Zeeland Generating Plant through future retail rates.
- 5An annual retail rate increase of $69.5 million has been approved by the MPSC to recover plant-related costs.
- 6The MPSC denied Consumers Energy's request for interim rate relief.
- 7Several issues, including final rate relief, have been deferred by the MPSC to a later phase of the case.