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MichCon to Deliver Natural Gas To New Rouge Power Plant Project

11 March 1999

MichCon Wins Contract to Deliver Natural Gas To New Rouge Power Plant Project

    DETROIT, March 10 -- MichCon, the gas distribution subsidiary
of MCN Energy Group Inc. , has reached an agreement to deliver more
than 20 billion cubic feet of natural gas annually to a 710 megawatt power
plant which will serve the Rouge Manufacturing Complex and adjacent customers
in Dearborn, Mich.  Once approved by the Michigan Public Service Commission,
the agreement is expected to bring MichCon more than $60 million in new
revenue over its 22-year term, making the new facility MichCon's largest
customer.
    The power plant, Dearborn Industrial Generation LLC, is a joint-venture
between CMS Energy Corp. (70%) and DTE Energy Services Co. (30%), a subsidiary
of DTE Energy Corp.  It will supply all of the electricity and steam
requirements for the giant 1,100-acre Rouge complex, home of Rouge Steel and
many of Ford Motor Co.'s operations.  The facility will also sell electricity
to wholesale power markets.
    "This is a great win for MichCon," said Stephen E. Ewing, president and
CEO of MichCon.  "Dearborn Industrial Generation's decision to choose MichCon
to deliver their gas demonstrates that they trust our reliable and flexible
service over other delivery options to meet their customers' needs.  This
project showcases how several energy experts can come together to deliver a
superior, cost-competitive energy system."
    The agreement is viewed as a win-win for all parties.  "By utilizing
MichCon's extensive Michigan pipeline and storage system, we gain maximum
flexibility to buy low-cost fuel supplies.  This will allow Dearborn
Industrial Generation to offer competitively-priced, reliable electricity to
serve industrial customers and other end users," said William J. Haener, vice
president of CMS Energy's development activities in North America.
    Production from the cogeneration plant will replace electricity and steam
from a 90-year-old Rouge powerhouse destroyed by an explosion earlier this
year.  Scheduled to begin partial operation in July 1999 with 160 megawatts of
power, the plant is expected to be fully operational in early 2001.
    MichCon is one of the nation's largest natural gas distributors, with 1.2
million Michigan families and businesses relying on MichCon for their energy
needs.  MichCon is a wholly owned subsidiary of MCN Energy Group Inc.   Visit
MichCon's Web site at http://www.michcon.com