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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 5, 1999
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MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
MICHIGAN 33-37977 38-2726166
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
100 PROGRESS PLACE, MIDLAND, MICHIGAN 48640
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (517) 839-6000
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ITEM 5. OTHER EVENT
Recent Developments with Respect to the Settlement of Outstanding PPA Related
Issues with Consumers Energy Company (Consumers)
As discussed in Part I, Item 1, Section G, "Regulation - MPSC and Other
Proceedings Relating to Capacity and Energy Charges," Part II, Item 7,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - Outlook - Energy Payments Under the PPA" and Note 8 - Contingencies
to the Consolidated Financial Statements in the Annual Report on Form 10-K of
Midland Cogeneration Venture Limited Partnership ("MCV") for the fiscal year
ended December 31, 1998, MCV and Consumers had unresolved issues under the Power
Purchase Agreement ("PPA"). On April 5, 1999, MCV and Consumers entered into a
settlement agreement ("Settlement Agreement"), effective January 1, 1999, which
resolves all pending disputed issues identified in the above-referenced sections
of MCV's 10-K including the Jurisdictional Issue, the off-peak cap issue,
issues associated with the 325 MW Settlement Order and the 1998 PSCR rate
freeze. MCV recognized a one-time net $6.4 million in operating revenues in the
first quarter of 1999 based upon the resolution of these issues. On an ongoing
basis, the Settlement Agreement is not expected to materially affect MCV's
earnings and cash flow in future years
On April 5, 1999, MCV and Consumers also entered into a Summer Peaking Call
Option Agreement for the sale of 110 MW of electricity from the MCV facility in
addition to the 1240 MW under the PPA. The initial term of this agreement runs
from April 1, 1999 to December 31, 2001, with the option of being extended to
December 31, 2007. The option months during each of the contract years in which
energy may be delivered are June through September.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
MIDLAND COGENERATION VENTURE
LIMITED PARTNERSHIP
Dated: April 12, 1999 By /s/ James M. Rajewski
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James M. Rajewski
Vice President and Controller
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