NEWS RELEASE

Sault Ste. Marie, Michigan
October 12, 2001

Lee Baatz, Assistant V.P. – Rates
906-632-5170

Edison Sault Electric Company announces that it has requested authority from the Michigan Public Service Commission (MPSC) to re-implement its Power Supply Cost Recovery (PSCR) clause, effective in January 2002. The PSCR clause allows utilities to pass through to their customers any increases or decreases in the cost of obtaining power supply only, and is not linked to any other expenditures that Edison Sault may be making, such as construction, maintenance programs or payroll dollars.

Edison Sault last applied the PSCR clause in 1995 when it requested the Commission to cap its rates and suspend the PSCR clause. Edison Sault’s rates have remained unchanged since 1996, a period of six years, and are among the lowest in the State of Michigan.

Edison Sault’s proposal, if approved by the MPSC, would increase the bill of a residential customer using 500 kWh by 30 cents a month, or about a 1% increase. Since Edison Sault’s rates were frozen in January 1996, inflation over this six-year period of time has amounted to 15% cumulatively.

The hydro plants in Sault Ste. Marie that are operated by Edison Sault and the U. S. Corp of Engineers provide about 35% to 40% of Edison Sault’s power requirements. The balance of the Company’s power needs is met through power purchases from Wisconsin Electric Power Company of Milwaukee, Wisconsin and Consumers Energy Company of Jackson, Michigan,

"We are pleased that we were able to freeze the rates to our customers for six years," said Donald Sawruk, president of Edison Sault. "However, uncertainties about the amount of water available for hydro generation and fluctuations in outside purchase power costs make it prudent for Edison Sault to now re-implement the PSCR clause. Even with the PSCR clause, Edison Sault’s electric rates will continue to be among the lowest in the State."

To contact Customer Service, send mail to customerserv@edisonsault.com.

Send mail to information@edisonsault.com with questions or comments about this web site.
Last modified: August 16, 2002