Document:

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                                                                   EXHIBIT 10.17

                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

               (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2001)

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                      Page
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<S>      <C>      <C>                                                                     <C>
SECTION 1. TITLE   1............................................................................1

Section 2.  DEFINITIONS.......................................................................  1
         2.01.    "Account"...................................................................  2
         2.02.    "Anniversary Date"..........................................................  2
         2.03.    "Beneficiary"...............................................................  2
         2.04.    "Board of Directors"........................................................  2
         2.05.    "Cash Deferral Account"...................................................... 2
         2.06.    "Code"......................................................................  2
         2.07.    "Committee".................................................................  2
         2.08.    "Company"...................................................................  2
         2.09.    "Covered Compensation"......................................................  3
         2.10.    "Deferral"..................................................................  3
         2.11.    "Deferral Election Agreement"...............................................  3
         2.12.    "Effective Date"............................................................  3
         2.13.    "Eligible Board Member".....................................................  3
         2.14.    "ERISA".....................................................................  3
         2.15.    "In Pay Status".............................................................  3
         2.16.    "Participant"...............................................................  3
         2.17.    "Performance Shares"........................................................  3
         2.18.    "Performance Share Deferral Account"........................................  3
         2.19.    "Plan"......................................................................  4
         2.20.    "Plan Interest Rate"........................................................  4
         2.21.    "Plan Year".................................................................  4
         2.22.    "Post-Retirement Survivor Benefit"..........................................  4
         2.23.    "Pre-Retirement Survivor Benefit"...........................................  4
         2.24.    "Prior Plan"................................................................  4
         2.25.    "Retirement Date"...........................................................  4
         2.26.    "Retirement Income Benefit".................................................  4
         2.27.    "SDBRIP Benefit"............................................................  5
         2.28.    "Spouse"....................................................................  5

SECTION 3. PARTICIPATION......................................................................  5

SECTION 4. TRANSFER OF THE SDBRIP BENEFIT.....................................................  5

SECTION 5. TRANSFER OF PRIOR PLAN BALANCES....................................................  6
         5.01.    Transfer of Prior Plan Balances.............................................  6
         5.02.    Election to Transfer Prior Plan Balance to Performance Share
                  Deferral Account............................................................  6
</TABLE>

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<TABLE>
<S>      <C>      <C>                                                                           <C>

SECTION 6. DEFERRAL OF PERFORMANCE SHARES.....................................................  6
         6.01.    Award of Performance Shares.................................................  6
         6.02.    Establishment of Performance Share Deferral Account.........................  7
         6.03.    Shares Issuable Under the Plan..............................................  7
         6.04.    Capital Adjustments.........................................................  7

SECTION 7.  DEFERRAL OF RETAINER FEE..........................................................  8
         7.01.    Election of Deferral........................................................  8
         7.02.    Establishment of a Cash Deferral Account....................................  8
         7.03.    Deferrals...................................................................  8
         7.04.    Deferrals Limited By Section 6.03...........................................  8

SECTION 8. FUNDING OF BENEFITS................................................................  9
         8.01.    Unfunded Plan...............................................................  9
         8.02.    Interest....................................................................  9
         8.03.    Dividend Equivalents........................................................  9

SECTION 9. CLAIMS PROCEDURE................................................................... 10
         9.01.    Benefit Claims Procedure.................................................... 10
         9.02.    Appeals Procedure........................................................... 10

SECTION 10.  FORM AND TIMING OF PAYMENT....................................................... 11
         10.01.   Normal Retirement Benefit................................................... 11
         10.02.   Change in Payment Option.................................................... 12
         10.03.   Termination Benefit......................................................... 12
         10.04.   Hardship Withdrawal Benefit................................................. 12

SECTION 11. PRE-RETIREMENT SURVIVOR BENEFITS.................................................. 13
         11.01.   Pre-Retirement Survivor Benefit............................................. 13
         11.02.   Proof of Insurability....................................................... 14
         11.03.   Exclusion for Suicide or Self-Inflicted Injury.............................. 15

SECTION 12. POST-RETIREMENT SURVIVOR BENEFITS................................................. 15

SECTION 13. VESTING OF BENEFITS............................................................... 15
</TABLE>

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<TABLE>
<S>      <C>      <C>                                                                          <C>
SECTION 14.  ADMINISTRATION OF THE PLAN....................................................... 16
         14.01.   Duties and Powers........................................................... 16
         14.02.   Benefit Statements.......................................................... 16
         14.03.   Deferral Election Agreement................................................. 16

SECTION 15. AMENDMENT, SUSPENSION, AND TERMINATION............................................ 16
         15.01.   Right to Amend or Terminate................................................. 16
         15.02.   Right to Suspend............................................................ 17
         15.03.   Non-ERISA Plan.............................................................. 17
         15.04.   Right to Accelerate......................................................... 17

SECTION 16.  MISCELLANEOUS.................................................................... 17
         16.01.   Prohibition Against Alienation.............................................. 17
         16.02.   Savings Clause.............................................................. 18
         16.03.   Payment of Benefit of Incompetent........................................... 18
         16.04.   Spouse's Interest........................................................... 18
         16.05.   Successors.................................................................. 18
         16.06.   Compliance With Rule 16b-3.................................................. 18
         16.07.   Securities Law Restrictions................................................. 19
         16.08.   Headings.................................................................... 19
         16.09.   Choice of Law............................................................... 19

SECTION 17.  CHANGE IN CONTROL PROVISIONS..................................................... 19
         17.01.   General..................................................................... 19
         17.02.   Transfer to Rabbi Trust..................................................... 19
         17.03.   Joint and Several Liability................................................. 20
         17.04.   Dispute Procedures.......................................................... 20
         17.05.   Definition of Change in Control............................................. 20
</TABLE>

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                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

               (as amended and restated effective January 1, 2001)

         WHEREAS, MCN ENERGY GROUP INC., a Michigan corporation (hereinafter
referred to as the "Company"), previously merged the MCN Corporation Deferred
Fee Plan and the MCN Corporation Non-Officer Director Stock Award Plan into the
"MCN Energy Group Inc. Nonemployee Directors' Compensation Plan" (hereinafter
referred to as the "Plan") and desires to make certain changes to the Plan.

         NOW, THEREFORE, effective January 1, 2001, the MCN Energy Group Inc.
Nonemployee Directors' Compensation Plan is hereby amended and restated as
follows:

                                    SECTION 1
                                      TITLE

         The title of the plan shall be the "MCN Energy Group Inc. Nonemployee
Directors' Compensation Plan."

         It is intended that the Plan provide benefits exclusively for
individuals who are not employees of the Company and, therefore, the Plan shall
be exempt from all provisions of the Employee Retirement Income Security Act of
1974, as amended (hereinafter referred to as "ERISA").

                                    SECTION 2
                                   DEFINITIONS

         The following words and terms as used herein shall, unless the context
clearly requires a different meaning, have the respective meanings hereinafter
set forth. Except as otherwise expressly provided, the masculine gender includes
the feminine and the singular includes the plural.

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         2.01. "Account" means the record maintained by or for the Company of
each Participant's Cash Deferral Account, as defined in Section 2.05, and
Performance Share Deferral Account, as defined in Section 2.18, under the Plan.

         2.02. "Anniversary Date" means any April 1 after the Effective Date, as
defined in Section 2.12.

         2.03. "Beneficiary" means the person, persons or entity designated in
writing by the Participant on forms provided by the Company to receive
distribution of certain death benefits under the Plan in the event of the
Participant's death. A Participant may change the designated Beneficiary by
filing a new written designation with the Committee, as defined in Section 2.07,
and such designation shall be effective upon receipt by the Committee. The
designation of a Beneficiary other than the Participant's Spouse, as defined in
Section 2.28, must be consented to in writing by the Spouse. If a Participant
has not designated a Beneficiary, or if a designated Beneficiary is not living
at the time of a Participant's death, any death benefits payable under the Plan
shall be paid to the Participant's Spouse, if then living, and if the
Participant's Spouse is not then living, to the Participant's estate.

         2.04. "Board of Directors" means the Board of Directors of the Company,
as defined in Section 2.08.

         2.05. "Cash Deferral Account" means the record maintained by or for the
Company of each Participant's Deferrals, as defined in Section 2.10, (including
deferrals from the Prior Plan, as defined in Section 2.24), credited interest
and distributions under the Plan. A Participant's Deferrals shall be credited to
his Account as of the end of the month in which the Deferral is withheld from
the Participant's Covered Compensation.

         2.06 "Code" means the Internal Revenue Code of 1986, as amended.

         2.07. "Committee" means the Compensation Committee of the Board of
Directors which is responsible for the administration of the Plan.

         2.08. "Company" means MCN Energy Group Inc., a Michigan corporation,
its successors and assigns.

         2.09. "Covered Compensation" means the annual retainer fee payable
quarterly to an Eligible Board Member, as defined in Section 2.13, in the
current Plan Year, as defined in Section 2.21.

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         2.10. "Deferral" means the portion of a Participant's Covered
Compensation that has been deferred in accordance with Section 701. Deferral
amounts are retained by the Company as part of its general assets.

         2.11. "Deferral Election Agreement" means the benefit agreement
described in Section 14.03 relating to a Participant's commitment to defer
Covered Compensation.

         2.12. "Effective Date" means March 1, 1997.

         2.13. "Eligible Board Member" means a member of the Board of Directors
of the Company who is not an employee of the Company.

         2.14. "ERISA" means the Employee Retirement Income Security Act of
1974, as amended.

         2.15 "In Pay Status" means, with respect to a benefit under the Plan,
that a Participant or Beneficiary has met all of the requirements to receive
such benefit and it is being paid or is about to be paid to such Participant or
Beneficiary.

         2.16. "Participant" means an Eligible Board Member who has made a
written election to participate in the Plan in accordance with Section 3.01.

         2.17 "Performance Shares" means the annual award of common stock
equivalents pursuant to Section 6.01 which shall (i) have a total value as
determined under Section 6.01, (ii) be rounded to the nearest 100, and (iii) be
credited quarterly to Eligible Board Members' Performance Share Deferral
Account, as defined in Section 2.18. Such Performance Shares will be valued at
an amount equal to the average of the high and low of the Company common stock
price on the New York Stock Exchange Composite Tape for the trading day
preceding the day on which a credit to this Plan is to be made.

         2.18 "Performance Share Deferral Account" means the record maintained
by or for the Company of each Participant's (i) Deferrals (including deferrals
from the Prior Plan, as defined in Section 2.24 and the transfer of the
Participant's SDBRIP Benefit, as defined in Section 2.27, if any) which the
Participant has elected to be denominated in Company common stock equivalents
under Section 7.01, (ii) Performance Shares, (iii) credited dividend
equivalents, and (iv) distributions under the Plan. One fourth of a
Participant's annual award of Performance Shares shall be credited to his
Performance Share Deferral Account as of the beginning of each quarter in the
Plan year. Dividend equivalents shall be credited to the Participant's
Performance Share

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Deferral Account in accordance with Section 8.03. As of the Valuation Date
(defined in Section 10.01), the Participant's Performance Share Deferral Account
shall be valued on a cash basis with interest credited monthly as provided in
Section 8.02.

         2.19. "Plan" means the MCN Energy Group Inc. Nonemployee Directors'
Compensation Plan, as described herein and as hereafter amended.

         2.20. "Plan Interest Rate" for a Plan Year, as defined in Section 2.21,
means the average of the interest rates for the latest issue, as of the end of
the previous month, of ten-year U.S. Treasury Notes, or such other interest rate
as set by the Committee.

         2.21. "Plan Year" means the period beginning April 1 and ending March
31 of each year (a fiscal year).

         2.22. "Post-Retirement Survivor Benefit" means the benefit payable
under Section 12.01 to the Beneficiary of a Participant who dies after the
commencement of his Retirement Income Benefit, as defined in Section 2.26.

         2.23. "Pre-Retirement Survivor Benefit" means the benefit payable, as
described in Section 11.01, to the Beneficiary of a Participant who dies prior
to the commencement of his Retirement Income Benefit, as defined in Section
2.26.

         2.24. "Prior Plan" means the MCN Corporation Deferred Fee Plan and the
MCN Corporation Non-Officer Director Stock Award Plan as in effect prior to the
amendment and restatement of the Plan.

         2.25. "Retirement Date" means the first day of the month following the
month in which a Participant ceases to be an Eligible Board Member for any
reason, but in no event later than the first day of the month following the
first annual Board meeting after the Participant attains age seventy (70). For
purposes of Section 11.01, the term Retirement Date shall mean the first day of
the month following the first annual Board meeting after the Participant attains
age seventy (70).

         2.26. "Retirement Income Benefit" means the retirement benefit
described in Section 10.01.

         2.27 "SDBRIP Benefit" means the actuarial value of an Eligible Board
Member's benefit under the MCN Energy Group Inc. Supplemental Death Benefit and
Retirement Income Plan as of March 31, 1997, which shall be credited to an
Eligible Board Member's Performance Share Deferral Account as of April 1, 1997,
subject Section 6.03

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         2.28. "Spouse" means an individual who is legally married to a
Participant under the laws of the State in which the Participant resides, on the
day immediately preceding the Participant's date of death.

                                    SECTION 3
                                  PARTICIPATION

         An Eligible Board Member shall become a Participant hereunder upon
execution of a Deferral Election Agreement by the Eligible Board Member and the
Committee, no later than the March 22 prior to the first day of a Plan Year, or
upon election to the Board. A properly executed Deferral Election Agreement
shall be effective on the April 1 immediately following the execution of the
Deferral Election Agreement, and shall contain the items described in this
Section and in Sections 5.02, 7.01, 10.01, 10.03, 11.01(C), and 14.03.

                                    SECTION 4
                         TRANSFER OF THE SDBRIP BENEFIT

         Effective March 31, 1997, the MCN Energy Group Inc. Supplemental Death
Benefit and Retirement Income Plan was amended to remove the provisions which
provide benefits to Eligible Board Members. The actuarial value of an Eligible
Board Member's SDBRIP Benefit as of March 31, 1997, shall be credited to the
Eligible Board Member's Performance Share Deferral Account, which shall be
established in accordance with Section 6.02. The transfer of such SDBRIP Benefit
shall be phased into the Performance Share Deferral Account, if necessary, to
comply with Section 6.03. Any amount subject to such a phase-in shall be
credited to the Eligible Board Member's Cash Deferral Account until such time as
it may be transferred to the Eligible Board Member's Performance Share Deferral
Account, as provided under Section 7.04.

                                    SECTION 5
                         TRANSFER OF PRIOR PLAN BALANCES

                                       5
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         5.01. Transfer of Prior Plan Balances. Effective April 1, 1997, an
Eligible Board Member's account balance in the Prior Plan, if any, shall be
credited to the Cash Deferral Account under the Plan, unless the Eligible Board
Member makes an election under Section 5.02 to have such Prior Plan balance
transferred to his Performance Share Deferral Account.

         5.02 Election to Transfer Prior Plan Balance to Performance Share
Deferral Account. If an Eligible Board Member notifies the Company on or before
March 31, 1997, the Eligible Board Member shall be permitted to elect to
transfer any balance in the Prior Plan to his Performance Share Deferral
Account, established in accordance with Section 6.02. Such election shall be
made by the Eligible Board Member on a properly executed Deferral Election
Agreement. The transfer of such Prior Plan balance shall be phased in, if
necessary, to comply with Section 6.03. Any amount subject to such a phase-in
shall be credited to the Eligible Board Member's Cash Deferral Account until
such time as it may be transferred to the Eligible Board Member's Performance
Share Deferral Account, as provided under Section 7.04.

                                    SECTION 6
                         DEFERRAL OF PERFORMANCE SHARES

         6.01. Award of Performance Shares. Each Eligible Board Member who was
elected at the Annual Meeting of the Shareholders or whose term continued
thereafter as an Eligible Board Member at such meeting shall be awarded
Performance Shares whose value shall be calculated at the beginning of the
fiscal year and rounded to the nearest 100 shares of Company common stock. The
total value of the award shall be established by the Board of Directors. The
number of shares to be awarded annually to each Eligible Board Member shall
initially be based on a total value of $30,000 per year, and that value may be
changed by a majority vote of the Board of Directors, provided, however, that
any changes shall be made no more often than once in any 12-month period. One
fourth of the total amount of the Performance Shares shall be credited quarterly
to the Participant's Performance Share Deferral Account as of July 1, October 1,
January 1 and April 1. A Participant shall not have the option of receiving such
Performance Shares in cash or Company common stock prior to his Retirement Date.
The shares awarded pursuant to this Plan

                                       6
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shall be in addition to, and not in lieu of, an Eligible Board Member's annual
retainer fee or other compensation payable to each Eligible Board Member as a
result of his or her service on the Board of Directors.

         6.02. Establishment of Performance Share Deferral Account. The
Committee shall establish a Performance Share Deferral Account for each
Participant to which (i) the Participant's Performance Shares shall be credited;
(ii) the Participant's SDBRIP Benefit, if any, shall be credited in accordance
with Section 4.01; and (iii) the Participant's account balance, if any, under
the Prior Plan shall be credited in accordance with Section 5.02.

         6.03. Shares Issuable Under the Plan. Subject to adjustment as provided
in Section 6.04, the total number of Performance Shares which may be credited
under the Plan in each Plan Year during which the Plan is in effect shall be the
aggregate number of shares payable to the Eligible Board Members as set forth in
Section 6.01 of the Plan, not to exceed .03 percent of the total number of
outstanding shares of MCN Energy Group Inc. common stock as of the first day of
the Plan Year. Shares to be issued under the Plan may be authorized and unissued
shares or authorized and issued shares of common stock which have been
reacquired by the Company and held as treasury shares. Provided, however, that
the number of shares that may be issued under this Plan may not exceed 1% of the
number of shares issued and outstanding on March 1, 1994.

         6.04. Capital Adjustments. The aggregate number and class of shares
subject to and authorized by the Plan shall be proportionately adjusted for any
increase or decrease in the number of issued shares of common stock resulting
from the payment of a stock dividend, stock split, recapitalization, merger,
consolidation, reorganization or any similar capital adjustment or other
increase or decrease in the number of outstanding shares effected without
receipt of consideration by the Company.

                                    SECTION 7
                            DEFERRAL OF RETAINER FEE

                                       7
<PAGE>   12

         7.01. Election of Deferral. A Participant may elect, in his Deferral
Election Agreement, to defer all or a portion of his cash retainer fee for each
Plan Year in which he is a Participant. Such annual Deferral shall not exceed
the Participant's Covered Compensation. Except as provided in Section 10.04(C),
a Participant's election to defer all or a portion of his cash retainer fee for
a Plan Year shall be irrevocable for that Plan Year. A Participant shall
indicate on his Deferral Election Agreement whether his Deferral will be
credited to his Cash Deferral Account or his Performance Share Deferral Account.
Except as provided in Section 7.04, once an amount has been credited to the Cash
Deferral Account or the Performance Share Account, such amounts may not
subsequently be transferred to the other account.

         7.02. Establishment of a Cash Deferral Account. If a Participant so
elects on his Deferral Election Agreement, the Committee shall establish a Cash
Deferral Account for such Participant to which (i) the Participant's Deferrals
shall be credited; and (ii) the Participant's account balance, if any, under the
Prior Plan shall be credited in accordance with Section 5.01.

         7.03. Deferrals. A Participant may continue to make the annual Deferral
provided under Section 7.01 with respect to his Deferral Election Agreement
until he resigns or is otherwise removed from his membership on the Board of
Directors, or he receives a hardship withdrawal.

         7.04 Deferrals Limited By Section. If a Participant elects in his
Deferral Election Agreement to have his Deferral credited to his Performance
Share Deferral Account and such election is limited due to Section 6.03, the
amount of the Participant's Deferral that cannot be credited to his Performance
Share Deferral Account due to Section 6.03 ("Limited Deferral") shall be
credited to the Participant's Cash Deferral Account. The amount of the Limited
Deferral shall be denoted by a bookkeeping entry. At such time as the limits of
Section 6.03 permit, the Limited Deferral, plus interest equivalents at the Plan
Interest Rate, shall be transferred from the Participant's Cash Deferral Account
to his Performance Share Deferral Account. The amount transferred shall be
converted to a number of common stock equivalents equal to the average of the
high and low of the Company common stock price on the New York Stock Exchange
Composite Tape for the trading day preceding the day on which a credit to this
Plan is to be made.

                                       8
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                                    SECTION 8
                               FUNDING OF BENEFITS

         8.01. Unfunded Plan. The Plan shall be unfunded. All benefits payable
under the Plan shall be paid from the Company's general assets. The Company
shall not be required to set aside or hold in trust any funds for the benefit of
a Participant or Beneficiary, who shall have the status of a general unsecured
creditor with respect to the Company's obligation to make benefit payments
pursuant to the Plan. Any assets of the Company available to pay Plan benefits
shall be subject to the claims of the Company's general creditors and may be
used by the Company in its sole discretion for any purpose.

         8.02. Interest. Interest shall be credited and compounded monthly to
each Participant's Cash Deferral Account during each Plan Year based upon the
Plan Interest Rate in effect for such Plan Year for so long as there remains a
Cash Deferral Account balance.

         8.03 Dividend Equivalents. Dividend equivalents equal to 50% of the
dividend rate payable on Company common stock shall be credited to a
Participant's Performance Share Deferral Account based on the number of
Performance Shares in such Participant's Performance Share Deferral Account.
Dividend equivalents shall be reinvested in Performance Shares based upon the
average of the high and low of the Company common stock price on the dividend
payment date.

                                    SECTION 9
                                CLAIMS PROCEDURE

         9.01. Benefit Claims Procedure. All applications for benefits under the
Plan shall be submitted to the Committee at the Company's principal place of
business. Applications for benefits must be in writing and must be signed by the
Participant or, in the case of a

                                       9
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Pre-Retirement or Post-Retirement Survivor Benefit, by the Beneficiary or legal
representative of the deceased Participant. In the event of a Participant's
death, a certified copy of the death certificate will be required by the
Committee. The Committee reserves the right to require that the Participant
furnish proof of his age prior to processing any application. Each application
shall be acted upon and approved or disapproved within ninety (90) days
following its receipt by the Committee. In the event any application for
benefits is denied in whole or in part, the Committee shall notify the applicant
in writing of such denial and of his right to a review by the Committee and
shall set forth, in a manner calculated to be understood by the applicant,
specific reasons for such denial, specific references to pertinent Plan
provisions on which the denial is based, a description of any additional
material or information necessary for the applicant to perfect his application,
an explanation of why such material or information is necessary, and an
explanation of the Plan's review procedure.

         9.02. Appeals Procedure. Any person or his duly authorized
representative whose application for benefits is denied in whole or in part may
appeal such denial to the Committee for a review of the decision by submitting
to the Committee at the Company's principal place of business within ninety (90)
days after receiving written notice from the Committee of the denial of his
claim, a written statement:

                  (a)   requesting a review by the Committee of his application
                        for benefits;

                  (b)   setting forth all of the grounds upon which his request
                        for review is based and any facts in support thereof;
                        and

                  (c)   setting forth any issues or comments that the applicant
                        deems pertinent to his application.

         The Committee shall act upon each application within sixty (60) days
after receipt of the applicant's request for review by the Committee.

         The Committee shall make a full and fair review of each such
application and any written materials submitted by the applicant or the Company
in connection therewith and may require the Company or the applicant to submit
such additional facts, documents, or other evidence as the Committee in its sole
discretion deems necessary or advisable in making such a review. On the basis of
its review, the Committee shall make an independent determination of the
applicant's

                                       10
<PAGE>   15

eligibility for benefits under the Plan. The decision of the Committee on any
application for benefits shall be final and conclusive upon all persons.

         In the event that the Committee denies an application in whole or in
part, the Committee shall give written notice of the Committee's decision to the
applicant setting forth, in a manner calculated to be understood by the
applicant, the specific reasons for such denial and specific references to the
pertinent Plan provisions on which the Committee's decision was based.

                                       11
<PAGE>   16

                                   SECTION 10
                           FORM AND TIMING OF PAYMENT

         10.01. Normal Retirement Benefit. Subject to Section 10.02, each
Participant who retires on his Retirement Date shall be entitled to a Retirement
Income Benefit commencing on the first of the month following the month in which
his Retirement Date occurs ("Valuation Date"). As of the Valuation Date, the
Participant's Account shall be valued on a cash basis, using the average of the
high and low of the Company common stock price on the New York Stock Exchange
Composite Tape on the day before valuation is made, with interest credited
monthly at the Plan Interest Rate. Notwithstanding the fact that a Participant's
Account will be valued on a cash basis as of the Valuation Date, the
distribution to a Participant of the amount in his Performance Share Deferral
Account shall be paid in Company common stock equal to the number of shares of
Company common stock deemed to be held in the Participant's Account and valued
at the average of the high and low price of MCN Energy Group Inc. common stock
on the New York Stock Exchange Composite Tape on the day before payment is made.
Distribution of a Participant's Cash Deferral Account shall be made in cash.
Payment of the vested portion of a Participant's accounts shall be made in
accordance with the Participant's selection on his Benefit Agreement in monthly
payments in one year increments not to exceed 15 years, or as a lump sum
distribution of the Participant's Account. The amount of the monthly payments
shall be calculated to pay out over the specified period the entire balance in
the Participant's Account as of his Retirement Date with interest credited
monthly on the declining balance at the Plan Interest Rate. The Participant's
Account shall continue to be credited monthly with interest at the Plan Interest
Rate and charged with the monthly payments to the Participant. The amount of the
monthly payments to the Participant shall be adjusted on January 1 of each year
to reflect changes in the Plan Interest Rate and other changes in the
Participant's Account balance.

         10.02. Change in Payment Option. A Participant's payment election may
be changed at any time by the Participant submitting a new payment selection to
the Committee., However, any change received by the Committee less than twelve
months prior to the Participant's

                                       12
<PAGE>   17

Retirement Date shall post-pone any distribution from the Plan until a period of
twelve months has elapsed.

         10.03. Termination Benefit. A Participant who ceases to be an Eligible
Board Member prior to his Retirement Date shall receive payment of the
Participant's Account balance in accordance with the Participant's selection on
his Payment Election Form, either in monthly payments in one year increments not
to exceed 15 years, or as a lump sum distribution in an amount equal to the
Participant's Account. Payment of a Participant's termination benefit shall
begin no later than one hundred twenty (120) days after the Participant ceases
to an Eligible Board Member. After receiving a termination benefit, neither the
Participant, nor his spouse or Beneficiary shall be entitled to any further
benefit hereunder.

         10.04.   Hardship Withdrawal Benefit.

                  (A) At any time prior to the commencement of Retirement Income
         Benefits hereunder, a Participant may request that the Committee make a
         distribution to him of his Cash Deferral Account balance in a lump-sum
         within 30 days. Such distribution shall be made only if the Committee
         determines that the Participant is suffering from a financial hardship
         that cannot be satisfied from his normal sources of income.

                  (B) Financial hardship is limited to the amount required to
         meet the need created by any of the following situations:

                           1.       Financial obligations incurred by the
                                    Participant on account of death or
                                    disability in the immediate family, which
                                    obligations the Participant is not able to
                                    pay out of liquid assets or current cash
                                    flow.

                           2.       Inability to purchase out of liquid assets,
                                    current cash flow, or otherwise reasonably
                                    finance the purchase of necessary shelter,
                                    utilities, equipment, furnishings and other
                                    necessities for the Participant's immediate
                                    family.

                                       13
<PAGE>   18

                           3.       Inability to pay out of liquid assets,
                                    current cash flow or otherwise reasonably
                                    finance, educational expenses for a member
                                    of the Participant's immediate family.

                  (C) For the 24-month period beginning on the first of the
         month after receiving the hardship distribution, a Participant shall
         not be eligible to defer any portion of the retainer fee under Section
         7.01. After receiving a hardship distribution in a Plan Year, neither
         the Participant, nor his Spouse or Beneficiary shall be entitled to any
         further benefit hereunder unless the Participant completes two years of
         participation after the hardship distribution, in which event the
         Pre-Retirement Survivor Benefit shall be based solely on Deferrals
         after the hardship distribution. If a Participant dies during the two
         years of participation after the hardship distribution, the
         Pre-Retirement Survivor Benefit shall be computed as provided in
         Section 11.01, except that the projection forward shall include
         hypothetical annual Deferrals equal to zero.

                                       14
<PAGE>   19

                                   SECTION 11
                        PRE-RETIREMENT SURVIVOR BENEFITS

         11.01. Pre-Retirement Survivor Benefit. If a Participant dies prior to
his Retirement Date, his Beneficiary shall be entitled to receive an amount
equal to the Participant's Account balance as follows:

                  (A) Cash Deferral Account. The benefit from the Cash Deferral
Account shall be equal to the present value, at the Participant's date of death,
of the Participant's Cash Deferral Account projected forward to his Retirement
Date. This projection forward will be accomplished by valuing the Participant's
Cash Deferral Account as of the date of the Participant's death, crediting to
his Cash Deferral Account balance as of his date of death the amount of his
annual Deferral, if any, for the year of his death and for all subsequent years
through and including the year in which his Retirement Date falls and crediting
interest on the Account balance and projected Deferrals at the Plan Interest
Rate on his date of death in order to arrive at the projected value of his Cash
Deferral Account balance as of his Retirement Date. This projected Cash Deferral
Account balance then will be converted to its present value on the Participant's
date of death using 70% of the Plan Interest Rate on the Participant's date of
death.

         (B) Performance Share Deferral Account. The Participant's Performance
Share Deferral Account will be valued on a cash basis as of the date of the
Participant's death. Notwithstanding such cash valuation, the distribution to a
Beneficiary of the amount in the Participant's Performance Share Deferral
Account shall be paid in Company common stock equal to the number of shares of
Company common stock deemed to be held in the Participant's Account.

         (C) Payment. The pre-retirement survivor benefit shall be paid, in
accordance with the Participant's selection in his Benefit Agreement, either in
equal monthly payments in one year increments not to exceed 15 years, or as a
lump sum distribution of the Participant's Account.

         11.02 Proof of Insurability. If a new Participant is uninsurable, or
does not cooperate in the application for life insurance, such Participant's
Beneficiary shall not be entitled to receive a Pre-Retirement Survivor Benefit
under Section 11.01(A). The Beneficiary

                                       15
<PAGE>   20

of such a Participant shall receive a distribution of an amount equal to the
Participant's Account balance as of the Participant's date of death. Such
distribution shall be paid in accordance with the Participant's selection on his
Benefit Agreement, either in monthly payments in one year increments not to
exceed 15 years, or as a lump sum distribution.

         If a Participant, who was insurable at the time participation in the
Plan commenced, elects to increase his Deferral, such increase shall not be
reflected in computing the Pre-Retirement Survivor Benefit under Section
11.01(A) if the Participant became uninsurable prior to electing the increased
Deferral or does not cooperate in the application for life insurance.

         11.03. Exclusion for Suicide or Self-Inflicted Injury. Notwithstanding
any other provision of the Plan, no Pre-Retirement Survivor Benefits in excess
of a Participant's Account balance as of his date of death shall be paid to any
Participant or Beneficiary in the event the Participant dies as the result of
suicide or self-inflicted injury within two years after January 1 of the first
year of participation.

                                   SECTION 12
                        POST-RETIREMENT SURVIVOR BENEFITS

         The Beneficiary, other than the Participant's estate, of a Participant
who dies after commencement of his Retirement Income Benefit shall be entitled
to continue to receive the Retirement Income Benefit payments being made to the
Participant under Section 10.01 for the remainder of the period over which
payments were being made to the Participant. If the Beneficiary is the
Participant's estate, the Retirement Income Benefit shall be paid in a lump sum
distribution to the estate within 120 days after the date of the Participant's
death.

                                   SECTION 13
                               VESTING OF BENEFITS

         A Participant shall be 100% vested in his Account balance at all times
and shall rank as an unsecured creditor of the Company for his entire Account
balance.

                                       16
<PAGE>   21

                                   SECTION 14
                           ADMINISTRATION OF THE PLAN

         14.01.   Duties and Powers. The Committee shall be responsible for the
general administration and interpretation of the Plan and the proper execution
of its provisions. It shall cause to be maintained all necessary books of
accounts and records. It shall have power to establish, interpret, enforce,
amend, and revoke, from time to time, such rules and regulations for the
administration of the Plan and the conduct of its business as it deems
appropriate, including the right to remedy ambiguities, inconsistencies and
omissions (provided such rules and regulations are uniformly applied to all
persons similarly situated). Any section that the Committee is required or
authorized to take shall be final and binding upon each and every person who is
or may become a Plan Participant or Beneficiary.

         14.02.   Benefit Statements.02. Benefit  Statements.  No  later  than
120 days after the end of each Plan Year, the Company will provide each
Participant with a statement setting forth the Participant's Account balance as
of the last day of the immediately preceding Plan Year.

         14.03.   Deferral Election Agreement.01. Deferral Election Agreement.
The Committee shall provide to each Eligible Board Member a form of Deferral
Election Agreement, which shall set forth the Eligible Board Member's acceptance
of the terms provided hereunder, his agreement to be bound by the terms of the
Plan and such other matters as are set forth in this Plan or deemed advisable by
the Committee.

                                   SECTION 15
                     AMENDMENT, SUSPENSION, AND TERMINATION

         15.01.   Right to Amend or Terminate. The Plan may be amended or
terminated by the Board of Directors at any time. Such amendment or termination
may modify or eliminate any

                                       18

<PAGE>   22

benefit hereunder other than a benefit that is In Pay Status, or the vested
portion of a benefit that is not In Pay Status.

         15.02.   Right to Suspend. If the Board of Directors determines that
payments under the Plan would have a material adverse affect on the Company's
ability to carry on its business, the Board of Directors may suspend such
payments temporarily for such time as in its sole discretion it deems advisable,
but in no event for a period in excess of one year. The Company shall pay such
suspended payments in a lump sum immediately upon the expiration of the period
of suspension.

         15.03.   Non-ERISA Plan. The Plan is intended to provide benefits for
Eligible Board Members who are not employees of the Company and, therefore, to
be exempt from ERISA. Accordingly, the Plan may be terminated and, except for
existing Account balances and other benefits In Pay Status (which, at the option
of the Board of Directors, may be accelerated and the balance paid in a single,
actuarially equivalent lump-sum), no further benefits shall be paid hereunder in
the event it is determined by a court of competent jurisdiction or by an opinion
of counsel that the Plan constitutes an employee pension benefit plan within the
meaning of Section 3(2) of ERISA which is not so exempt.

         15.04.   Right to Accelerate.  The Board of Directors in its sole
discretion may accelerate all vested benefits upon termination of the Plan, and
pay such benefits in a single, actuarially equivalent lump-sum.

                                   SECTION 16
                                  MISCELLANEOUS

         16.01.   Prohibition Against Alienation. Except as otherwise provided
in the Plan, no right or benefit under the Plan shall be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or
charge, and any attempt to so anticipate, alienate,

                                       19

<PAGE>   23

sell, transfer, assign, pledge, encumber, or charge the same shall be void. No
such right or benefit shall be liable for or subject to the debts, contracts,
liabilities, engagements, or torts of the person entitled to such right or
benefit.

         16.02.   Savings  Clause.  If any provision of this instrument shall be
finally held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions hereof shall continue to be fully
effective.

         16.03.   Payment of Benefit of Incompetent. In the event the Committee
finds that a Participant, former Participant, or Beneficiary is unable to care
for his affairs because of his minority, illness, accident, or other reason, any
benefits payable hereunder may, unless other claim has been made therefor by a
duly appointed guardian, committee or other legal representative, be paid to a
spouse, child, parent, or other blood relative or dependent or to any person
found by the Committee to have incurred expenses for the support and maintenance
of such Participant, former Participant, or Beneficiary; and any such payments
so made shall be a complete discharge of all liability therefor.

         16.04.   Spouse's Interest. The interest in the benefits hereunder of a
spouse of a Participant who has predeceased the Participant shall automatically
pass to the Participant and shall not be transferable by such spouse in any
manner including but not limited to such spouse's will, nor shall such interest
pass under the laws of intestate succession.

         16.05.   Successors.  In the event of any consolidation, merger,
acquisition or reorganization of the Company, the obligations of the Company
under this Plan shall continue and be binding upon the Company and its
successors.

         16.06.   Compliance With Rule 16b-3. It is intended that the Plan be
applied and administered in compliance with Rule 16b-3 under the Securities and
Exchange Act of 1934. If any provision of the Plan would be in violation of Rule
16b-3 if applied as written, such provision shall not have effect as written and
shall be given effect so as to comply with Rule 16b-3, as determined by the
Board of Directors.

                                       20

<PAGE>   24

         16.07.   Securities Law Restrictions. The Company may impose such other
restrictions on any shares of Company common stock granted pursuant to this Plan
as it may deem advisable including, but not limited to, restrictions intended to
achieve compliance with the Securities Act of 1933, as amended, with the
Securities and Exchange Act of 1934, as amended, with the requirements of any
stock exchange upon which the Company common stock is then listed, and with any
Blue Sky or state securities laws applicable to such Company common stock.

         16.08.   Gender, Tense and Headings.  Headings of sections and
subsections as used herein are inserted solely for convenience and reference and
constitute no part of the Plan.

         16.09.   Choice of Law.  This Plan shall be governed by and construed
in accordance with the laws of the State of Michigan to the extent not
superseded by applicable federal statutes or regulations.

                                   SECTION 17
                          CHANGE IN CONTROL PROVISIONS

         17.01.   General.  In the event of a Change in Control, as defined in
Section 17.05, then, notwithstanding any other provision of the Plan, the
provisions of this Section 17 shall be applicable and shall supersede any
conflicting provisions of the Plan.

         17.02.   Transfer to Rabbi Trust. The Company has established a trust
pursuant to a Trust Agreement dated January 3, 1991 (the "Rabbi Trust"). The
terms of the Rabbi Trust provide that, in the event of a Change in Control and
thereafter, assets are to be transferred to such Trust to provide benefits under
the Plan. The Company shall make all transfers of funds required by the Rabbi
Trust in a timely manner and shall otherwise abide by the terms of the Rabbi
Trust.

                                       21

<PAGE>   25

         17.03.   Joint and Several Liability. Upon and at all times after a
Change in Control, the liability under the Plan of the Company and each
Affiliated Employer that has adopted the Plan shall be joint and several so that
the Company and each such Affiliated Employer shall each be liable for all
obligations under the Plan to each employee covered by the Plan, regardless of
the corporation by which such employee is employed.

         17.04.   Dispute Procedures. In the event that, upon or at any time
subsequent to a Change in Control, a claim for benefits under the Plan of a
Participant or Beneficiary who has exhausted the claims and appeals procedures
set forth in Sections 9.01 and 9.02 is denied in whole or in part, the following
additional procedures shall be applicable:
                  (a) Any amount that is not in dispute shall be paid to the
         Participant or Beneficiary at the time or times provided herein.
                  (b) The Company shall advance to such claimant from time to
time such amounts as shall be required to reimburse the claimant for reasonable
legal fees, costs and expenses incurred by such claimant in seeking a judicial
resolution of his or her claim, including reasonable fees, costs and expenses
relating to appeals; provided, however, that the Company shall not be obligated
to advance to the claimant any amounts under this Section 17.04(b) unless and
until the claimant agrees in writing to repay to the Company, immediately upon
the occurrences of a final judicial determination with respect to such dispute,
any amount of such fees, costs and expenses that is not awarded to such claimant
in a final order of a court of competent jurisdiction.

         17.05.   Definition of Change in Control. A "Change of Control"
means:
                  (a) The acquisition by any individual, entity or group(within
         the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
         Act of 1934, as amended (the "Exchange Act") (a "Person") of beneficial
         ownership (within the meaning of Rule 13d-3 promulgated under the
         Exchange Act) of 20% or more of either: (i) the then outstanding shares
         of common stock of the Company (the "Outstanding Company Common
         Stock"); or (ii) the combined voting power of the then outstanding
         voting securities of the Company entitled to vote generally in the

                                       22

<PAGE>   26

         election of directors (the "Outstanding Company Voting Securities");
         provided, however, that the following acquisitions shall not constitute
         a Change of Control: (A) any acquisition directly from the Company
         (excluding any acquisition by virtue of the exercise of a conversion
         privilege); (B) any acquisition by the Company; (C) any acquisition by
         any employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company; or (D) any
         acquisition by any corporation pursuant to a reorganization, merger or
         consolidation, if, following such reorganization, merger or
         consolidation, the conditions described in clauses (i), (ii) and (iii)
         of subsection (c) of this Section 17.05 are satisfied; or
                  (b) Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of either an actual or threatened election contest (as such terms are
         used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
         Act) or other actual or threatened solicitation of proxies or consents
         by or on behalf of a Person other than the Board; or
                  (c) Approval by the shareholders of the Company of a
         reorganization, merger or consolidation, in each case, unless,
         following such reorganization, merger or consolidation, (i) more than
         60% of, respectively, the then outstanding shares of common stock of
         the corporation resulting from such reorganization, merger or
         consolidation and the combined voting power of the then outstanding
         voting securities of such corporation entitled to vote generally in the
         election of directors is then beneficially owned, directly or
         indirectly, by all or substantially all of the individuals and entities
         who were the beneficial owners, respectively, of the Outstanding
         Company Voting Securities immediately prior to such reorganization,

                                       23

<PAGE>   27

         merger or consolidation in substantially the same proportions as their
         ownership, immediately prior to such reorganization, merger or
         consolidation, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities, as the case may be, (ii) no Person
         (excluding the Company, any employee benefit plan or related trust) of
         the Company or such corporation resulting from such reorganization,
         merger or consolidation and any Person beneficially owning, immediately
         prior to such reorganization, mergers or consolidation, directly or
         indirectly, 20% or more of the Outstanding Company Common Stock or
         Outstanding Voting Securities, as the case may be, beneficially owns,
         directly or indirectly, 20% or more of, respectively, the then
         outstanding shares of common stock of the corporation resulting from
         such reorganization, merger or consolidation or the combined voting
         power of the then outstanding voting securities of such corporation
         entitled to vote generally in the election of directors and (iii) at
         least a majority of the members of the board of directors of the
         corporation resulting from such reorganization, merger or consolidation
         were members of the Incumbent Board at the time of the execution of the
         initial agreement providing for such reorganization, merger or
         consolidation; or
                  (d) Approval by the shareholders of the Company of (i) a
         complete liquidation or dissolution of the Company or (ii) the sale or
         other disposition of all or substantially all of the assets of the
         Company, other than to a corporation, with respect to which following
         such sale or other disposition, (A) more than 60% of, respectively, the
         then outstanding shares of common stock of such corporation and the
         combined voting power of the then outstanding voting securities of such
         corporation entitled to vote generally in the election of directors is
         then beneficially owned, directly or indirectly, by all or
         substantially all of the individuals and entities who were the
         beneficial owners, respectively, of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities immediately prior to
         such sale or other disposition in substantially the same proportion as
         their ownership, immediately prior to such sale or other disposition,
         of the Outstanding Company Common Stock and Outstanding Company Voting
         Securities, as the case

                                       24

<PAGE>   28

         may be, (B) no Person (excluding the Company and any employee benefit
         plan (or related trust) of the Company or such corporation and any
         Person beneficially owning, immediately prior to such sale or other
         disposition, directly or indirectly, 20% or more of the Outstanding
         Company Common Stock or Outstanding Company Voting Securities, as the
         case may be) beneficially owns, directly or indirectly, 20% or more of,
         respectively, the then outstanding shares of common stock of such
         corporation and the combined voting power of the then outstanding
         voting securities of such corporation entitled to vote generally in the
         election of directors and (C) at least a majority of the members of the
         board of directors of such corporation were members of the Incumbent
         Board at the time of the execution of the initial agreement or action
         of the Board providing for such sale or other disposition of assets of
         the Company.

         IN WITNESS WHEREOF, MCN ENERGY GROUP INC. has caused this Plan to be
executed as of this 1st day of January, 2001.

                             MCN ENERGY GROUP INC.
                             BY_________________________________________________
                                      Daniel L. Schiffer, Senior Vice President,
                                      General Counsel and Secretary

                                       25

<PAGE>   29

                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

                       RETAINER FEE DEFERRAL ELECTION FORM

Director's Name___________________________  Soc. Sec. Number __________________

Effective for the first Plan Year:
        [ ]       In accordance with the terms of the Plan, which is hereby
                  incorporated by reference, I hereby accept and agree to all
                  the provisions of the Plan and elect to defer all or a portion
                  of my cash retainer fees earned beginning with the first Plan
                  Year as follows:

                           ______%  of my cash retainer fees are to be credited
                  to my Performance                Share Deferral Account;
                           ______%  of my cash retainer fees are to be credited
                  to my Cash Deferral          Account; and
                           ______%  of my cash retainer fees are to be paid to
                  me in cash currently.
                              100%  Total amount of Plan Year retainer fee.
                           =======

         [ ]      I do not wish to defer any portion of my cash retainer fee.

         I understand the above election shall remain in effect for future Plan
         Years unless another written election is filed with the Company prior
         to the first day of the Plan Year for which the change is to be
         effective.

____________________________                ____________________________________
Date                                             Director

                                             Receipt Acknowledged by:

____________________________                ____________________________________
Date
                                            ____________________________________
                                                              Title

                                       26

<PAGE>   30

                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

                              PAYMENT ELECTION FORM

Director's Name___________________________  Soc. Sec. Number __________________

A.       Pre-retirement Survivor Benefits:

         I elect to have my Account balance under the MCN Energy Group Inc.
         Nonemployee Director's Compensation Plan paid to my Beneficiary as a
         Pre-retirement Survivor Benefit as indicated below:

            [ ]      Lump sum payment.
            [ ]      Payment in annual installments over _____ years (in 1 year
                     increments, not to exceed 15).

B.       Normal Retirement Benefits:

         I elect to have my Account balance under the MCN Energy Group Inc.
         Nonemployee Director's Compensation Plan paid to me as indicated below
         after I retire as a director of MCN Energy Group Inc.

            [ ]      Lump sum payment.
            [ ]      Payment in annual installments over _____ years (in 1 year
                     increments, not to exceed 15).

         Note: A Post-Retirement Survivor Benefit will continue payments which
         have commenced under any of the installment payout options until the
         full payment period is satisfied.

         I understand that in addition to the above payment, I may be eligible
         for a hardship withdrawal pursuant to Section 10.04 of the Plan.

C.       Termination Benefits:

         I elect to have my Account balance under the MCN Energy Group Inc.
         Nonemployee Director's Compensation Plan paid to me as indicated below
         after I cease to be a director of MCN Energy Group Inc.

            [ ]      Lump sum payment.
            [ ]      Payment in annual installments over _____ years (in 1 year
                     increments, not to exceed 15).

___________________________                _____________________________________
Date                                              Director

                                           Receipt Acknowledged by:
___________________________                _____________________________________
Date
                                           _____________________________________
                                           Title

                                       27

<PAGE>   31

                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

                          BENEFICIARY DESIGNATION FORM

Director's Name ______________________________________________

Soc. Sec. Number _____________________________________________
Any amount payable under the MCN Energy Group Inc. Nonemployee Directors'
Compensation Plan that remains unpaid at my death shall be payable to the
following primary beneficiary or beneficiaries (include name and address):

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
If any of the above-named primary beneficiaries shall predecease me, or shall
survive me but dies before receiving all amounts to be paid, I designate the
following person as a contingent beneficiary to receive any such unpaid amounts
(include name and address):

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

__________________________         _____________________________________________
Date                               Director
                                   Receipt Acknowledged by:

__________________________         _____________________________________________
Date

                                   _____________________________________________
                                   Title

                                       28
<PAGE>   32

                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

                        PRIOR PLAN ACCOUNT ELECTION FORM

PRIOR PLAN ACCOUNT TRANSFER ELECTION:

As of January 31, 1997, your Prior Plan Account balance was $________________.
Please indicate your election regarding your Prior Plan Account balance below:

         [ ]         I elect to transfer _____% of my Prior Plan Account balance
                     to my Performance Share Deferral Account under the MCN
                     Energy Group Inc. Nonemployee Directors' Compensation Plan
                     ("Plan").

         The portion of my Prior Plan Account Balance not transferred to my
         Performance Share Deferral Account shall be transferred to my Cash
         Deferral Account under the Plan and shall be credited with earnings at
         the Plan Interest Rate.

__________________________         _____________________________________________
Date                               Director

                                   Receipt Acknowledged by:

__________________________         _____________________________________________
Date
                                   _____________________________________________
                                   Title

                                       1
<PAGE>   33

                        MCN ENERGY GROUP INC. CORPORATION
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

                        PRIOR PLAN ACCOUNT ELECTION FORM

Director's Name___________________________  Soc. Sec. Number __________________

PRIOR PLAN ACCOUNT TRANSFER ELECTION:
As of December 31, 1996, your Prior Plan Account balance was $________________.
Please indicate your election regarding your Prior Plan Account balance below:

         _____       I elect to transfer my Prior Plan Account balance to my
                     Performance Share Deferral Account under the MCN Energy
                     Group Inc. Nonemployee Directors' Compensation Plan
                     ("Plan").

         I understand that if I do not make the above election, my account
         balance from the Prior Plan shall be transferred to my Cash Deferral
         Account under the Plan and will be credited with earnings at the Plan
         Interest Rate.

__________________________         _____________________________________________
Date                               Director

                                   Receipt Acknowledged by:

__________________________         _____________________________________________
Date
                                   _____________________________________________
                                   Title

<PAGE>   34

                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN
                             DEFERRED FEE AGREEMENT

         THIS AGREEMENT is made this __________ day of__________________________
19___ , between MCN Energy Group Inc., a Michigan Corporation, (the "Company")
and___________________________ (the "Director").

                                   WITNESSETH

         WHEREAS, the Director has been elected to serve as a member of the
Board of Directors of the Company; and

         WHEREAS, the Company desires to retain the services of the Director.

         NOW, THEREFORE, in consideration of the foregoing and the benefits to
be derived hereunder, the Company and the Director agree
as follows:

         1.       The Director may defer all or any portion of his or her fees
under the MCN Energy Group Inc. Nonemployee Directors' Compensation Plan (the
"Plan") subject to all the terms and conditions of the Plan. The Plan and all
its provisions are hereby incorporated by reference.

         2.       The Director may elect, on the form attached hereto, prior to
the beginning of the Plan Year to which the election relates, to defer receipt
of all or any portion of the fees payable to the Director; provided, however, an
election for the first year that a Director serves on the Board of Directors of
the Company may be made at any time during that year but shall be effective only
for fees earned after the election is received by the Company. An election is
irrevocable for the current fiscal year. An election shall be irrevocable for
future fiscal years unless a written revocation is filed with the Company prior
to the first day of the fiscal year for which the revocation is desired.

         3.       Nothing contained in this agreement and no action taken
pursuant to this agreement shall create or be construed to create a trust of any
kind or a fiduciary relationship between the Company and the Director, a
beneficiary or any other person. The obligation to make payments under this
agreement shall be and remain an unsecured, unfunded general obligation of the

<PAGE>   35

Company, subject to the claims of its general creditors. No Director,
beneficiary or any other person shall at any time have a property interest in
any specific asset of the Company.

         4.       The right of the Director, beneficiary or any other person to
the benefits under this agreement shall not be subject to any voluntary or
involuntary alienation, assignment, pledge, transfer, or other disposition.

         5.       Nothing contained in this agreement shall be construed as a
contract for services between the Company and the Director, or as a right of the
Director to continue to hold office, or as a limitation of the right of the
shareholders to discharge the Director, with or without cause, or as a
limitation of the right of the Director to resign from office at any time.

         6.       The Company's Board of Directors may at any time amend or
terminate this agreement; provided, however, that no such amendment or
termination shall affect amounts already deferred pursuant to this agreement.

         7.       This agreement shall be governed by and construed according to
the laws of the State of Michigan

<PAGE>   36

         8.       The Company shall pay all legal fees and expenses that the
Director may incur as a result of the Company contesting the validity,
enforceability, or the Director's interpretation of, or determinations under
this agreement other than an issue relating to a hardship withdrawal under the
Plan.

         9.       The foregoing, including the Plan incorporated herein by
reference, contains the entire agreement between the Company and the Director
relating to deferred fees.

         IN WITNESS WHEREOF, the undersigned officer of the Company has executed
this agreement on behalf of the Company, and the Director has executed this
agreement on the date first above written:

Attest:                       MCN ENERGY GROUP INC.

________________________________    By:  _______________________________________
                                           Its: ________________________________

                                    DIRECTOR

                                    ____________________________________________
                                    Director

<PAGE>   37

                              MCN ENERGY GROUP INC.
                    NONEMPLOYEE DIRECTORS' COMPENSATION PLAN

                                      HISTORICAL BACKGROUND

03/24/88          MichCon Board of Directors by consent adopts MichCon Directors
                  Deferred Fee Plan.

01/03/89          MCN Corporation changes the name of the MichCon Directors'
                  Deferred Fee Plan to MCN Corporation Directors' Deferred Fee
                  Plan (see MichCon Minutes of Regular Meeting of Board of
                  Directors 01/03/89).

01/04/89          MCN Corporation adopts the Plan.

12/20/89          MCN Corporation adopted the MCN Corporation Deferred Fee Plan
                  (see 12/20/89 MCN Corporation Minutes of Regular Meeting of
                  Board of Directors, page 21).

02/24/90          MCN Corporation Minutes of Regular Meeting of Board of
                  Directors authorizes amendment for Change of Control language
                  (Section 14).

02/26/92          MCN Corporation Minutes of Regular Meeting of Board of
                  Directors February 26, 1992, Section 5.01 of the Corporation's
                  Directors' Deferred Fee Plan is amended to read as follows (p.
                  10):
                           5.01. Normal Retirement Benefit. Each Participant who
                           retires on his Retirement Date shall be entitled to a
                           Retirement Income Benefit commencing on the first of
                           the month following the month in which his retirement
                           date occurs. The Participant's Retirement Income
                           Benefit shall be paid, in accordance with the
                           Participant's selection in his Benefit Agreement,
                           either in equal monthly payments of 5, 10, or 15
                           years, or as a lump sum distribution of the
                           Participant's Account. A Participant's selection may
                           be changed at any time, but any change made less than
                           three years prior to a Participant's Retirement Date
                           shall be void. The amount of the monthly payments
                           shall be calculated to pay out over the specified
                           period the entire balance in the Participant's
                           Account as of his Retirement Date with interest
                           credited monthly on the declining balance, from the
                           Participant's Retirement Date until the benefit has
                           been distributed in full at the Plan Interest Rate.
                           The Participant's Account shall continue to be
                           credited monthly with interest at the Plan Interest
                           Rate and charged with monthly payments to the
                           Participant. the amount of the monthly payments to
                           the Participant shall be adjusted on January 1 of
                           each year to reflect changes in the Plan Interest
                           Rate and other changes in the Participant's Account
                           balance.

08/15/92 Plan restated.

<PAGE>   38

03/01/97          Plan amended and restated.

01/01/01          Plan amended and restated.

                  Section 10.01 was to read as shown. Prior to amendment, the
                  section read as follows:

                           Each Participant who retires on his Retirement Date
                  shall be entitled to a Retirement Income Benefit commencing on
                  the first of the month following the month in which his
                  Retirement Date occurs ("Valuation Date"). As of the Valuation
                  Date, the Participant's Account shall be valued on a cash
                  basis, using the average of the high and low of the Company
                  common stock price on the New York Stock Exchange Composite
                  Tape on the day before valuation is made, with interest
                  credited monthly at the Plan Interest Rate. Notwithstanding
                  the fact that a Participant's Account will be valued on a cash
                  basis as of the Valuation Date, the distribution to a
                  Participant of the amount in his Performance Share Deferral
                  Account shall be paid in Company common stock equal to the
                  number of shares of Company common stock deemed to be held in
                  the Participant's Account and valued at the average of the
                  high and low price of MCN Energy Group Inc. common stock on
                  the New York Stock Exchange Composite Tape on the day before
                  payment is made. Payment of the vested portion of a
                  Participant's accounts shall be made in accordance with the
                  Participant's selection on his Benefit Agreement in monthly
                  payments in one year increments not to exceed 15 years, or as
                  a lump sum distribution of the Participant's Account. The
                  amount of the monthly payments shall be calculated to pay out
                  over the specified period the entire balance in the
                  Participant's Account as of his Retirement Date with interest
                  credited monthly on the declining balance at the Plan Interest
                  Rate. The Participant's Account shall continue to be credited
                  monthly with interest at the Plan Interest Rate and charged
                  with the monthly payments to the Participant. The amount of
                  the monthly payments to the Participant shall be adjusted on
                  January 1 of each year to reflect changes in the Plan Interest
                  Rate and other changes in the Participant's Account balance.

                  Section 10.02 was amended to read as shown. Prior to
                  amendment, the section read as follows:

                           A Participant's payment election may be changed at
                  any time by the Participant submitting a new payment selection
                  to the Committee, but any change received by the Committee
                  less than twelve months prior to the Participant's Retirement
                  Date shall be void.<PAGE>   1
                                                                   EXHIBIT 10.18

                           MCN ENERGY GROUP SEVERANCE

                                 ALLOWANCE PLAN

<PAGE>   2

                           MCN ENERGY GROUP SEVERANCE
                                 ALLOWANCE PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
ARTICLE         SECTION                                                                                        Page
-------         -------                                                                                        ----

<S>             <C>                                                                                            <C>
   I                                DEFINITIONS...................................................................1

  II                                ELIGIBILITY...................................................................4
                  2.1               Eligibility for Basic Benefit and Supplemental Benefit Payments...............4
                  2.2               Eligibility for Notice Period Benefits........................................5
                  2.3               Eligibility for Retention Benefit Payments....................................5
                  2.4               Ineligibility.................................................................6

 III                                BENEFITS......................................................................6
                  3.1               Basic Benefits................................................................6
                  3.2               Supplemental and Notice Period Benefits.......................................7
                  3.3               Retention Benefit.............................................................8
                  3.4               Timing of Benefit Payments....................................................9

  IV                                ADMINISTRATION...............................................................10
                  4.1               Allocation of Responsibility Among Fiduciaries for
                                         Plan Administration.....................................................10
                  4.2               Delegation of Fiduciary Responsibilities.....................................11
                  4.3               Miscellaneous................................................................11
                  4.4               Administrator................................................................11

   V                                MISCELLANEOUS................................................................13
                  5.1               Communication to Employees...................................................13
                  5.2               Limitation of Rights.........................................................14
                  5.3               Benefits Solely From General Assets..........................................14
                  5.4               Nonassignability of Rights...................................................14
                  5.5               Amendment or Termination of Plan.............................................15
                  5.6               Claims Procedure.............................................................15
                  5.7               Governing Law................................................................15
</TABLE>

<PAGE>   3

                                MCN ENERGY GROUP

                            SEVERANCE ALLOWANCE PLAN

         WHEREAS, MCN Energy Group Inc. (the "Company") has previously adopted
the MichCon Severance Allowance Plan and desires to make certain changes in the
plan.

         NOW, THEREFORE, the Company amends and restates the MichCon Severance
Allowance Plan effective January 1, 2000, to reflect the title of the MCN Energy
Group Severance Allowance Plan (the "Plan") and to incorporate the terms of the
additional Retention Benefit, as detailed herein.

         This Plan is intended to qualify as a severance pay plan under
Department of Labor Regulation Section 2510.3-2(b). As such, the Plan shall not
be subject to parts 2 (participation and vesting) and 3 (funding) of the
Employee Retirement Income Security Act of 1974.

                                    ARTICLE I

                                   DEFINITIONS

              1.1 As used herein, the following terms shall have the following
meanings, unless the context requires otherwise. Where necessary or appropriate
to the context, the masculine shall include the feminine, the singular shall
include the plural and the plural shall include the singular.

              (a) "Administrator" means MCN Energy Group Inc.

                                        1

<PAGE>   4

              (b) "Base Pay" means an Employee's base pay at the time of his/her
Severance Date for the last normally scheduled payroll period, excluding any pay
for overtime, bonuses, any special pay of any kind and other premium or
differential pay, if applicable.

              (c) "Basic Benefit" means an amount equal to an Employee's Base
Pay, paid for the duration set forth in Section 3.1.

              (d) "Basic Benefit Payment" means a payment of Basic Benefits made
in accordance with the schedule set forth in Section 3.1.

              (e) "Claim" means any claim for a Plan benefit filed by a
Participant.

              (f) "Code" means the Internal Revenue Code of 1986, as amended.

              (g) "Company" means MCN Energy Group Inc., a Michigan Company, its
successors and assigns, and any direct or indirect subsidiary of MCN which has
elected, with the consent of MCN, to participate in the Plan.

              (h) "Employee" means any regular full-time salaried non-officer
employee and regular part-time salaried non-officer employee of the Company. Any
individual who was employed by a member of the Detroit Edison Company affiliated
group of corporations immediately prior to Legal Day One (the first day that on
which MCN Energy Group Inc. is legally merged into Detroit Energy Enterprises)
shall not be an Employee for purposes of this Plan.

              (i) "Operating Business" means Michigan Consolidated Gas Company,
Citizens Gas Fuel Company and MichCon Home Services and any direct or indirect
subsidiary of those entities.

                                       2

<PAGE>   5

              (j) "Participant" means each Employee who participates in the Plan
in accordance with Article II.

              (k) "Participating Company" means the Company and any other
Company which is classified by the Board of Directors of MCN Energy Group Inc.
as a Participating Company for purposes of this Plan and which, with the
approval of the Board of Directors of the Company, elects to become a party
hereto by adopting the Plan for the benefit of its Employees by resolution of
its Board of Directors. In all dealings, the Company's Officer responsible for
Human Resources or his or her designate may act as agent for any Participating
Company.

              (l) "Plan" means the MCN Energy Group Severance Allowance Plan as
set forth herein, together with any and all amendments and supplements hereto.

              (m) "Plan Year" means the period beginning on January 1 and ending
on December 31 of each calendar year.

              (n) "Retention Benefit" means the benefit provided under Section
3.3 of the Plan.

              (o) "Service Date" means the date that is a compression of time an
Employee worked with MCN Energy Group Inc. or any of its affiliated group of
corporations between the Employee's date of hire and the Employee's Severance
Date, as calculated in accordance with standardized Company procedures.

              (p) "Severance Benefits" means the benefits computed in accordance
with Section 3.1 and 3.2 of the Plan.

                                       3

<PAGE>   6

              (q) "Severance Date" means the date the employee severs employment
as agreed to in the severance agreement executed pursuant to the terms of
Section 2.1(b) of the Plan.

                                   ARTICLE II

                                   ELIGIBILITY

         Benefits under this Plan will be paid only if the Company decides in
its discretion that an Employee is entitled to them.

         2.1 Eligibility for Basic Benefit and Supplemental Benefit Payments.
For purposes of Sections 3.1 and 3.2(a), only an Employee who:

              (a) Is terminated by the Company due to a change or reduction in
the business of the Company;

              (b) Signs a severance agreement, which includes a release of
claims;

              (c) Has returned all Company properties and paid the Company all
monies owed to the Company; and

              (d) Is not receiving benefits under any other severance plan of
the Company or termination Agreement;

will be eligible for the Basic Benefits pursuant to Section 3.1 and the
Supplemental Benefits pursuant to Section 3.2(a). Notwithstanding the
requirements described in this Section 2.1, an Employee who meets the
eligibility requirements of Section 2.3 shall also be eligible for the Basic
Benefits and Supplemental Benefits described in Sections 3.1 and 3.2(a),
respectively.

                                       4

<PAGE>   7

         2.2 Eligibility for Notice Period Benefits. For purposes of Section
3.2(b), an Employee who meets the requirements under Section 2.1 or Section 2.3
and who is not employed by an Operating Business of the Company will be eligible
for the Notice Period Benefits under Section 3.2(b).

         2.3 Eligibility for Retention Benefit Payments. For purposes of Section
3.3, only an Employee (including a non-officer salaried exempt or a salaried
non-exempt Employee who is on short-term disability, non-permanent long-term
disability (less than 24 months) or a leave under the Family Medical Leave Act),
who:

              (a) Was employed prior to January 1, 2000;

              (b) Is notified that his or her job position has been eliminated
as a result of the pending merger with DTE Energy Company;

              (c) Is not offered an Equivalent Position, as defined in Section
3.3(b);

              (d) Does not voluntarily terminate employment (other than as
described in Section 2.3(e)) or elect the Early Retirement Option under the MCN
Energy Group Retirement Plan or participate in the Voluntary Resignation Offer
Program;

              (e) Terminates employment with the Company as a result of an
action described in subsections 2.3(b) and (c) during the period beginning
January 1, 2000 and ending on the day after the day on which the Staffing and
Selection Process is complete; and

              (f) Executes a Severance Agreement releasing all claims against
the merged controlled group of entities

                                       5

<PAGE>   8

will be eligible for the Retention Benefit described in this Section 3.3
("Retention Benefit Participant"). An Employee who is eligible under this
Section 2.3 for Retention Benefits described in Section 3.3 shall also be
eligible for Basic Benefits and Supplemental and Notice Benefits under Sections
3.1 and 3.2, respectively.

         2.4 Ineligibility. An Employee will not be eligible for any Basic
Benefits or Notice Benefits under the Plan unless a termination is caused by
subsection 2.3(b) and (c) if:

              (a) Such Employee voluntarily terminates or quits or is terminated
from employment by the Company other than as a result of change or reduction in
business;

              (b) Such Employee declines any offer of employment by the Company
or any of its affiliates; or

              (c) Such Employee is terminated because the Company is sold or
substantially all of the assets of the Company, the plant or facility at which
he/she is employed are sold, and the Employee is offered employment with the
purchaser.

                                   ARTICLE III

                                    BENEFITS

         3.1 Basic Benefits. A Participant will receive a predetermined lump sum
payment ("Basic Benefit") based on his or her number of years of service (the
number of years of service from his or her Service Date to his or her Severance
Date) and his or her Base Pay, in accordance with the following schedule:

                                       6

<PAGE>   9

<TABLE>
<CAPTION>
                  Years of                                    Basic
                  Service                                     Benefit Payments
                  -------                                     ----------------
<S>                                                           <C>
                  Less than 2 years                           1/2 month of Base Pay
                  2 years                                     1 month of Base Pay
                  3 or 4 years                                2 months of Base Pay
                  5 or 6 years                                3 months of Base Pay
                  7 or 8 years                                4 months of Base Pay
                  9 or 10 years                               5 months of Base Pay
                  11 or 12 years                              6 months of Base Pay
                  13 or 14 years                              7 months of Base Pay
                  15 or 16 years                              8 months of Base Pay
                  17 or 18 years                              9 months of Base Pay
                  19 or 20 years                              10 months of Base Pay
                  21 or 22 years                              11 months of Base Pay
                  23 years or more                            12 months of Base Pay
</TABLE>

Notwithstanding anything to the contrary herein, the total Basic Benefits a
Participant may receive pursuant to this Section 3.1 may not exceed his or her
annualized Base Pay.

         3.2 Supplemental and Notice Period Benefits

              (a) Supplemental Benefit Payments. Supplemental Benefit Payments
for Participants may also include a pre-approved, prorated corporate incentive
award and will include external outplacement assistance. The duration, provider
and level of outplacement assistance will vary depending upon the Employee's
length of service, position, salary and the business conditions of the market
place and will be determined at the sole discretion of the Company.

              (b) Notice Period Benefits. Additional payments will be made
during a notice period for eligible Employees, as follows:

                                       7

<PAGE>   10

               (i)   For Employees at the Director level and above, the notice
                     period is equal to three months.

               (ii)  For exempt Employees, the notice period is equal to two
                     months.

               (iii) For non-exempt Employees, the notice period is equal to one
                     month.

  The notice period is normally a working period, as well as a transition
period. The end of the notice period shall be the Employee's Severance Date.

         3.3 Retention Benefit

              (a) General. The Retention Benefit Payment shall equal 50% of a
Retention Benefit Participant's base pay earned from January 1, 2000 through
December 31, 2000, reduced for applicable income and employment tax
withholdings. The cash payment will be made within 30 calendar days after a
Retention Benefit Participant has been notified that his or her position has
been eliminated as a result of the pending merger with DTE Energy Company with
no offer of an Equivalent Position. Provided, however, that no Retention Benefit
Payment will occur until the Retention Benefit Participant executes a Severance
Agreement waiving all claims against the merged controlled group of entities and
actually terminates employment within the time-period described in Section
2.3(e), above. A Retention Benefit Participant's medical, dental and vision
coverage, as in effect immediately prior to Legal Day One, will continue until
the last day of the month in which employment termination occurs. The Retention
Benefit also includes outplacement assistance as described in Section 3.2(a).

              Notwithstanding the foregoing, no Retention Benefit will be
provided to an Employee who voluntarily terminates employment or elects the
Company's Early Retirement Offer, even if such individual's position is
eliminated as a result of the merger and within the

                                       8

<PAGE>   11

designated time-period unless such termination is caused by subsection 2.3(b)
and (c).

              (b) For purposes of this Section 3.3, an Equivalent Position means
a position within the merged controlled group of entities that meets all of the
following:

                   (i)   Compensation. Compensation will be deemed to be
                         comparable if the Employee stays in the same job band
                         as the Employee's prior position, the difference
                         between the top of the base pay range in the job band
                         of the new position and the prior position does not
                         decrease by more than 5 percent and eligibility to
                         participate in benefit plans and programs remains the
                         same.

                   (ii)  Skills. The new position requires the same level and
                         type of education as the Employee's prior position.
                         There is recognition that skill sets are not fungible.

                   (iii) Level. The Employee's band/tier does not decrease,
                         regardless of any change in title or number of direct
                         reports. The Employee's upward reporting relationship
                         does not change.

                    (iv) Location. The Employee's commute (from personal
                         residence to job location) does not increase by more
                         than 25 miles.

For purposes of Section 3.3(b)(i), an Employee's eligibility to participate in
benefit plans and programs will be deemed to be equivalent even though specific
plans or programs are

              (a) amended, if such amendment does not change the definition of
eligibility to participate in such plan or program, or

              (b) terminated in their entirety.

         3.4 Timing of Benefit Payments

                  (a) A Participant's Basic Benefit shall be paid in a single
sum cash payment no later than 30 calendar days following such Participant's
Severance Date.

                                       9

<PAGE>   12

              (b) All payments under this Plan shall be subject to any
withholding required by state or Federal law.

              (c) If a Participant dies after execution of a Severance Agreement
and prior to receiving payments under this Plan, an amount equal to the total
remaining Supplemental Benefit Payments, Basic Benefit Payments and Retention
Benefit Payment will be paid to his or her beneficiary in one lump sum within 30
calendar days of the Company receiving notice of the Participant's death. If a
Participant has not designated a beneficiary, payment will be made to his or her
estate.

              (d) Notwithstanding anything to the contrary herein, no
Participant will receive any amounts pursuant to Article III of this Plan in
excess of twice his or her annual compensation (as defined for purposes of
Department of Labor Regulation Section 2510.3-2(b)) for the year preceding
termination.

                                   ARTICLE IV

                                 ADMINISTRATION

              4.1 Allocation of Responsibility Among Fiduciaries for Plan
Administration. The Administrator shall have the sole responsibility for the
administration of the benefit structure of the Plan as specifically described in
the Plan; provided, however, that the Administrator may, in its sole discretion,
designate and allocate any or all of its responsibilities to other persons or
organizations, including the Vice President of Human Resources.

                                       10

<PAGE>   13

         4.2 Delegation of Fiduciary Responsibilities. The Company and the
Administrator shall have the power to delegate their respective specific
fiduciary responsibilities to officers or Employees of the Company or to other
individuals or organizations by notifying them as to the duties and
responsibilities delegated. Each person to whom responsibilities are so
delegated shall serve at the pleasure of the fiduciary making the delegation
and, if an Employee of the Company, without compensation. Any such person may
resign by delivering a written resignation to the fiduciary making the
delegation. Vacancies created by resignation, death or other cause may be filled
by the fiduciary or the assigned responsibilities may be reassumed or
redelegated by the fiduciary.

         4.3 Miscellaneous. Each fiduciary agrees that any directions given,
information furnished or action taken by it shall be in accordance with the
provisions of the Plan authorizing or providing for such information, direction
or action. Furthermore, each fiduciary may rely upon any such direction,
information or action of another fiduciary as being proper under the Plan and is
not required under the Plan to inquire into the propriety of any such direction,
information or action. It is intended that each fiduciary shall be responsible
for the proper exercise of its own powers, duties, responsibilities and
obligations under the plan and to the extent permitted by law, shall not be
responsible for any act or failure to act of another fiduciary.

         4.4 Administrator.

              (a) Powers of Administrator. Except to the extent delegated by the
Company or the Administrator, the Administrator shall administer the benefit
structure of the Plan in

                                       11

<PAGE>   14

accordance with its terms and shall have all powers necessary to carry out its
terms, including, but not by way of limitation, the following:

                              (i)       To resolve all questions relating to the
                                        participation in the Plan by
                                        Participants.

                              (ii)      To compute and certify to the Company
                                        the amount of benefits payable to
                                        Participants.

                              (iii)     To authorize all disbursements of
                                        benefits to Participants.

                              (iv)      To obtain from the Company and from
                                        Participants such information as shall
                                        be necessary for the proper
                                        administration of the Plan.

                              (v)       To prepare and distribute, in such
                                        manner as the Administrator determines
                                        to be appropriate, information
                                        explaining the Plan.

                              (vi)      To furnish the Company, upon request,
                                        such annual reports with respect to the
                                        administration of the Plan as are
                                        reasonable and appropriate.

                              (vii)     To receive, review and keep on file (as
                                        it deems convenient or proper) reports
                                        of the receipts and disbursements of the
                                        Plan.

                              (viii)    To adopt and prescribe regulations and
                                        procedures to be followed by any
                                        Participant in filing applications for
                                        benefits, and for the furnishing and
                                        verification of evidence and proofs
                                        necessary to establish his/her rights to
                                        benefits under the Plan.

                                       12
<PAGE>   15

                              (ix)      To make and publish such rules for the
                                        regulation of the Plan as are not
                                        inconsistent with the terms set forth
                                        herein.

The Administrator shall have no power to add to, subtract from or modify any of
the terms of the Plan, or to change or add to any Benefits provided by the Plan,
or to waive or fail to apply any requirements of eligibility for a Benefit under
the Plan. The Administrator shall perform all of its duties in a uniform and
nondiscriminatory manner.

              (b) Finality of Decision. All determinations of the Administrator,
or its delegatee if its authority is so delegated, shall be final and binding on
all persons except as otherwise expressly provided herein.

              (c) Examination of Records. The Administrator will make available
to each Participant such of its records under the Plan as pertain to him/her,
for examination at reasonable times during normal business hours.

              (d) Reliance on Records. In administering the Plan, the
Administrator will be entitled to the extent permitted by law to rely
conclusively on all records in its possession for the determination of the
available benefits under the Plan.

                                    ARTICLE V

                                  MISCELLANEOUS

         5.1 Communication to Employees. Promptly after the Plan is amended and
restated, the Company will notify all Employees of the availability and terms of
the applicable Plan provisions.

                                       13

<PAGE>   16

         5.2 Limitation of Rights. Neither the establishment of the Plan nor any
amendment thereof will be construed as giving to any Participant or other person
any legal or equitable right against the Administrator or the Company, except as
expressly provided herein, and in no event will the terms of employment or
service of any Participant be modified or in any way be affected hereby.

         5.3 Benefits Solely From General Assets. The Plan shall be unfunded.
The benefits provided hereunder will be paid solely from the general assets of
the Company. The Participating Companies shall not be required to set aside or
hold in trust any funds for the benefit of a Participant, who shall have the
status of a general unsecured creditor with respect to a Participating Company's
obligation to make benefit payments pursuant to the Plan. Any assets of a
Participating Company available to pay Plan benefits shall be subject to the
claims of the Participating Companies' general creditors and may be used by the
Participating Companies in their sole discretion for any purpose.

         5.4 Nonassignability of Rights. The right of any Participant to receive
any reimbursement under the Plan shall not be alienable by the Participant by
assignment or any other method, and will not be subject to be taken by his/her
creditors by any process whatsoever, and any attempt to cause such right to be
so subjected will not be recognized, except to such extent as may be required by
law.

                                       14

<PAGE>   17

         5.5 Amendment or Termination of Plan. This Plan has been established by
the Company with the intention of being maintained indefinitely. Nonetheless,
the Company reserves the right to amend, modify, suspend or terminate the Plan
at any time by written instrument signed by MCN Energy Group's President or his
or her delegate.

         5.6 Claims Procedure. The Company shall make all determinations as to
the right of any person to a benefit. Any denial by the Company of the claim for
benefits under the Plan by a Participant or beneficiary shall be stated in
writing by the Company and delivered or mailed to the Participant or
beneficiary; and such notice shall set forth the specific reasons for the
denial, written to the best of the Company's ability in a manner that may be
understood without legal or actuarial counsel. In addition, the Company shall
afford a reasonable opportunity to any Participant or beneficiary whose claim
for benefits has been denied for a review of the decision denying the claim and,
in the event of continued disagreement, either may appeal to the Vice President
of Human Resources, whose decision shall be final.

         5.7 Governing Law. The Plan shall be construed according to the
applicable federal law and, to the extent not preempted by federal law, by the
laws of the State of Michigan, where it is made and where it shall be enforced.

                                       15

<PAGE>   18

         IN WITNESS WHEREOF, the Company has caused this instrument to be
executed by its duly authorized officer as of the 1st day of January, 2000.

                           MCN Energy Group Inc.

                           By:
                              --------------------------------------------
                              Lawrence A. Mills

                           Its: Vice President of Human Resources

                                       16

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