Sault Ste. Marie, Michigan
September 19, 2000

Don Sawruk, President
(906) 632-5150

Edison Sault Electric Company announces that it has recently placed an order for submarine cable replacements to Mackinac Island to be installed before year-end 2000. The Company sent out bid quotations to four submarine cable manufacturers with only one manufacturer responding in being able to deliver the type of cable requested by the required installation date. The new cable, rated to carry a capacity of at least 14MW, will be manufactured in Oslo, Norway, by as early as November 5 and then sent by ocean freighter to Mackinac Island, to be installed during the latter part of November or the first week in December.

Two Company representatives recently traveled to Norway to learn firsthand what needs to be done prior to the arrival of the cable and also emphasize to the cable manufacturer the importance of timely delivery yet this year. The Company is also taking steps to ensure that a second new temporary cable could become available for this winter should the cable on order somehow fail to be delivered on time.

The Company has also requested bids from the four submarine cable manufacturers for a second cable (or sets of cable) to be installed in the spring of 2001 before the summer tourist season begins. At that time, the Island will be served by at least two new sets of cables with each set capable of being able to carry the entire Island load.

For the remainder of this year, the current cables will continue to supply the Island until at least the new cables are in place. The backup generators which are currently on the Island will remain there until the new cable is operational later this year.

Current estimates for the total monetary impact on the Company could be as much as $5,000,000 which includes resources spent to date to make repairs and improvements to the current system, costs of maintaining the diesels until the new cable is in place, costs for one new cable yet this year, costs for another cable facility next year, and costs to upgrade other portions of the Mackinac Island electrical delivery systems, both on the Island and in St. Ignace.