EX-99.1


		ELECTRIC RATE CASE U-15645*

On November 14, 2008, Consumers Energy filed an application with the Michigan Public Service Commission seeking an increase in its electric generation and distribution rates based on a 2009 test year. The request seeks authority to recover new investment in system reliability, environmental compliance and technology enhancements. These investments are part of the Company’s Growing Forward strategy which calls for investing more than $6 billion in utility operations over the next five years. The proposed overall rate of return is based on an 11.0% authorized return on equity. This is the first Consumers Energy rate case to be filed under the regulatory framework established in new energy laws. If approved, the request would increase customer rates by an average of 6%. The $214 million request is detailed below.


Item	$ Millions		Explanation
1. O&M	$	50	General inflation: $21 System reliability, uncollectibles, environmental compliance and technology: $29

2. Rate of Return		17	Higher return on equity (11.00% vs. 10.70%): $11 Other capitalization/costs: $6

3. Rate Base		76	Net Plant (distribution reliability, generation reliability, environmental compliance, technology): $56 Working Capital: $20

4. Book Depreciation		14	Related to new investment

5. Property Taxes		9	Related to new investment

6. Gross Margin		43	Primarily due to customer mix and sales decline, 2009 sales forecast 36.2 GWh

7. Other		5	General Taxes, Income Taxes, AFUDC, and Other


8. Total	$	214


Ratemaking	Existing			As Filed						After-Tax
Capital Structure %	(U-15245)			Percent of Total			Annual Cost			Weighted Costs
Long Term Debt		41.55	%		44.51	%		5.85	%		2.60	%
Short Term Debt		0.81			0.77			5.99			0.05
Preferred Stock		0.50			0.47			4.46			0.02
Common Equity		41.75			40.88			11.00			4.50
Deferred FIT		14.65			12.73			0.00			0.00
JDITC/Other		0.74			0.64						0.05

		100.00	%		100.00	%					7.22	%⁽¹⁾


Rate Base and Return	Existing
Percentage	(U-15245)			As Filed
Rate Base	$5.53 billion			$6.27 billion
Return on Rate Base		6.93	%		7.22	%
Return on Equity		10.70	%		11.00	%


⁽¹⁾		Equivalent to 10.12% pre-tax basis.

*		Electric Rate Case U-15645 can be accessed at the Michigan Public Service Commission’s website.

		http://efile.mpsc.cis.state.mi.us/efile/electric.html


		GAS RATE CASE U-15506*

On September 12, 2008, MPSC Staff filed its position on Consumers Energy’s request for an increase in its gas delivery and transportation rates. Staff is recommending a $36 million rate increase to earn an authorized return on equity of 10.45%. Staff deferred a review of the gas energy efficiency program as well as the Company’s request for a revenue decoupling mechanism for the residential rate class, pending the outcome of the energy legislation before the Michigan legislature. If the Staff’s recommended increase was adopted by the MPSC, it would add about $1.00 per month, or about 0.9%, to the typical residential customer’s average monthly bill. The $36 million revenue deficiency is detailed below.


							MPSC
				MPSC			Staff
Category	Company			Staff			B/(W)			Remarks
	(mils)			(mils)			(mils)			(mils)
1. O&M	$	28		$	18			($10	)	Deferred energy efficiency program: ($9) Other: ($1)

2. Rate of Return		25			11			(14	)	ROE 10.45% vs. 11.0%: ($8) Capital structure: ($3) Other: ($3)

3. Rate Base		38			30			(8	)	Working capital: ($7) Other: ($1)
4. Book Depreciation		19			19
5. Gross Margin		18			1			(17	)	Higher throughput 305 Bcf vs. 299 Bcf: ($10) Miscellaneous revenues: ($7)

6. Taxes & Other		13			7			(6	)	Lower income taxes
7. U-15190 Settlement		(50	)		(50	)		0		U-14547 used as base since settlement agreement did not identify specific cost of service items


8. Total Base Rate Increase	$	91		$	36			($55	)


Ratemaking	Existing			Consumers Filing			MPSC
Capital Structure	(U-14547) ⁽¹⁾			Percent of Total			Staff Filing
Long Term Debt		46.77	%		42.06	%		42.71	%
Short Term Debt		1.04			0.68			0.66
Preferred Stock		0.51			0 .51			0.49
Common Equity		35.06			42.88			41.78
Deferred FIT		15.09			12.42			12.94
JDITC/Other		1.53			1.45			1.42

		100.00	%		100.00	%		100.00	%


Rate Base and Return	Existing			Consumers
Percentage	(U-14547) ) ⁽¹⁾			Filing			MPSC Staff
Rate Base	$2.25 billion			$2.58 billion			$2.53 billion
Return on Rate Base		6.69	%		7.40	%		6.99	%
Return on Equity		11.00	%		11.00	%		10.45	%

GAS RATE CASE SCHEDULE — UPDATED AS OF OCTOBER 23, 2008


Initial Briefs		November 18, 2008
Reply Briefs		December 9, 2008
PFD Target Date		TBD
Exceptions		TBD
Replies to Exceptions		TBD


⁽¹⁾		Amounts are those authorized in the Company’s fully litigated Case U-14547 prior to the rates established in U-15190. The order in Case No. U-15190 was the result of a partial settlement agreement. The Settlement Agreement did not identify specific cost of service items.

*		Gas Rate Case U-15506 can be accessed at the Michigan Public Service Commission’s website.

		http://efile.mpsc.cis.state.mi.us/efile/gas.html