SEPTEMBER 25, 1995

Edison Sault to Cap Electric Rates through the Year 2000

In a landmark ruling, the Michigan Public Service Commission has approved Edison Sault Electric Company's request to cap electric rates through at least October 1, 2000. Edison Sault is the first public utility in the state of Michigan to adopt the new price caps mechanism.

The state PSC's order focused on changes occurring in the electric utility industry -- and the need to challenge utilities to become more efficient. Edison Sault is the first utility to accept that challenge.

As a result of the order, Edison Sault's existing rates are capped through at least October 1, 2000, but it may reduce rates below the cap without the time and expense of extensive regulatory hearings. In addition, the utility will not be required to annually provide detailed regulatory reports as to its operations:

Edison Sault's President, William Gregory, praised the PSC's order:

"We are delighted to be the first utility in the state of make the transition to the price caps approach. We will continue to focus on providing low-cost, reliable power to our customers. Our hope is that continued productivity and reduced power costs will lead to even more competitive electric rates -- which should lead to economic growth in the Eastern Upper Peninsula."

Gregory was especially pleased that the PSC's order included mention of the fact that Edison Sault has not requested a rate increase in over a decade and its rates are consistently among the lowest in the state.

Thomas S. Nurnberger, Edison Sault's Chairman, expressed satisfaction at being the first utility to make the transition to price caps mechanism:

"Most utilities would shun a commitment to not raise rates for five years. At Edison Sault, we welcome the challenge. Our Board and management are committed to keeping electric rates at levels which will encourage job growth and economic growth in the Eastern Upper Peninsula. We are gratified by the Commission's order, and we will use it to enhance our ability to respond to market demands and the needs of our customers."

Edison Sault serves approximately 20,500 customers in the eastern portion of Michigan's upper peninsula. Its headquarters are at 725 East Portage Avenue in Sault Ste. Marie.

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