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AGREEMENT'FOR ELECTRIC SERVICE

:

ICONSUMERS PCWER COMPANY /THE COW CHEMICAL COMPANY I

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June, 1978: -,

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AGREEMENT FOR ELECTRIC SERVICE' c

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AGREEMENT, made this En day of June,'1978, between CDNSUMERS

POWER COMPANY '(hereinafter called " Consumers Pcwer"), a Michigan corpora-!

tion having its principal office at Jackson, Mich.fgan, and THE DOW .

CHEMICAL COMPANY .(hereinafter called "Dcw"), a Delaware corporation.

auttert:ed to do business in the State of Michigan, having its principal

office therein at Midland, Michigan,'as folicws:

1. Consumers Power agrees to supply, and Ocw agrees to.

purchase hereunder, electric energy as auxiliary or standby to Dow's,

electric generating facilities located at Dow's chemical plant complex,.

including all contiguous administrative and other facilities, (herein-

(. after called "Dow's-Midland Ccmplex") located in Sections 19,20;21,

22, 23, 24, 25, 26, 27, 28, 29, 35 and 36 in the City of Midland and.

"Midland Township, and Sections 1, 2 and 11 in Ingersoll Township, all in'

Midland County, Michigan, Sections 31 and 32 in Williams Townshfp, Say'

County, Michigan, and Sections 5, 6, 7 and 8 in Tittabawassee Tcwnship,

' Saginaw County, Michigan, together with any other land that Dcw may in -,

|the future acquire that is contiguous to any part of the above-described

| land, for the operation of Dow's Midland Complex and for the operationL'

of. all of' Dew's wells served by Ocw's existing Midland Complex primary

electric distribution system and shown on the attached Exhibit A, includ-'

Ling modernization and replacements thereof.

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Agreem:nt for Electric Scrvice .

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2. The electric energy to be supplied hereunder shall be

alternating current, three phase, .60 hert:, at approximately 13,300 I~

volts. Delivery shall be made at mutually agreeable points at Censumers

-Power owned 138,000-13,800 volt Dow West and Dow North substations at

Dow's Midland Complex. Said energy shall be metered at each of said-

substations and totalized for billing purposes by meters and metering~

equipment furnished, installed and maintained by Ccnsumers Pcwer.

Consumers Power shall make periodic tests of its meters and keep them

.

within acceptable standards of accuracy. Dow shall furnish, withouti

cost to Consumers Power, a suitable site or sites on its premises for

Cor.sumers' Power's 138,000-13,800 volt substatien equipment and trans-

mission lines. If, during the term hereof, Dow's use of its premises'

i makes necessary the relocation of said facilities, from the site ort .

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sites so furnished, to another site or sites on its premises, Consumers.

Power shall relocate the same at Ocw's request, and Dow shall reimburse4

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Co..Jumers Pcwer for the cost thereby incurred.-

Consumers Power, its . agents and employees, shall have full

right and authority of ingress and egress at all times on and across _|

Dow's premises for the purpose of constructing, operating, maintaining, |!

replacing, repairing, movi.ng and removing its said facilities. Dow's_

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use of its premises shall not unreasonably interfere with Consumers

' Power's said right of ingress and egress. Ocw shall afford adequate

protection'to avoid damage to or tampering or interference with Censumers

Power's said substation equipment and transmission lines, meters and

metering equipment.-'

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Agreement for Electric Service -' '''-

Page 3,

3. Dowshallpayforsuchenergyin~accordancewithConsumers,

Power's Rate "F". By reason of the character of the proposed use of

service, it is also subject to the provisions of Rule 12(i) - Auxiliar/

or Standby Service, of Consumers Power's Standard Electric Rules and

Regulations. A copy of said Rate and Sheet No. 5.C6 and Sheet No. 5.07

containing said Rule are attached hereto and made a part hereof as-

Exhibit B.. Said service shall also be subject to such future revisions

.and amendments to said Rate or Rule, er both, supplements hereto, or

substitutes therefor.as are hereafter filed with and approved by the

Michigan Public Service Ccmmission. Subject to Censumers Pcwer's Standard-

Electric Rules and Regulations, Ocw may, by notice given to Censumers

Power not less than' thirty (30) days prior to the comencement of the-

initial term hereof, elect to take service in accordance with any other: (\ -

Consumers Power rate schedule approved by the Michigan Public Ser/ ice

Canmission and-available by its terms to custcmers of Ocw's class.~

After the etzmencement of the original term hereof, Dow shall have the,

right from time to time to select a different Consumers Power rate

schedule approved by the Michigan Public Service Commission, in accordance

with and upon the conditions permitted by the rules and regulations of.

said Ccanission. The parties recognize.that when Consumers Pcwer is

unable to serve process steam to Ocw pursuant to the General Agreement

between the parties executed concurrently herewith (the " General Agreement'')'

becausu Units'l and 2 of Consumers Pcwer's Midland Plant are both out of

service, Ocw's electric demand may' be reduced if (i) Ocw is forced to

j- shut down processes for lack of process steam or '(11) Ocw generatas~

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Agreement for Electric Service ~..'

Page 4,

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electricity for use in its Midland Complex incidental to its production,

of process steam in its own facilities to replace the process steam

normally supplied from Censumers Power's Midland Plant. Accordingly,

Consumers Power shall use its best efforts to obtain authorization frem

'the Michigan Public Service Comnission to bill Dow on the basis of

actual electric dema'nd' during periods that both Units 1 and 2 are cut of

service, resulting in the cccurrence of (f) er (ii) above.

4. It is further agreed that:.

(a) Dow's initial contract demand for such service shall

be 174,000 kilewatts. Before the connencement of the initial term of

this Agreement, Ocw may, by written notice to Consumers Pcwer given on.

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or before March 1,1981, increase or decrease its initial contract(~

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demand by no more than 25,000 kilowatts frem such contract demand;-

provided, however, that if Consumers Power shall at any time give Dow .<

written notice that the date of commencement of such initial term is

expected to be a date other than March 1,1982, then Ocw shall give' such

notice, if any, cne year prior to such other date' or if Consumers Power's-

written notice is given within a period of one_ year or less prior to the

date of cennencement of such initial term, then Ocw's written notice, if -

any, shall be given within thirty (30) days after Consumers Power's

written notice.

(b) Such service is for the sole use of Dow, for the purposes

aforesaid, and shall~ not be transmitted elsewhere or shared er resold.

Said energy may be used by Dow as auxiliary to electric energy generated

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Agreement'for Electric Service. .'' ;

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by its own generating facilities. _ Censumers Pcwer agrees to permit Dow,

when.Dow so desires, to operate Dow's electric generating facilities in E

parallel with Consumers Pcwer's electric systam; provided, however, that

'such parallel operation 'shall at no time create a. Nazard or disturb,

-impair or interfere with Consumers Power's service to other customers.

Dow further agrees that the electric energy furnished by Consumers Power

shall not be utilized in such manner as to cause any objectionable

inductive interference in conmunication circuits..

(c) Such service shall be governed by Consumers Power's

Standard Electric Rules and Regulations filed with the Michigan Public~

Service Commission, and such future revisions and amendments thereof,

supplements thereto, or substitutes therefor as may be filed with and '

:( . approved .by the Michigan Public Service Comission during the term of

this Agreement.

(d) Except as to the demand and minimum charges payable by

Dow, prescribed in the then applicable Rate Schedule and Rules, neither

party shall be liable to the' other for damages for any act, cmission or

circumstance occasioned by or in consequence of any act. of God, labor-.

disturbance, act of the public enemy, war, insurrection, riot, fire,

stonn or flood, explosion, breakage or accident to machinery or equip- -

- ment, or by any.other cause or causes beyond such party's control,

including any curtailment, order, regulation or restriction impcsed by

governmental, military or lawfully established civilian authorities, or

by the making of necessary repairs 'upen the property or equip =ent of

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either party hereto; provided,' however, that Consumers Pcwer's responsi--

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bility. for interruptions in the service, phase failure or reversal, or.

variations in the service characteristics shall be as provided in said

Standard Electric Rules and Regulations.

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(e) This Agreement will become effective on the Commercial|

1.

l. Steam Operation Data as defined under the General Agreement. It is. 1

presently estimated by Consumers Power that said Commercial Steam

(Operation Date will occur in March,1982.4

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(f)' The initial term of this Agreement will continue until.

January 1,1985 or for one (1) year, whichever period is longer, and

fran year. to year thereafter until terminated by mutual consent, or-

teminated at the expiration of any contract year by either party giving1

- the other at least one (1) year's written notice of its desire to

teminate this Agreement at the expiration cf any contract year, which,

notice may be given at any. time.

-(g) Due to the size of Dow's load and the complex nature of

.its operation as'well as the nature and size of Censumers Pcwer's invest- j

ment to serve Dow hereunder, Dow shall pay Consumers Power a charge upon

Ocw's temination of this Agreement or upon reduction of Dow's contract ,I

demand, if such-temination or reduction shall occur at any time fromj

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the signing-of this Agreement until five (5) years after the Ccmmercial'

'Staam Operation Date. .In the event of such temination, the charge.

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ishall consist of the original cost of Consumers Power's substation |

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- Agreem:nt'for Electric Service -

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Page 7,

facilities installed to serve Dow hereunder, less depreciation, plus the4 .

cost of removing said f.acilities, less salvage value. In the event of N

such reduction (s) of Dow's centract demand hereunder,. the charge shall.

!consist of the difference between the depreciated original cost of the.

substation facilitiet installed'to serve Ocw hereunder and the estimated

depreciated criginal cost of the substation capacity required to serve

Dow at the-reduced contract deman'd, had such capacity been installed at

the same time or times as the substation facilities were actually;'

installed, less salvage value. " Salvage value," as.used herein, shall

mean the amcunt received for property retired, less any expenses incurred

in connection with the sale er in preparing the property for sale; or,''

if retained for use by Censumers Power, the depreciated criginal ccst of.

the property retained less any expenses'in preparing the prcperty for

service elsewhere and incurred in placing it in service within the

Midland Ccmplex.,

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(h) The failure of either party to insist, in any one instance .

or more, upon the performance of any cf the terms or conditions of this

Agreement, or to exercise'any right or privilege herein conferred, shall --J

not be ' construed as thereafter waiving any such terms, c nditions,

rights or privileges but the same shall continue and remain in full

force and effect.~

(i) This Agreement shall not be transferred by Dow or other-

wise alienated without Censumers Pcwer's written consent. Subject to

the preceding sentence, this Agreement inures to and binds the successors,

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Agreement for-Electric Service ~,, . ._,

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and assigns of the respective parties hereto. This Agreement will also3cancel and supersede, as of the date of cemencement of the initial term

hereof, the contract between the parties hereto ' dated December 30, 1969,

for the purchase of electric energy at the above location, including any

revisions and amendments thereof, supplements thereto, and. substitutiens.

therefor agreed to between the parties rice to the date of cemencement

of the initial tem hereof.

IN WITNESS WHEREOF, the parties hereto have executed this-

Agreement in duplicate by their duly authori:ed representatives effec-

tive as of the day and year first above written.

CONSUMERSPOWERCAMPANY TiiE DOW CHEMICAL COMP Y --*

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A7 |-409ic..u..' REVISION DATE: -/-3o-73 '

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M.P.S.C. No. 7 - Electric Sixteenth Revised Sheet No. !6.00 .i. . .Consumers Power Company Cancet!!ng Fifteenth Revised Sheet No.16.00**

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(To restse Monthly R.ste. Fuel Ost Adiustmentend Detsyed Pzvment C'sartel

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C0501ERCIAL AND ENDUSTRIALPRDtARY HIGH LOAD FACTOR SERVICE f~ ~

(OFTIONAL CONTRACT RATE *F'')

Avedebilityt.

Open to say customar desir:ss primary voltage sorrice for commercal or indust =21 use where the binins. demand is 100 kW or more. This rate is not'avadante for stnetfighths service or for resale purposes..

Nature of Sernce: Refer to .hte Instrug::en Sud:t:n 3 5

Alterna ms cumut. 60 hertz, nasis phase, or three ;hase, ce ; articular nature of the voltass in each caseto be determmed by the Company.

Monthly Racet Refer to Rate Instrust:on Sulletin 17 3

Capacity Charge:.

Jy.?J per kW for the t'.rst 2,000 kW of billbs de=and,J4.40 per kW for the next 13,000 kW of biHing demand,

' 3J.30 per kW for 211over 20,000 kW of biHing ds and.

Enessy Qarge:

1.704 per kWh for att kWh constuned dur:nt the on-peaic per:cd,1.304 per kWh for si! kWh consumed .turtng the off peax per.od.

.

Fual Cost Adjustment and hrehased lower CJsf dd/ustment! Sefer !c Rate lastIuction 3ulletin !3 4,

% This rete is subject to the Ompany's Fuel Ost Adiurrment and hrchased ?cwer Qst Adiurrmentassetforth in Rule 16 of the Qmptny's Jtandard Rulesand Reg:dat:ans.

.

Tax Adjustment:

(a) BiEs shall be increased within the E=its of political subdivisions which levy special taxes, Ecense fees or-c

rentals stainst de Compa.'.y's progeny, or its operation,' or the produe::en and/or sale of ei:ctr:'

energy, to offset such specal charges and thereby ;revent other customers from be:ng compe!!ed toshare such Iccal increases.

(b) Bills shall be increased to effset any new or ine: eased sp'ecf!c tax or excise imposed by any*

governmental authcrity upon the Company's generation or sale of electncae energy._

Minimum Charge: g.

The capacity chatte inc!uded in the rate.

Defered Payment Charset

A delayed payment charge of ';"4 of the total net bill sha!! be added to any bd1 which is not paid on orbefore the due riste shown thereon. The due date sh1d be 21 dayr following the date of mading.

(Continued en Sheet No.16.01)'tay t!.1976 Effectives for efec:rts wtwv rendered onIssues: .

and atter Apr4 L J.19*6

!asued unser suthority at order of theharean Puotic Serme CJmemsmon dated .Arrd II,1976 na Case Ud44o and Cane U.4a:1

tssued ey A. H. Aymond.Charman at the Board at Directors,Jschaon Sim;Assan

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ymM.P.S.C. No. 7 - Electrm - Ninth Revised Sheet No. I6.0I

~. **Comemners Power Company Cancetitas Eighth Revtsed Sheet No. t 6.01.

(To resur Adlustment for Off Prek Hour Operettant |

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RATE "F" |(Continded frovi Sheet No.16.00) - -

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3ining Dessaad: Refer to Rate Instruction Sulletins 7 2 and I:.:

The ballas demand shan be the kilowatts (kW) supplied dunng the 15-minute period of maximum use in thebGing month adjusted for off peak hour operacon as specified below, but not less than 60% of the hist.estbaning demand of the preceding 11 months.norless than 100 kW. ,

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Then a customer guarancesein wntag a bGing demand of 2.500 kW or more for a matmum term of :welve |'consecutzve months, the hdung demand each monta dunas the pened of such guarantee shad be the average

of the four maximum weexly demanda for such month (the genod after the first 11 days of each monthbems :candered to be the fouzta week)t prended that no bd! Ins demand shad be less than 60% of thehighest bGing demand of the preceding il mands, and in no case !ssa than 2.500 kW.

IAdjussment for Off Peak Hour Operation: Refer to Rate Instruction SuHenn 7 2

*

Demands casted dunas off-peak hours dessnated by the Company in the Company's "7cliedule ofOn-/eeir JAd 0//-Peak Hour Proversons" shad be disregarned ;rovided the bdung demand shad not be!ses than JJ f/J5 of de greatest demand created in such off peak hours nor les than 100 kW.

Adi-r==ar for Power Factor: Refer to Rate Instruccica Budetin J 7~

This rate nquires a deter inatfort of de average power factor maintained by the customer dunns the bGing.

penod. Such average power factor win be determined througa meter:ng of laggi::s kalorathours andkilowatthours danns the bdIIns pened. The calculated ratio of tagg:ng kdovarhours to kdowatthours willthen be :caverted to the avenge power factor for the bdI!as ;ened by :sms de apprognate : caver =on

. factor. Whenever the averste ;ower factor dur=g the bining ;ened is above .399 or below .300, ther

- capacity charge wd1 be adjusted as fonows:

(a) 'If the average power factor during de bGing period is .900 or higher. the capacity charge will be 1

reduced by 2%. This endit shall not in say case be used to reduce the presc=hed =unimum charge or |the capacity charge when based upon 60% of the highest biHing' demand of the preceding 11 months. j

d(b) If the aversas power factor durms the biHIng period is less dan .300, the capacity charge wt2 he ,

increased by the rano that .300 bears to the customer's average power factor dunns the bduas ;ened.

Terra and Form of Contract: Refer to Rate Inscruction Sulletin 13 2 |

|Mimmum term of one year on wntten contract.

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(Continued on Sheet No.16.0 1.lasmeet Mav st.1974 Effectives For etectric sernce renuered on

and after Apri IJ.1974

tsuued ufhier authortti af order of tfleMicassa haatse Sarnes Commmason dated

( Aard 10. te76 in Came U444o sad Csas Udett

tasued byt A.II. Aymond. Chairman of ene Soard r.( Directors.:

JackJOS. Micneg2A. .

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Comeumers Power Company - Canceding Third Revised Sheet No.16.02(To restre Rzdes and ReguL1rionr1

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.. RAT.E T e.

* *(Consinued from Sheet No.16.0!),

Rales and Regulations: Lier tu Rate Instruction Staletins 4 3. 4.4 and 4 5,

* Semco governed by Company's Standard Rules and Regulations.

*

Where semco is supplied at a nominal voltage of 25,000 volts or tees, the customer shall furnish.instad and; maintain au necessary transforming, concrotung and protective equzpment.!

Where the Company elsets to measure the service at a nominal voltage above 15,000 volts, :% will bej deducted, for billing purposes, from the demand and energy =sasurements thus made.1 -

'

! Where the Company elects to measure the service at a nominal voltage of less than 2,400 volts,3% will beadded for bdliag purposes, to the demand and energy nessurements thus made.

Where service is supplied at a nonunal voltage of more than 25,000 volts and the customer provides a!!ofthe necessary transforming, contrailing and protect:ye equipment for til of the service, there shad be

. deducted f:om the capacity charge herein provided for, the fo#owing montAly credir per kW (after the 1%! deduction or the 3% addition refetrtd to above) for the maximum mtegrated demand crested durms the] month or for the bd!Ing demand, whichever is greater.Ior there customerr wnere p=rt of their food ir servedi through curramemwned eqtucment, the credit shsU be based on *ne maz: mum integrated demand (alter' the 2% deduction or the 3% addit:ca referred to above) created durms the month through such

customer owned equipment..

(a) Supply Yolarge 46,000 P'olts orf.ess:* -

.

L60 per kW for the firrt !J00 kW,3.23 per kW for the next 1,300 kW,*

L10 per kW for su over 3,000 kW. .

(b) Supply Yeltage One 44,000 Yottst '

3.60 per kW for the firrt 3,000 kW, -

L:0 per kW for the next 10,000 kW,L10 per kW for su over 13,000 kW. .

These aedits shaQ not be used to reduce the prescrthed maimum chartes included in the rere.

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tasued >tay * t . t 97 6 r.ttective: For enestrie wrwce renvereu evi- and after Aptd 1J.1975

!ssued under sutacrity of order o* tSehfiegna Pseuc Serwe Commmawn datedAert 4. ISTS in Case U-444o and Case U.441:

tasued ey: A. H. Aymond.Chastman at tne Soard at Directors.J acmaon. M*Cassaa

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STANDARD RUT ** .GD REGULATIONS. - -

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! 12. hvMa==8-= of 3ases (t" ~<---.3) '' -

! .- (O A=H-y or Stand.By Serms s..ftr :: M:s I.".n:::::::: h!!.ca 9 0.10 0,1

; *Amalissy* servies is dansed as das elecete servtce which suppirmana r.nethe sowus of pow r supply 6ere |e;

beeg throw.over arraae='==ans either eiacsual er meca=aeal which enmole ether or hch sources of suppiy. to be unlised for d or any part of the cuscomer's total regaramancs. '|2

!-. "Samed4y* saanee is danned as das sarnce wasch is capable of being used la ;! ace of the sensraHy used source'.

of power sappiy, hre bass no acenal use of the ".cand-by* sarnce assage la emergency.4

4' h wee parconse an or procacaily aH of daar energy requaremsats frain the Company, but was insmag====sdag espangassos for use only in case of faa!ure of the Campany's tarden. or wno u.se a relaavely sman1

4 amemas of soorgy generated as a by-product of manu!:crunas or testag processes. *d r.oc h coandered to be!

l aang the C.ampany's service for other suaa!Iary or stand.cy purposes.*

<

j Whee a cassamer desires to use the Csepany's facilities as an aussliary or stand 4y to prumary or secondsry serv.{ los appiled, or capable of beeig suppiled host another source, the Company only oliars .a Ceneral fecondaryj 3sreise Raan "C," or its F:tmary Semco Rates "D." and "T* for such service.

)- h Wes== of the amove rates to ana:Hary or smad.by semes shan h subiece to the foHowing special condi.*

| tlassa

j (1) Comaracts for such sarnce shan k - =ahi on a spec:al conosce form for wan== term of one year.

00 A *comence danand" shan be faitinHy -aau.d by mutual agreement beween de Company sad th cus.~

temer and sated la the service comesen. The Qmpany shall cot be required to supply power to the customer*

] !a esses of the concrect damande however, the Campany wtll, at the wrsues request of 6e cusemer mr.dei ac !anse thirty days la advance, pa:na sa increase sa b conizact demand provuiad tie Conspany has pwer

eenslable.2 ;-

(3) No customer sh:H h peraatted to effect a reducuos in his contract dammad by recomencting for the same --

; service, unless a bona Sde reducteam in !and has occurred. )1 (4) h biH!ag demand provisions in T.aeas "C." "D" and T* than be modi &d to provide thar de hintag de-1

===d shan not be ! ass saa 50% of b highest hi1 Hag d a==A of 6e precedfag 11 months, or 60% of dei emmenet demand, wnichever is greater, and ;n so case fans than 25 kW en Race "C" 100 kW on Rate "D *

or 100 kW on Race "F.'" W hans dammad provtsions of Rates "D" and "7" shah h furser soci&d to,

] pionde that the bintag demand shan in =a case W ! ass thaa 50% of 6 acnaal maximum lalovoltampers(kVA) demand. .

| When b bGag demands under Rates "D" and "T" are determined by say of the modhaaae sated above. -

; the capacity charge credit based on avernse power !setor shan not apply.,

4

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.

ICananued on Sheet No. 3.07)

Issusds May 5,1970 F.!fecuve: eor elce: rte servtce rendered enIssued under authoney of order el de and after Oct:ber 41:59'

Michis:s Fuhlic Service Commmion datedAprd 20,19"O |a C.se U.013. j

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M.P.S.C. No. 7 - Electric Ninth Revised Sheet No. f.07 -Coneamers Power Company Canceillas E!shth Rmsed Sheet No. 5.07(To reme R: des I:M and I:fil)

.

STANDARD RULEX AND REGULATIONS . . e<(Constaned from Sheet No. 5.06)

12. Appdisasjon of Rates:(Cantd)-s

(i) ~ Anzallary oe Standby Semce: (Contd) Refer to Rate lastruction Su!Rt.as 9-1 and iJ-2 e

(5) For the protection of the Campany's facdities, the customer may be required to furnish. instal! andmaintasa a load !!auting device approved by and under the sole centrol of the Company.

(D Temporary Service: Ref:: :: P.st: ! .st act::n 3:1:rt:ss 2 3. J-6 and |J.J

Castomers desiring seneral secondary semco for a short time only, such as for conscuction joi:s.travviing shows, outdoor er tndoor enterfamments or exhibitions, etc sha!I ;ay tne charge ;ce cu.sto=:rper :nonth provided in the General Secondary Semce Rate "3,'' previded. however, that if such se.-.:eextenda for a genod in excess of six months the customer may qualify for other of the Campany'savaalaoleraces.-

In *Mit'an mch customer shall pay Me"*n sad removal charges as fodows:

(1) Where 1 0/040 voit smste phase semce is desired and such service is avaslable at ce dte at the c=etemporary semca is dented, the charge for installation and removal of temporary, s=sie paus,.

three wire,1 0/040 volt service shall be:

(a) For temporary over: sad service J 50.00,

.

(b) For temporary underground service, dunas ce pened from April l toDecember 14 3 75.00, ,

' -(c) For temporary underground semce, during de period from Denmber !!

to March 3I J.'00.00

(2) Where 1:0/240 volt single phase se:vicz is not avadable at de site, or if other than 100/040 rett -jsingle phass service is desired, de charge for installation and removal shall be based on the :st - |thereof. |

The customer may be required to depent with the Company an amount to cover the cost ofinstallissand removing these temporary fac: lit:es plus the estimated cost of service under ce terms of the rate setforth above. Meters may be read daaly ar.d the deposit modified as the energy used may jus *:fy sa:hmodificat2cas. *

. _

*.

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(Continued on Sheet No. f.071) ||aanses: May !!.1974 Effectives For electric serme renaered on

ans afsef Agru 13. tete. Issense undet suthonry of orest of the |

Stkasvaa hatse Sernce CJmmmon date11 |

,Aard I:.1916 sa Cear U4:4c and Cass U.4431

lIssuse syt A.H. Aymond.Chairmsa or the Soare or Cirectors, j

Jacmace, atacnissa '

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pmrrrn COIUlESPONDENCE.,

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g li PanerLOJL \k/ C0mD2ily

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oeneral officss: 212 West Michigan Avenue, Jackson, Michigan 49201. Area Code 517 7881368g

June 26, 1978

fp~ s-

DOCKET NOS. 50-329 .o '2.50-330 95"'*%

6; 3082 8 9$>$"- -

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U.S. Nuclear Regulatory Com=ission /Washington, DC 20555 b /

Gentlemen:

In remanding the Midland construction pemit proceedings to. the NRC, the Courtof Appeals directed the NRC to consider any changed circu= stances regardingThe Dow Chemical Company's need for process steam from the Midland Nuclear Plantand the intended continued operation of Dow's fossil-fuel F' 2 rating facilities.Aeschliman v NRC, 547 F 2d 622, 632 (DC Cir 1976). The Court of Appeals decisionwas reversed in Ver=ont Yankee Nuclear Power Corn v Natural Resources DefenseCouncil, 98 S Ct 1197 (1978). Thereafter, the Co= mission requested the partiesin this proceeding to state chef,r views as to what issues, if any, remain forfurther NRC consideration in light of the Supreme Court's decision, and the '

parties have done so. That matter is before the Co==ission for decision. Ac- -1cordingly, the Cccmission should be aware that Consumers Power Co=pany and TheDow Chemical Company have executed renegotiated contracts respecting the IEdland

ifacility, covering the supply of process steam and electricity ' to Dow. The re- !

negotiated contracts are in the form of a General Agreement and an Agreement for lElectric Service, both dated June 21, 1978. Copies of these agreements are en-|closed for your infor=ation.'

:

|

The enclosed copies of the General Agreement dq not include Section 4.C of that|Agreement, which specifies the rates and charges for process steam to be supplied '

to Dow. Dow regards the provisions of that Section as confidential commercial in-formation. Section 4.C will be filed with the Commission separately with e. requestthat it be exempted from public disclosure.

|

|ours very truly,

Q'}s;t' yA .' t\

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-# JLB/pb

kCIAetachedServicetistw

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SSERVIC LIST '

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, '? Michael'C. Farrar,; Chairman-*

_ JAtomic Safety?and Licensin8 ' Atomic Saf'ety;and Licens'ing.Bosrd PanelU.S. NucleariRegulatory Commission

. : Appeal 1Boardi '. . . ..

; .'~ ' . U. S. tNuclear . Regulatory: Commiasion -. Washington, DC; 20555u cWWashington -(DC < 20555 : f

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| Richard K. Hoefling. Esq.4

'

-Counsel to NRC StaffDr.:W., Reed; Johnson >..

[ Atomic Safetyland Licensingi U.S. Nuclear Regulatory Commission'' Washington, DC ~.20555'

.

:, '..!AppealBoard|.

U.S. Nuclear Regulatory Commission:, ,

..

Myron'M. Cherry, Esq- Washington,'DCg20555

'

1 IBM Plaza-[~'

~

..: . Salzman, : Esq'

; Richard.S.7. Chicago,;IL 60611-

' Atomic 'Safaty' and : Licensing'. Ms Mary,Sinclairn + Appeal Board;.

. .. 5711 Summerset Street1

U.S. Nuclear-Regulatory Commission: 1

v .

20555. Midland,"MI 48640t Washington, DC

.

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(Marsha11'E. Miller, Chairman Harold F. Reis,-Esq.I _ 2

'A'tomic? Safety and Licensing' Board. . Robert Lowenstein, Esq.. . ._ .

. ,

,

Lowenstein, Newman, Reis & Axelrad=U.S. Nuclear < Regulatory Commission :1025 Connecticut. Avenue[ 1Washingt'o6 DC- 20555- *

-Washington, DC~ 20036i

.. . - .

5 (Dr.LJ.- Vene Leeds, Jr-. . L. F. Nute, Esq

.'

L Atomic Safetycand Licensing Board0 10807 Atwell The Dow Chemical Company ::

P.O. Box 271- Houston,' Texa's |77096 'c <

Midland, MI 48640. . . , _

:Dr.'Emmeth:A. Luebke'.

. 'Mr. Steve Gadler ?.

-AtomiciSafety and Licensing Board 2120 Carter Avenue f.

1

L U.S.-Nuclear Reguistory Commission St. Paul, T 551'08. -= Washington',iDC 20555 1.,

C .Ivan1W.; Smith,cEsq. . Michael I. Miller, Esq-1' fAtomiciSafety and Licensing Board Isham, Lincoln--& Beale .i

~

: U.S . : Nuclear -Regulatory | Commission - One'First. National Plaza, Suite 4200 -

: Washington,1.DC1 20555.: -Chic'ago, IL 60603

.Mrh Les'ter Kornblith, Jr - :Norton Hatlie,-Esq*

' AtomictSafety:and Lidnsing' Board Attorney at tw4

U.S.; Nucle'ar Regulatory Commission P.O.1BoxJ103-i: ,/ iWashington,iDC:'20555 Navarre,-MN 55392-~

, -.

' ~

;Dr.E7'rederick.fP[Cowan. _. Gregory T. Taylor.

f6152 N.fverde Trail,uApt. B-125| : Assistant. Attorney-General-_

..

,r w: - tBoca;Raton,"FLf33433. < Environmental Protection Division_

- . f ,_ . - ' 5720 Law Building.f ; Atomie' Safety?and Licensing Appeal; Pat<

g | |, sing, MIc 48913 gitE,', |U.S.tNucleari. Regulatory ComnissicaL f "

' JWashington,iDC 20555 m 4,2,. - L~| *

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,h>' |Docketiingland Service;Section: 2d.g2.S:DTB

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C . .. , ,;0fficeiof;the Secretary: - -.

- ePS LUjS.jNucleariRegulatoryjCommissio i

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sWashington;[DCd20555? ' f.id-[Y _ !.

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