Document:

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                                 EXHIBIT (4)(a)
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                                                                  EXHIBIT (4)(a)

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                          FOURTH SUPPLEMENTAL INDENTURE

                                     between

                            CONSUMERS ENERGY COMPANY

                                       and

                              THE BANK OF NEW YORK

                           Dated as of May 31st, 2001

                      ====================================

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                                TABLE OF CONTENTS

<TABLE>
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                                                                                                                PAGE
                                                                                                                ----
<S>               <C>                                                                                           <C>
                                                        ARTICLE I. DEFINITIONS
SECTION 1.1.      Definition of Terms                                                                             2

                                        ARTICLE II. GENERAL TERMS AND CONDITIONS OF THE NOTES
SECTION 2.1.      Designation and Principal Amount                                                                3
SECTION 2.2.      Maturity                                                                                        3
SECTION 2.3.      Form and Payment                                                                                3
SECTION 2.4.      Global Note                                                                                     4
SECTION 2.5.      Interest                                                                                        5

                                              ARTICLE III. REDEMPTION OF THE NOTES
SECTION 3.1.      Special Event Redemption                                                                        6
SECTION 3.2.      Optional Redemption by Issuer                                                                   6
SECTION 3.3.      No Sinking Fund                                                                                 7

                                        ARTICLE IV. EXTENSION OF INTEREST PAYMENT PERIOD
SECTION 4.1.      Extension of Interest Payment Period                                                            7
SECTION 4.2.      Notice of Extension                                                                             8
                                                       ARTICLE V. EXPENSES
SECTION 5.1.      Payment of Expenses                                                                             8
SECTION 5.2.      Payment Upon Resignation or Removal                                                             9

                                                    ARTICLE VI. SUBORDINATION
SECTION 6.1.      Agreement to Subordinate                                                                        9

                                            ARTICLE VII. COVENANT TO LIST ON EXCHANGE
SECTION 7.1.      Listing on an Exchange                                                                         10

                                                   ARTICLE VIII. FORM OF NOTES
SECTION 8.1.      Form of Note                                                                                   10

                                               ARTICLE IX. ORIGINAL ISSUE OF NOTES
SECTION 9.1.      Original Issue of Notes                                                                        16
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<TABLE>
<S>               <C>                                                                                            <C>
                                               ARTICLE X. MISCELLANEOUS
SECTION 10.1      Provisions of Indenture for the Sole Benefit of Parties and Holders of Trust Securities        16
SECTION 10.2      Ratification of Indenture                                                                      16
SECTION 10.3.     Trustee Not Responsible for Recitals                                                           16
SECTION 10.4.     Governing Law                                                                                  16
SECTION 10.5.     Separability                                                                                   17
SECTION 10.6.     Counterparts                                                                                   17
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                                       ii

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            FOURTH SUPPLEMENTAL INDENTURE, dated as of May 31, 2001, (the
"Fourth Supplemental Indenture"), between Consumers Energy Company, a Michigan
Corporation (the "Issuer"), and The Bank of New York, as trustee (the "Trustee")
under the Indenture dated as of January 1, 1996 between the Issuer and the
Trustee (the "Indenture").

            WHEREAS, the Issuer executed and delivered the Indenture to the
Trustee to provide for the future issuance of the Issuer's Securities to be
issued from time to time in one or more series as might be determined by the
Issuer under the Indenture, in an unlimited aggregate principal amount which may
be authenticated and delivered as provided in the Indenture; and

            WHEREAS, Section 2.3 of the Indenture permits the terms of any
series of Securities to be established in an indenture supplemental to the
Indenture; and

            WHEREAS, Section 8.1(d) of the Indenture provided that a
supplemental indenture may be entered into without the consent of any Holders of
Securities to supplement certain provisions of the Indenture; and

            WHEREAS, Section 8.1(e) of the Indenture provides that a
supplemental indenture may be entered into by the Issuer and the Trustee without
the consent of any Holders of the Securities to establish the form and terms of
the Securities of any series; and

            WHEREAS, pursuant to the terms of the Indenture, the Issuer desires
to provide for the establishment of a new series of its Securities to be known
as its 9% subordinated Debentures due June 30, 2030 (the "Notes"), the form and
substance of such Notes and the terms, provisions and conditions thereof to be
set forth as provided in the Indenture and this Fourth Supplemental Indenture;
and

            WHEREAS, Consumers Energy Company Financing IV, a Delaware statutory
business trust (the "Trust"), has offered to the public $125 million aggregate
liquidation amount of its 9% Trust Originated Preferred Securities (the
"Preferred Securities"), representing undivided beneficial interests in the
assets of the Trust and proposes to invest the proceeds from such offering,
together with the proceeds of the issuance and sale by the Trust to the Issuer
of $3,866,000 aggregate liquidation amount of its 9% Trust Originated Common
Securities (together the "Trust Securities"), in $128,866,000 aggregate
principal amount of the Notes; and

            WHEREAS, the Issuer wishes to supplement Section 13.2 of the
Indenture with respect to the Notes and the Preferred Securities; and

            WHEREAS, the Issuer has requested that the Trustee execute and
deliver this Fourth Supplemental Indenture and all requirements necessary to
make this Fourth Supplemental Indenture a valid instrument in accordance with
its terms, and to make the Notes, when executed by the Issuer and authenticated
and delivered by the Trustee, the valid obligations of the Issuer, have been

                                       1

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performed, and the execution and delivery of this Fourth Supplemental Indenture
has been duly authorized in all respects.

            NOW THEREFORE, in consideration of the purchase and acceptance of
the Notes by the Holders thereof, and for the purpose of setting forth, as
provided in the Indenture, the form and substance of the Notes and the terms,
provisions and conditions thereof, the Issuer covenants and agrees with the
Trustee as follows:

                                   ARTICLE I.
                                   DEFINITIONS

SECTION 1.1. Definition of Terms.

            Unless the context otherwise requires:

            (a) a term defined in the Indenture has the same meaning when used
in this Fourth Supplemental Indenture;

            (b) a term defined anywhere in this Fourth Supplemental Indenture
has the same meaning throughout;

            (c) the singular includes the plural and vice versa;

            (d) a reference to a Section or Article is to a Section or Article
of this Fourth Supplemental Indenture;

            (e) headings are for convenience of reference only and do not affect
interpretation;

            (f) the following terms have the meanings given to them in the
Declaration: (i) Clearing Agency; (ii) Delaware Trustee; (iii) Redemption Tax
Opinion; (iv) No Recognition Opinion; (v) Preferred Security Certificate; (vi)
Property Trustee; (vii) Regular Trustees; (viii) Special Event; (ix) Tax Event;
(x) Underwriting Agreement; (xi) Investment Company Event; and (xii)
Distribution;

            (g) the following terms have the meanings given to them in this
Section 1.1(g):

            "Additional Interest" shall have the meaning set forth in Section
2.5.

            "Compounded Interest" shall have the meaning set forth in Section
4.1.

            "Coupon Rate" shall have the meaning set forth in Section 2.5.

            "Declaration" means the Amended and Restated Declaration of Trust of
Consumers Energy Company Financing IV, a Delaware statutory business trust,
dated as of           ,       .

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            "Deferred Interest" shall have the meaning set forth in Section 4.1.

            "Dissolution Event" means that, as a result of the occurrence and
continuation of a Special Event, the Trust is to be dissolved in accordance with
the Declaration, and the Notes held by the Property Trustee are to be
distributed to the holders of the Trust Securities issued by the Trust pro rata
in accordance with the Declaration.

            "Extended Interest Payment Period" shall have the meaning set forth
in Section 4.1.

            "Global Note" shall have the meaning set forth in Section 2.4.

            "Non Book-Entry Preferred Securities" shall have the meaning set
forth in Section 2.4.

            "Optional Redemption Price" shall have the meaning set forth in
Section 3.2.

                                   ARTICLE II.
                    GENERAL TERMS AND CONDITIONS OF THE NOTES

SECTION 2.1. Designation and Principal Amount.

            There is hereby authorized and established a series of unsecured
Securities designated the "9% subordinated Debentures due June 30, 2030,
limited in aggregate principal amount to $125,000,000 (except as contemplated in
Section 2(f)(2) of the Indenture).

SECTION 2.2. Maturity.

            The Maturity Date of the Notes is June 30, 2031.

SECTION 2.3. Form and Payment.

            The Notes shall be issued in fully registered form without interest
coupons. Principal and interest on the Notes issued in certificated form will be
payable, the transfer of such Notes will be registrable and such Notes will be
exchangeable for Notes bearing identical terms and provisions, at the office or
agency of the Trustee in the Borough of Manhattan, the City of New York;
provided, however, that payment of interest may be made at the option of the
Issuer by check mailed to the Holder at such address as shall appear in the
Security Register or by wire transfer to an account maintained by the Holder.
Notwithstanding the foregoing, so long as the Holder of any Notes is the
Property Trustee, the payment of the principal of and interest (including
Compounded Interest and Additional Interest, if any) on such Notes held by the
Property Trustee will be made at such place and to such account as may be
designated by the Property Trustee.

                                       3

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SECTION 2.4. Global Note.

            (a)  In connection with a Dissolution Event,

                  (i) the Notes may be presented to the Trustee by the Property
      Trustee in exchange for a global Note in an aggregate principal amount
      equal to the aggregate principal amount of all outstanding Notes (a
      "Global Note"), to be registered in the name of the Clearing Agency, or
      its nominee, and delivered by the Trustee to the Clearing Agency for
      crediting to the accounts of its participants pursuant to the instructions
      of the Regular Trustees and the Clearing Agency will act as Depository for
      the Notes. The Issuer upon any such presentation, shall execute a Global
      Note in such aggregate principal amount and deliver the same to the
      Trustee for authentication and delivery in accordance with the Indenture
      and this Fourth Supplemental Indenture. Payments on the Notes issued as a
      Global Note will be made to the Depositary; and

                  (ii) if any Preferred Securities are held in non book-entry
      certificated form, the Notes may be presented to the Trustee by the
      Property Trustee and any Preferred Security Certificate which represents
      Preferred Securities other than Preferred Securities held by the Clearing
      Agency or its nominee ("Non Book-Entry Preferred Securities") will be
      deemed to represent beneficial interests in Notes presented to the Trustee
      by the Property Trustee having an aggregate principal amount equal to the
      aggregate liquidation amount of the Non Book-Entry Preferred Securities
      until such Preferred Security Certificates are presented to the Security
      Registrar for transfer or reissuance at which time such Preferred Security
      Certificates will be canceled and a Note, registered in the name of the
      holder of the Preferred Security Certificate or the transferee of the
      holder of such Preferred Security Certificate, as the case may be, with an
      aggregate principal amount equal to the aggregate liquidation amount of
      the Preferred Security Certificate canceled, will be executed by the
      Issuer and delivered to the Trustee for authentication and delivery in
      accordance with the Indenture and this Fourth Supplemental Indenture.

            (b) Except as provided in (c) below, a Global Note may be
transferred, in whole but not in part, only to another nominee of the
Depositary, or to a successor Depositary selected or approved by the Issuer or
to a nominee of such successor Depositary.

            (c) If at any time the Depositary notifies the Issuer that it is
unwilling or unable to continue as Depositary or if at any time the Depositary
for such series shall no longer be registered or in good standing under the
Securities Exchange Act of 1934, as amended, or other applicable statute or
regulation, and a successor Depositary for such series is not appointed by the
Issuer within 90 days after the Issuer receives such notice or becomes aware of
such condition, as the case may be, the Issuer will execute, and, subject to
Section 2.8 of the Indenture, the Trustee, upon written notice from the Issuer,
will authenticate and deliver the Notes in definitive registered form, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Note in exchange for such Global Note. In
addition, the Issuer may at any time determine that the Notes shall no longer be
represented by a Global Note. In such event the Issuer will execute, and

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subject to Section 2.8 of the Indenture, the Trustee, upon receipt of an
Officers' Certificate evidencing such determination by the Issuer, will
authenticate and deliver the Notes in definitive registered form, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Note in exchange for such Global Note. Upon the exchange of
the Global Note for such Notes in definitive registered form, in authorized
denominations, the Global Note shall be canceled by the Trustee. Such Notes in
definitive registered form issued in exchange for the Global Note shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Notes to the
Depositary for delivery to the Persons in whose names such Notes are so
registered.

SECTION 2.5. Interest.

            (a) Each Note will bear interest at the rate of 9% per annum (the
"Coupon Rate") from the original date of issuance until the principal thereof
becomes due and payable, and on any overdue principal and (to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest, at the Coupon Rate, compounded quarterly, payable
(subject to the provisions of Article IV) quarterly in arrears on March 31, June
30, September 30, and December 31 of each year (each, an "Interest Payment
Date," commencing on June 30, 2001), to the Person in whose name such Note or
any predecessor Note is registered, at the close of business on the regular
record date for such interest installment, which, in respect of any Notes of
which the Property Trustee is the Holder or a Global Note, shall be the close of
business on the Business Day next preceding that Interest Payment Date.
Notwithstanding the foregoing sentence, if the Preferred Securities are no
longer in book-entry only form or, except if the Notes are held by the Property
Trustee, the Notes are not represented by a Global Note, the regular record date
for such interest installment shall be the fifteenth day of the month in which
the applicable Interest Payment Date occurs.

            (b) The amount of interest payable for any period will be computed
on the basis of a 360-day year of twelve 30-day months. Except as provided in
the following sentence, the amount of interest payable for any period shorter
than a full quarterly period for which interest is computed, will be computed on
the basis of the actual number of days elapsed in such a 90-day period. In the
event that any date on which interest is payable on the Notes is not a Business
Day, then payment of interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay), except that, if such Business Day is in
the next succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on such date.

            (c) If, at any time while the Property Trustee is the Holder of any
Notes, the Trust or the Property Trustee is required to pay any taxes, duties,
assessments or governmental charges of whatever nature (other than withholding
taxes) imposed by the United States, or any other taxing authority, then, in any
case, the Issuer will pay as additional interest ("Additional Interest") on the
Notes held by the Property Trustee, such additional amounts as shall be required
so that the net

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amounts received and retained by the Trust and the Property Trustee after paying
such taxes, duties, assessments or other governmental charges will be equal to
the amounts the Trust and the Property Trustee would have received had no such
taxes, duties, assessments or other governmental charges been imposed.

                                  ARTICLE III.
                             REDEMPTION OF THE NOTES

SECTION 3.1. Special Event Redemption.

            If (a) a Tax Event has occurred and is continuing and (i) the Issuer
has received a Redemption Tax Opinion, or (ii) The Regular Trustees shall have
been informed by tax counsel that a No Recognition Opinion cannot be delivered
to the Trust, or (b) an Investment Company Event has occurred and is continuing,
then, notwithstanding Section 3.2(a) but subject to Section 3.2(b) and Article
Eleven of the Indenture, the Issuer shall have the right upon not less than 30
days' nor more than 60 days' notice to the Holders of the Notes to redeem the
Notes, in whole or in part, for cash within 90 days' following the occurrence of
such Special Event (the "90 Day Period") at a redemption price equal to 100% of
the principal amount to be redeemed plus any accrued and unpaid interest thereon
to the date of such redemption (the "Redemption Price"), provided that, if at
the time there is available to the Issuer or the Trust the opportunity to
eliminate, within the 90 Day Period, the Special Event by taking some
ministerial action ("Ministerial Action"), such as filing a form or making an
election, or pursuing some other similar reasonable measure which has no adverse
effect on the Issuer, the Trust or the Holders of the Trust Securities issued by
the Trust, the Issuer shall pursue such Ministerial Action in lieu of
redemption, and, provided, further, that the Issuer shall have no right to
redeem the Notes while the Trust is pursuing any Ministerial Action pursuant to
its obligations under the Declaration. The Redemption Price shall be paid prior
to 12:00 noon, New York time, on the date of such redemption or such earlier
time as the Issuer determines, and the Issuer shall deposit with the Trustee an
amount sufficient to pay the Redemption Price by 10:00 a.m., New York time, on
the date such Redemption Price is to be paid.

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SECTION 3.2. Optional Redemption by Issuer.

            (a) Subject to the provisions of Section 3.2(b) and to the
provisions of Article Eleven of the Indenture, the Issuer shall have the right
to redeem the Notes, in whole or in part, from time to time, on or after [May
__,         ], at a redemption price equal to 100% of the principal amount to be
redeemed plus any accrued and unpaid interest thereon to the date of such
redemption (the "Optional Redemption Price"). Any redemption pursuant to this
paragraph will be made upon not less than 30 days' nor more than 60 days' notice
to the Holder of the Notes, at the Optional Redemption Price. If the Notes are
only partially redeemed pursuant to this Section 3.2, the Notes will be redeemed
on a pro rata basis; provided that, if at the time of redemption the Notes are
registered as a Global Note, the Depository shall determine, in accordance with
its procedures, the principal amount of such Notes held by each Holder of Notes
to be redeemed. The Optional Redemption Price shall be paid prior to 12:00 noon,
New York time, on the date of such redemption or at such earlier time as the
Issuer determines and the Issuer shall deposit with the Trustee an amount
sufficient to pay the Optional Redemption Price by 10:00 a.m., New York time, on
the date such Optional Redemption Price is to be paid.

            (b) If a partial redemption of the Notes would result in the
delisting of the Preferred Securities from any national securities exchange or
other organization on which the Preferred Securities are then listed, the Issuer
shall not be permitted to effect such partial redemption and may only redeem the
Notes in whole.

SECTION 3.3.      No Sinking Fund.

            The Notes are not entitled to the benefit of any sinking fund.

                                       7

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                                   ARTICLE IV.
                      EXTENSION OF INTEREST PAYMENT PERIOD

SECTION 4.1. Extension of Interest Payment Period.

            The Issuer shall have the right, at any time and from time to time
during the term of the Notes, to defer payments of interest by extending the
interest payment period of such Notes for a period not exceeding 20 consecutive
quarters (the "Extended Interest Payment Period"), during which Extended
Interest Payment Period no interest shall be due and payable; provided that, no
Extended Interest Payment Period may extend beyond the Maturity Date. To the
extent permitted by applicable law, interest, the payment of which has been
deferred because of the extension of the interest payment period pursuant to
this Section 4.1, will bear interest thereon at the Coupon Rate compounded
quarterly for each quarter of the Extended Interest Payment Period ("Compounded
Interest"). At the end of the Extended Interest Payment Period, the Issuer shall
pay all interest accrued and unpaid on the Notes, including any Additional
Interest and Compounded Interest (together, "Deferred Interest") that shall be
payable to the Holders of the Notes in whose names the Notes are registered in
the Security Register on the First record date after the end of the Extended
Interest Payment Period. Prior to the termination of any Extended Interest
Payment Period, the Issuer may further extend such period, provided that such
period together with all such further extensions thereof shall not exceed 20
consecutive quarters. Upon the termination of any Extended Interest Payment
Period and upon the payment of all Deferred Interest then due, the Issuer may
commence a new Extended Interest Payment Period, subject to the foregoing
requirements. No interest shall be due and payable during an Extended Interest
Payment Period, except at the end thereof, but the Issuer may prepay at any time
all or any portion of the interest accrued during an Extended Interest Payment
Period.

            The limitations set forth in Section 3.5 of the Indenture shall
apply during any Extended Interest Payment Period.

SECTION 4.2. Notice of Extension.

            (a) If the Property Trustee is the only registered Holder of the
Notes at the time the Issuer elects an Extended Interest Payment Period, the
Issuer shall give written notice to the Regular Trustees, the Property Trustee
and the Trustee of its election of such Extended Interest Payment Period one
Business Day before the earlier of (i) the next succeeding date on which
Distributions on the Trust Securities issued by the Trust are payable, or (ii)
the date the Trust is required to give notice of the record date, or the date
such Distributions are payable, to the New York Stock Exchange or other
applicable self-regulatory organization or to holders of the Preferred
Securities, but in any event at least one Business Day before such record date.

            (b) If the Property Trustee is not the only Holder of the Notes at
the time the Issuer elects an Extended Interest Payment Period, the Issuer shall
give the Holders of the Notes and the Trustee written notice of its election of
such Extended Interest Payment Period one Business Days before the

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earlier of (i) the next succeeding Interest Payment Date, or (ii) the date the
Issuer is required to give notice of the record or payment date of such interest
payment to the New York Stock Exchange or other applicable self-regulatory
organization or to Holders of the Notes.

            (c) The quarter in which any notice is given pursuant to paragraphs
(a) or (b) of this Section 4.2 shall be counted as one of the 20 quarters
permitted in the maximum Extended Interest Payment Period permitted under
Section 4.1.

                                   ARTICLE V.
                                    EXPENSES

SECTION 5.1. Payment of Expenses.

            In connection with the offering, sale and issuance of the Notes to
the Property Trustee and in connection with the sale of the Trust Securities by
the Trust, the Issuer, in its capacity as borrower with respect to the Notes,
shall:

            (a) pay all costs and expenses relating to the offering, sale and
issuance of the Notes, including commissions to the underwriters payable
pursuant to the Underwriting Agreement and the Pricing Agreements, and
compensation of the Trustee under the Indenture in accordance with the
provisions of Section 6.6 of the Indenture;

            (b) pay all costs and expenses of the Trust (including, but not
limited to, costs and expenses relating to the organization of the Trust, the
offering, sale and issuance of the Trust Securities (including commissions to
the underwriters in connection therewith), the fees and expenses of the Property
Trustee and the Delaware Trustee, the costs and expenses relating to the
operation of the Trust, including without limitation, costs and expenses of
accountants, attorneys, statistical or bookkeeping services, expenses for
printing and engraving and computing or accounting equipment, paying agent(s),
registrar(s), transfer agent(s), duplicating, travel and telephone and other
telecommunications expenses and costs and expenses incurred in connection with
the acquisition, financing, and disposition of Trust assets);

            (c) be primarily liable for any indemnification obligations arising
with respect to the Declaration; and

            (d) pay any and all taxes (other than United States withholding
taxes attributable to the Trust or its assets) and all liabilities, costs and
expenses with respect to such taxes of the Trust.

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SECTION 5.2. Payment Upon Resignation or Removal.

            Upon termination of this Fourth Supplemental Indenture or the
Indenture or the removal or resignation of the Trustee pursuant to Section 6.10
of the Indenture, the Issuer shall pay to the Trustee all amounts accrued to the
date of such termination, removal or resignation. Upon termination of the
Declaration or the removal or resignation of the Delaware Trustee or the
Property Trustee, as the case may be, pursuant to Section 5.6 of the
Declaration, the Issuer shall pay to the Delaware Trustee or the Property
Trustee, as the case may be, all amounts accrued to the date of such
termination, removal or resignation.

                                   ARTICLE VI.
                                  SUBORDINATION

SECTION 6.1. Agreement to Subordinate.

            The Issuer covenants and agrees, and each Holder of Notes issued
hereunder, by such Holder's acceptance thereof likewise covenants and agrees,
that pursuant to Section 2.3(f)(9) of the Indenture all Notes shall be issued as
Subordinated Securities subject to the provisions of Article Twelve of the
Indenture and this Article VI; and each Holder of a Note by its acceptance
thereof accepts and agrees to be bound by such provisions.

                                  ARTICLE VII.
                          COVENANT TO LIST ON EXCHANGE

SECTION 7.1. Listing on an Exchange.

            In connection with the distribution of the Notes to the holders of
the Preferred Securities upon a Dissolution Event, the Issuer will use its best
efforts to list such Notes on the New York Stock Exchange or on such other
exchange as the Preferred Securities are then listed.

                                  ARTICLE VIII.
                                  FORM OF NOTES

SECTION 8.1. Form of Note.

            The Notes and the Trustee's Certificate of Authentication to be
endorsed thereon are to be substantially in the following forms and the Notes
shall have such additional terms as may be set forth in such form:

                             (FORM OF FACE OF NOTE)

                                       10

<PAGE>

            [IF THE NOTE IS TO BE A GLOBAL NOTES, INSERT - This Note is a Global
Note within the meaning of the Indenture hereinafter referred to, and is
registered in the name of, a Depositary or a nominee of a Depositary. This Note
is exchangeable for Notes registered in the name of a person other than the
Depositary or its nominee only in the limited circumstances described in the
Indenture, and no transfer of this Note (other than a transfer of this Note as a
whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary) may be
registered except in limited circumstances.

            Unless this Note is presented by an authorized representative of The
Depository Trust Company (55 Water Street, New York, New York) to the issuer or
its agent for registration of transfer, exchange or payment, and any Note issued
is registered in the name of Cede & Co. or such other name as requested by an
authorized representative of The Depository Trust Company and any payment hereon
is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede & Co.,
has an interest herein.]

No.
       $

CUSIP NO. 20151E202

                            CONSUMERS ENERGY COMPANY

                           9% SUBORDINATED DEBENTURES
                               DUE JUNE 30, 2031

            Consumers Energy Company, a Michigan corporation (the "Issuer",
     which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
_____________, or registered assigns, the principal sum of ($128,866,000) on
June 30, 2001, and to pay interest on said principal sum from May 31, 2001, or
from the most recent interest payment date (each such date, an "Interest Payment
Date") to which interest has been paid or duly provided for, quarterly (subject
to deferral as set forth herein) in arrears on March 31, June 30, September 30
and December 31 of each year commencing June 30, 2001 at the rate of 9% per
annum until the principal hereof shall have become due and payable, and on any
overdue principal and premium, if any, and (without duplication and to the
extent that payment of such interest is enforceable under applicable law) on any
overdue installment of interest at the same rate per annum compounded quarterly.
The amount of interest payable on any Interest Payment Date shall be computed on
the basis of a 360-day year of twelve 30-day months. In the event that any date
on which interest is payable on this Note is not a Business Day, then payment of
interest payable on such date will be made on the next succeeding day that is a
Business Day (and without any interest or

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other payment in respect of any such delay), except that, if such Business Day
is in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such date. The interest installment so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in the
Indenture, be paid to the person in whose name this Note (or one or more
Predecessor Securities, as defined in said Indenture) is registered at the close
of business on the regular record date for such interest installment, which
shall be the close of business on the Business Day next preceding such Interest
Payment Date. [IF PURSUANT TO THE PROVISIONS OF THE INDENTURE THE DEBENTURES ARE
NO LONGER REPRESENTED BY A GLOBAL NOTE -- which shall be the close of business
on the 15th day of the month in which such Interest Payment Date occurs.] If and
to the extent the Issuer shall default in the payment of the interest due on
such Interest Payment Date, interest shall be paid to the person in whose name
this Note is registered at the close of business on a subsequent record date
(which shall not be less than five Business Days prior to the date of payment of
such defaulted interest) established by notice given by mail by or on behalf of
the Issuer to the Holder of this Note not less than 15 days preceding such
subsequent Record Date. The principal of (and premium, if any) and the interest
on this Note shall be payable at the office or agency of the Trustee in the
Borough of Manhattan, the City of New York maintained for that purpose in any
coin or currency of the United States of America that at the time is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Issuer by check mailed to the
registered Holder at such address as shall appear in the Security Register or by
wire transfer to an account maintained by the Holder. Notwithstanding the
foregoing, so long as the Holder of this Note is the Property Trustee, the
payment of the principal of (and premium, if any) and interest on this Note will
be made at such place and to such account as may be designated by the Property
Trustee.

            The indebtedness evidenced by this Note is, to the extent provided
in the Indenture, subordinate and junior in right of payment to the prior
payment in full of all Senior Indebtedness, and this Note is issued subject to
the provisions of the Indenture with respect thereto. Each Holder of this Note,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination
so provided and (c) appoints the Trustee his or her attorney-in-fact for any and
all such purposes. Each Holder hereof, by his or her acceptance hereof, hereby
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such holder upon
said provisions.

            This Note shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

            The provisions of this Note are continued on the reverse side hereof
and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place.

                                       12

<PAGE>

            IN WITNESS WHEREOF, the Issuer has caused this instrument to be
executed.

Dated

                                      Consumers Energy Company

[Seal]                                By:
                                      Name:
                                      Title

Attest:

By:
Name:
Title:

                     (FORM OF CERTIFICATE OF AUTHENTICATION)

                          CERTIFICATE OF AUTHENTICATION

            This is one of the Securities of the series of Securities described
in the within-mentioned Indenture.

[                    ]

                                       --------------------------------
                                       as Trustee

                                       By
                                         Authorized Signatory

                            (FORM OF REVERSE OF NOTE)

            This Note is one of a duly authorized series of Securities of the
Issuer (herein sometimes referred to as the "Notes"), specified in the
Indenture, all issued or to be issued in one or more series under and pursuant
to an Indenture dated as of January 1, 1996, duly executed and delivered between
the Issuer and The Bank of New York, a New York banking corporation, as Trustee
(the "Trustee"), as supplemented by certain supplemental indentures, including
the Fourth Supplemental Indenture

                                       13

<PAGE>

dated as of May __, 2001, between the Issuer and the Trustee (the Indenture as
so supplemented, the "Indenture"), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Issuer and the Holders of the Notes. By the terms of the Indenture,
the Notes are issuable in series that may vary as to amount, date of maturity,
rate of interest and in other respects as provided in the Indenture. This series
of Notes is limited in aggregate principal amount as specified in said Third
Supplemental Indenture.

            The Issuer shall have the right to redeem this Note at the option of
the Issuer, without premium or penalty, in whole or in part at any time on or
after [      ] or at any time in certain circumstances upon the occurrence of a
Special Event, at a redemption price equal to 100% of the principal amount plus
any accrued but unpaid interest, to the date of such redemption. Any redemption
pursuant to this paragraph will be made upon not less than 30 days nor more than
60 days' notice. If the Notes are only partially redeemed by the Issuer pursuant
to an Optional Redemption, the Notes will be redeemed pro rata.

            In the event of redemption of this Note in part only, a new Note or
Notes of this series for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the cancellation hereof.

            In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Notes may be declared,
and upon such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

            The Indenture contains provisions permitting the Issuer and the
Trustee, with the consent of the Holders of not less than a majority in
aggregate principal amount of the Notes and other Indenture securities of each
series affected at the time Outstanding and affected (voting as one class), as
defined in the Indenture, to execute supplemental indentures for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or of modifying in
any manner the rights of the Holders of the Notes; provided, however, that the
Company and the Trustee may not, without the consent of the Holder of each Note
then Outstanding and affected thereby: (a) change the time of payment of the
principal (or any installment) of any Note, or reduce the principal amount
thereof, or reduce the rate or change the time of payment of interest thereon,
or impair the right to institute suit for the enforcement of any payment on any
Note when due or (b) reduce the percentage in principal amount of the Notes, the
consent of whose Holders is required for any such modification or for any waiver
provided for in the Indenture. The Indenture also contains provisions providing
that prior to the acceleration of the maturity of any Note or other securities
outstanding under the Indenture, the Holders of a majority in aggregate
principal amount of Notes of and other Securities Outstanding under the
Indenture with respect to which a default or/an Event of Default shall have
occurred and be continuing (voting as one class) may on behalf of the Holders of
all such affected Securities (including the Notes) waive any past default and
its consequences, except a default or an Event of Default in respect of a

                                       14

<PAGE>

covenant or provision of the Indenture or of any Note or other Security which
cannot be modified or amended without the consent of the Holder of each Note or
other Security affected. Any such consent or waiver by the registered Holder of
this Note (unless revoked as provided in the Indenture) shall be conclusive and
binding upon such Holder and upon all future Holders and owners of this Note and
of any Note issued in exchange herefor or in place hereof (whether by
registration of transfer or otherwise), irrespective of whether or not any
notation of such consent or waiver is made upon this Note.

            No reference herein to the Indenture and no provision of this Note
or of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and premium, if any, and
interest on this Note at the time and place and at the rate and in the money
herein prescribed.

            The Issuer shall have the right at any time during the term of the
Notes and from time to time to extend the interest payment period of such Notes
for up to 20 consecutive quarters (an "Extended Interest Payment Period"), at
the end of which period the Issuer shall pay all interest then accrued and
unpaid (together with interest thereon at the rate specified for the Notes to
the extent that payment of such interest is enforceable under applicable law).
Before the termination of any such Extended Interest Payment Period, the Issuer
may further extend such Extended Interest Payment Period, provided that such
Extended Interest Payment Period together with all such further extensions
thereof shall not exceed 20 consecutive quarters. At the termination of any such
Extended Interest Payment Period and upon the payment of all accrued and unpaid
interest and any additional amounts then due, the Issuer may commence a new
Extended Interest Payment Period.

            As provided in the Indenture and subject to certain limitations
therein set forth, this Note is transferable by the registered Holder hereof on
the Security Register of the Issuer, upon surrender of this Note for
registration of transfer at the office or agency of the Trustee in the City and
State of New York accompanied by a written instrument or instruments of transfer
in form satisfactory to the Issuer or the Trustee duly executed by the
registered Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Notes of authorized denominations and for the same
aggregate principal amount and series will be issued to the designated
transferee or transferees. No service charge will be made for any such transfer,
but the Issuer may require payment of a sum sufficient to cover any tax or other
governmental charge payable in relation thereto.

            Prior to due presentment for registration of transfer of this Note,
the Issuer, the Trustee, any paying agent and the Security Registrar may deem
and treat the registered holder hereof as the absolute owner hereof (whether or
not this Note shall be overdue and notwithstanding any notice of ownership or
writing hereon made by anyone other than the Security Registrar) for the purpose
of receiving payment of or on account of the principal hereof and premium, if
any, and interest due hereon and for all other purposes, and neither the Issuer
nor the Trustee nor any paying agent nor any Security Registrar shall be
affected by any notice to the contrary.

                                       15

<PAGE>

            No recourse shall be had for the payment of the principal of or the
interest on this Note, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator,
stockholder, officer or director, past, present or future, as such, of the
Issuer or of any predecessor or successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issuance hereof, expressly waived and
released.

            Notes of this series so issued are issuable only in registered form
without coupons in denominations of $25 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations herein and therein
set forth, Notes of this series so issued are exchangeable for a like aggregate
principal amount of Notes of this series in authorized denominations, as
requested by the Holder surrendering the same.

            All terms used in this Note that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                              [END OF FORM OF NOTE]

                                   ARTICLE IX.
                             ORIGINAL ISSUE OF NOTES

SECTION 9.1. Original Issue of Notes.

            Notes in the aggregate principal amount of $128,866,000 may, upon
execution of this Fourth Supplemental Indenture, be executed by the Issuer and
delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Notes to or upon the written order of the Issuer,
in accordance with Section 2.4 of the Indenture.

                                       16
<PAGE>

                                   ARTICLE X.
                                  MISCELLANEOUS

SECTION 10.1 Provisions of Indenture for the Sole Benefit of Parties and Holders
             of Trust Securities.

            Notwithstanding Section 13.2 of the Indenture, for so long as any
Trust Securities remain outstanding, the Issuer's obligations under the
Indenture and this Fourth Supplemental Indenture will also be for the benefit of
the holders of the Trust Securities, and the Issuer acknowledges and agrees that
such holders will be entitled to enforce certain payment obligations under the
Notes directly against the Issuer to the extent provided in the Declaration.

SECTION 10.2 Ratification of Indenture.

            The Indenture, as supplemented by this Fourth Supplemental
Indenture, is in all respects ratified and confirmed, and this Fourth
Supplemental Indenture shall be deemed part of the Indenture in the manner and
to the extent herein and therein provided.

SECTION 10.3. Trustee Not Responsible for Recitals.

            The recitals herein contained are made by the Issuer and not by the
Trustee, and the Trustee assumes no responsibility for the correctness thereof.
The Trustee makes no representation as to the validity or sufficiency of this
Fourth Supplemental Indenture.

SECTION 10.4. Governing Law.

            This Fourth Supplemental Indenture and each Note shall be deemed to
be a contract made under the internal laws of the State of Michigan, and for all
purposes shall be construed in accordance with the laws of said State; provided,
however, that the rights, duties and obligations of the Trustee are governed and
construed in accordance with the laws of the State of New York.

SECTION 10.5. Separability.

            In case any one or more of the provisions contained in this Fourth
Supplemental Indenture or in the Notes shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Fourth
Supplemental Indenture or of the Notes, but this Fourth Supplemental Indenture
and the Notes shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

                                       17

<PAGE>

SECTION 10.6. Counterparts.

            This Fourth Supplemental Indenture may be executed in any number of
counterparts each of which shall be an original, but such counterparts shall
together constitute but one and the same instrument.

                                       18

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Fourth
Supplemental Indenture to be duly executed on the date or dates indicated in the
acknowledgments and as of the day and year first above written.

                                    Consumers Energy Company

                                    By: /s/ Alan M. Wright
                                        ------------------------------------
                                        Name:  Alan M. Wright
                                        Title: Executive Vice President,
                                               Chief Financial Officer and Chief
                                               Administrative Officer

[Seal]
Attest:

By: /s/ Adam Norlander
    ---------------------------

                                    The Bank of New York, as Trustee

                                    By: /s/ Paul Schmalzel
                                        ---------------------------------
                                        Name:  Paul Schmalzel
                                        Title:  Vice President

                                       19

<PAGE>

STATE OF MICHIGAN                )
                )ss.
COUNTY OF WAYNE                  )

      On the 31st day of May, 2001, before me personally came Alan M. Wright, to
me known, who, being by me duly sworn, did depose and say that he resides at Ann
Arbor, Michigan; that he is Executive Vice President, Chief Financial Officer
and Chief Administrative Officer of Consumers Energy Company, one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate; that it was so affixed by authority of the Board of Directors of
said corporation; and that he signed his name thereto by like authority.

[Notarial Seal]

/s/ Leslie Higdon
--------------------------------------
Notary Public, Wayne County, Michigan
My Commission Expires: 10/05/04

                                       20<PAGE>

                                 EXHIBIT (4)(b)
<PAGE>
                                                                    EXHIBIT 4(b)

                      SEVENTY-NINTH SUPPLEMENTAL INDENTURE

                        Providing among other things for

                              FIRST MORTGAGE BONDS,

                   6.25% Senior Notes, due September 15, 2006

                                 --------------

                         Dated as of September 26, 2001

                                 --------------

                            CONSUMERS ENERGY COMPANY

                                       TO

                            THE CHASE MANHATTAN BANK,

                                     TRUSTEE

                                                        Counterpart ______ of 80

<PAGE>

                  SEVENTY-NINTH SUPPLEMENTAL INDENTURE, dated as of September
26, 2001 (herein sometimes referred to as "this Supplemental Indenture"), made
and entered into by and between CONSUMERS ENERGY COMPANY, a corporation
organized and existing under the laws of the State of Michigan, with its
principal executive office and place of business at 212 West Michigan Avenue, in
Jackson, Jackson County, Michigan 49201, formerly known as Consumers Power
Company, (hereinafter sometimes referred to as the "Company"), and THE CHASE
MANHATTAN BANK, a corporation organized and existing under the laws of the State
of New York, with its corporate trust offices at 450 W. 33rd Street, in the
Borough of Manhattan, The City of New York, New York 10001 (hereinafter
sometimes referred to as the "Trustee"), as Trustee under the Indenture dated as
of September 1, 1945 between Consumers Power Company, a Maine corporation
(hereinafter sometimes referred to as the "Maine corporation"), and City Bank
Farmers Trust Company (Citibank, N.A., successor, hereinafter sometimes referred
to as the "Predecessor Trustee"), securing bonds issued and to be issued as
provided therein (hereinafter sometimes referred to as the "Indenture"),

                  WHEREAS at the close of business on January 30, 1959, City
Bank Farmers Trust Company was converted into a national banking association
under the title "First National City Trust Company"; and

                  WHEREAS at the close of business on January 15, 1963, First
National City Trust Company was merged into First National City Bank; and

                  WHEREAS at the close of business on October 31, 1968, First
National City Bank was merged into The City Bank of New York, National
Association, the name of which was thereupon changed to First National City
Bank; and

                  WHEREAS effective March 1, 1976, the name of First National
City Bank was changed to Citibank, N.A.; and

                  WHEREAS effective July 16, 1984, Manufacturers Hanover Trust
Company succeeded Citibank, N.A. as Trustee under the Indenture; and

                  WHEREAS effective June 19, 1992, Chemical Bank succeeded by
merger to Manufacturers Hanover Trust Company as Trustee under the Indenture;
and

                  WHEREAS effective July 15, 1996, The Chase Manhattan Bank
(National Association), merged with and into Chemical Bank which thereafter was
renamed The Chase Manhattan Bank as Trustee under the Indenture; and

                  WHEREAS the Indenture was executed and delivered for the
purpose of securing such bonds as may from time to time be issued under and in
accordance with the terms of the Indenture, the aggregate principal amount of
bonds to be secured thereby being limited to $5,000,000,000 at any one time
outstanding (except as provided in Section 2.01 of the Indenture), and the
Indenture describes and sets forth the property conveyed thereby and is filed in
the Office of the Secretary of State of the State of Michigan and is of record
in the Office of the Register of Deeds of each county in the State of Michigan
in which this Supplemental Indenture is to be recorded; and

                  WHEREAS the Indenture has been supplemented and amended by
various indentures supplemental thereto, each of which is filed in the Office of
the Secretary of State of the State of Michigan and is of record in the Office
of the Register of Deeds of each county in the State of Michigan in which this
Supplemental Indenture is to be recorded; and

                  WHEREAS the Company and the Maine corporation entered into an
Agreement of Merger and Consolidation, dated as of February 14, 1968, which
provided for the Maine corporation to merge into the Company; and

<PAGE>

                  WHEREAS the effective date of such Agreement of Merger and
Consolidation was June 6, 1968, upon which date the Maine corporation was merged
into the Company and the name of the Company was changed from "Consumers Power
Company of Michigan" to "Consumers Power Company"; and

                  WHEREAS the Company and the Predecessor Trustee entered into a
Sixteenth Supplemental Indenture, dated as of June 4, 1968, which provided,
among other things, for the assumption of the Indenture by the Company; and

                  WHEREAS said Sixteenth Supplemental Indenture became effective
on the effective date of such Agreement of Merger and Consolidation; and

                  WHEREAS the Company has succeeded to and has been substituted
for the Maine corporation under the Indenture with the same effect as if it had
been named therein as the mortgagor corporation; and

                  WHEREAS effective March 11, 1997, the name of Consumers Power
Company was changed to Consumers Energy Company; and

                  WHEREAS, the Company has entered into an Indenture dated as of
February 1, 1998 ("Senior Note Indenture") with The Chase Manhattan Bank, as
trustee ("Senior Note Trustee") providing for the issuance of notes thereunder,
and pursuant to such Senior Note Indenture the Company has agreed to issue to
the Senior Note Trustee, as security for the notes ("Senior Notes") to be issued
thereunder, a new series of bonds under the Indenture at the time of
authentication of each series of Senior Notes issued under such Senior Note
Indenture; and

                  WHEREAS, for such purposes the Company desires to issue: a new
series of bonds, to be designated First Mortgage Bonds, 6.25% Senior Notes, due
September 15, 2006, each of which bonds shall also bear the descriptive title
"First Mortgage Bond" (hereinafter provided for and hereinafter sometimes
referred to as the "2006 Note Bonds"), the bonds of which series are to be
issued as registered bonds without coupons and are to bear interest at the rate
per annum specified herein and are to mature September 15, 2006; and

                  WHEREAS, the 2006 Note Bonds shall be issued to the Senior
Note Trustee in connection with the issuance by the Company of its 6.25% Senior
Notes due September 15, 2006 (the "2006 Notes"); and

                  WHEREAS, each of the registered bonds without coupons of the
2006 Note Bonds and the Trustee's Authentication Certificate thereon are to be
substantially in the following form, to wit:

                                       2

<PAGE>

                [FORM OF REGISTERED BOND OF THE 2006 NOTE BONDS]

                                     [FACE]

                  NOTWITHSTANDING ANY PROVISIONS HEREOF OR IN THE INDENTURE,
THIS BOND IS NOT ASSIGNABLE OR TRANSFERABLE EXCEPT AS PERMITTED OR REQUIRED BY
SECTION 4.04 OF THE INDENTURE, DATED AS OF FEBRUARY 1, 1998 BETWEEN CONSUMERS
ENERGY COMPANY AND THE CHASE MANHATTAN BANK, AS TRUSTEE.

                            CONSUMERS ENERGY COMPANY

                               FIRST MORTGAGE BOND
                               6.25% SENIOR NOTES
                             DUE SEPTEMBER 15, 2006

No. 1                             $350,000,000

                  CONSUMERS ENERGY COMPANY, a Michigan corporation (hereinafter
called the "Company"), for value received, hereby promises to pay to The Chase
Manhattan Bank, as trustee under the Senior Note Indenture hereinafter referred
to, or registered assigns, the principal sum of Three Hundred Fifty Million
Dollars on September 15, 2006, and to pay to the registered holder hereof
interest on said sum from the latest semi-annual interest payment date to which
interest has been paid on the bonds of this series preceding the date hereof,
unless the date hereof be an interest payment date to which interest is being
paid, in which case from the date hereof, or unless the date hereof is prior to
March 15, 2002, in which case from September 26, 2001, (or if this bond is dated
between the record date for any interest payment date and such interest payment
date, then from such interest payment date, provided, however, that if the
Company shall default in payment of the interest due on such interest payment
date, then from the next preceding semi-annual interest payment date to which
interest has been paid on the bonds of this series, or if such interest payment
date is March 15, 2002, from September 26, 2001), at 6.25% per annum through
September 15, 2006; provided, however, the interest rate is subject to
adjustment as provided in the 2006 Notes, defined below.

                  Under an Indenture dated as of February 1, 1998 (hereinafter
sometimes referred to as the "Senior Note Indenture"), between Consumers Energy
Company and The Chase Manhattan Bank, as trustee (hereinafter sometimes called
the "Senior Note Trustee"), the Company will issue, concurrently with the
issuance of this bond, an issue of notes under the Senior Note Indenture
entitled 6.25% Senior Notes, due September 15, 2006 (the "2006 Notes"). Pursuant
to Article IV of the Senior Note Indenture, this bond is issued to the Senior
Note Trustee to secure any and all obligations of the Company under the 2006
Notes and any other series of senior notes from time to time outstanding under
the Senior Note Indenture. Payment of principal of, or premium, if any, or
interest on, the 2006 Notes shall constitute payments on this bond as further
provided herein and in the Supplemental Indenture.

                  The provisions of this bond are continued on the reverse
hereof and such continued provisions shall for all purposes have the same effect
as though fully set forth at this place.

                  This bond shall not be valid or become obligatory for any
purpose unless and until it shall have been authenticated by the execution by
the Trustee or its successor in trust under the Indenture of the certificate
hereon.

                                       3

<PAGE>

                  IN WITNESS WHEREOF, Consumers Energy Company has caused this
bond to be executed in its name by its Chairman of the Board, its President or
one of its Vice Presidents by his signature or a facsimile thereof, and its
corporate seal or a facsimile thereof to be affixed hereto or imprinted hereon
and attested by its Secretary or one of its Assistant Secretaries by his
signature or a facsimile thereof.

                                         CONSUMERS ENERGY COMPANY,

Dated:                                   By _______________________________

Attest:  _________________________

                      TRUSTEE'S AUTHENTICATION CERTIFICATE

                  This is one of the bonds, of the series designated therein,
described in the within-mentioned Indenture.

                                         THE CHASE MANHATTAN BANK, Trustee

                                         By ____________________________________
                                                      Authorized Officer

                                       4

<PAGE>

                                    [REVERSE]

                            CONSUMERS ENERGY COMPANY

                               FIRST MORTGAGE BOND
                               6.25% SENIOR NOTES
                             DUE SEPTEMBER 15, 2006

                  The interest payable on any March 15 and September 15 will,
subject to certain exceptions provided in the Indenture hereinafter mentioned,
be paid to the person in whose name this bond is registered at the close of
business on the record date, which shall be March 1 or September 1, as the case
may be, next preceding such interest payment date, or, if such March 1 or
September 1 shall be a legal holiday or a day on which banking institutions in
the City of New York, New York or the City of Detroit, Michigan are authorized
by law to close, the next succeeding day which shall not be a legal holiday or a
day on which such institutions are so authorized to close. The principal of and
the premium, if any, and the interest on this bond shall be payable at the
office or agency of the Company in the City of Jackson, Michigan designated for
that purpose, in any coin or currency of the United States of America which at
the time of payment is legal tender for public and private debts.

                  The 2006 Notes are subject to redemption described therein. In
the event the redemption is exercised as set forth in the 2006 Notes, interest
on this bond shall cease to accrue on the redemption date in accordance with
2006 Notes. The Senior Note Trustee shall give written notice to the Trustee
that the redemption has been exercised. In the event the 2006 Notes are redeemed
as provided therein, upon redemption thereof, this bond shall be deemed to be
redeemed on the respective dates for, in the principal amounts to be redeemed
of, and for the redemption prices for the 2006 Notes.

                  Upon payment of the principal of and interest by the Company
on the 2006 Notes, whether at maturity or prior to maturity by redemption or
otherwise or upon provision for the payment thereof having been made in
accordance with Section 5.01(a) of the Senior Note Indenture, the 2006 Note
Bonds in a principal amount equal to the principal amount of such 2006 Notes and
having both a corresponding maturity date and interest rate shall, to the extent
of such payment of principal and interest, be deemed paid and the obligation of
the Company thereunder to make such payment shall be discharged to such extent
and, in the case of the payment of principal (and premium, if any) this bond
shall be surrendered to the Company for cancellation as provided in Section 4.08
of the Senior Note Indenture. The Trustee may at anytime and all times
conclusively assume that the obligation of the Company to make payments with
respect to the principal of and interest on this bond, so far as such payments
at the time have become due, has been fully satisfied and discharged pursuant to
the foregoing sentence unless and until the Trustee shall have received a
written notice from the Senior Note Trustee signed by one of its officers
stating (i) that timely payment of, or premium or interest on, the 2006 Notes
has not been made, (ii) that the Company is in arrears as to the payments
required to be made by it to the Senior Note Trustee pursuant to the Senior Note
Indenture, and (iii) the amount of the arrearage.

                  For purposes of Section 4.09 of the Senior Note Indenture,
this bond shall be deemed to be the "related series of Senior Note First
Mortgage Bonds" in respect of the 2006 Notes.

                  This bond is one of the bonds issued and to be issued from
time to time under and in accordance with and all secured by an Indenture dated
as of September 1, 1945, given by the Company (or its predecessor, Consumers
Power Company, a Maine corporation) to City Bank Farmers Trust Company (The
Chase Manhattan Bank, successor) (hereinafter sometimes referred to as the
"Trustee"), and indentures supplemental thereto, heretofore or hereafter
executed, to which indenture and indentures supplemental thereto (hereinafter
referred to collectively as the "Indenture") reference is hereby made for a
description of the property mortgaged and pledged, the nature and extent of the
security and the rights, duties and immunities thereunder of the Trustee and the
rights of the holders of said bonds and of the Trustee and of the Company in

                                       5

<PAGE>

respect of such security, and the limitations on such rights. By the terms of
the Indenture, the bonds to be secured thereby are issuable in series which may
vary as to date, amount, date of maturity, rate of interest and in other
respects as provided in the Indenture.

                  The Indenture contains provisions permitting the Company and
the Trustee, with the consent of the holders of not less than seventy-five per
centum in principal amount of the bonds (exclusive of bonds disqualified by
reason of the Company's interest therein) at the time outstanding, including, if
more than one series of bonds shall be at the time outstanding, not less than
sixty per centum in principal amount of each series affected, to effect, by an
indenture supplemental to the Indenture, modifications or alterations of the
Indenture and of the rights and obligations of the Company and the rights of the
holders of the bonds and coupons; provided, however, that no such modification
or alteration shall be made without the written approval or consent of the
holder hereof which will (a) extend the maturity of this bond or reduce the rate
or extend the time of payment of interest hereon or reduce the amount of the
principal hereof, or (b) permit the creation of any lien, not otherwise
permitted, prior to or on a parity with the lien of the Indenture, or (c) reduce
the percentage of the principal amount of the bonds the holders of which are
required to approve any such supplemental indenture.

                  The Company reserves the right, without any consent, vote or
other action by holders of bonds of this series or any other series created
after the Sixty-eighth Supplemental Indenture to amend the Indenture to reduce
the percentage of the principal amount of bonds the holders of which are
required to approve any supplemental indenture (other than any supplemental
indenture which is subject to the proviso contained in the immediately preceding
sentence) (a) from not less than seventy-five per centum (including sixty per
centum of each series affected) to not less than a majority in principal amount
of the bonds at the time outstanding or (b) in case fewer than all series are
affected, not less than a majority in principal amount of the bonds of all
affected series, voting together.

                  This bond is not redeemable except upon written demand of the
Senior Note Trustee following the occurrence of an Event of Default under the
Senior Note Indenture and the acceleration of the senior notes, as provided in
Section 8.01 of the Senior Note Indenture. This bond is not redeemable by the
operation of the improvement fund or the maintenance and replacement provisions
of the Indenture or with the proceeds of released property.

                  This bond shall not be assignable or transferable except as
permitted or required by Section 4.04 of the Senior Note Indenture. Any such
transfer shall be effected at the Investor Services Department of the Company,
as transfer agent (hereinafter referred to as "corporate trust office"). This
bond shall be exchangeable for other registered bonds of the same series, in the
manner and upon the conditions prescribed in the Indenture, upon the surrender
of such bonds at said corporate trust office of the transfer agent. However,
notwithstanding the provisions of Section 2.05 of the Indenture, no charge shall
be made upon any registration of transfer or exchange of bonds of said series
other than for any tax or taxes or other governmental charge required to be paid
by the Company.

                  As provided in Section 4.11 of the Senior Note Indenture, from
and after the Release Date (as defined in the Senior Note Indenture), the
obligations of the Company with respect to this bond shall be deemed to be
satisfied and discharged, this bond shall cease to secure in any manner any
senior notes outstanding under the Senior Note Indenture, and, pursuant to
Section 4.08 of the Senior Note Indenture, the Senior Note Trustee shall
forthwith deliver this bond to the Company for cancellation.

                  In case of certain defaults as specified in the Indenture, the
principal of this bond may be declared or may become due and payable on the
conditions, at the time, in the manner and with the effect provided in the
Indenture.

                  No recourse shall be had for the payment of the principal of
or premium, if any, or interest on this bond, or for any claim based hereon, or
otherwise in respect hereof or of the Indenture, to or against any

                                       6

<PAGE>

incorporator, stockholder, director or officer, past, present or future, as
such, of the Company, or of any predecessor or successor company, either
directly or through the Company, or such predecessor or successor company, or
otherwise, under any constitution or statute or rule of law, or by the
enforcement of any assessment or penalty, or otherwise, all such liability of
incorporators, stockholders, directors and officers, as such, being waived and
released by the holder and owner hereof by the acceptance of this bond and being
likewise waived and released by the terms of the Indenture.

                              --------------------

                  AND WHEREAS all acts and things necessary to make the 2006
Note Bonds, when duly executed by the Company and authenticated by the Trustee
or its agent and issued as prescribed in the Indenture, as heretofore
supplemented and amended, and this Supplemental Indenture provided, the valid,
binding and legal obligations of the Company, and to constitute the Indenture,
as supplemented and amended as aforesaid, as well as by this Supplemental
Indenture, a valid, binding and legal instrument for the security thereof, have
been done and performed, and the creation, execution and delivery of this
Supplemental Indenture and the creation, execution and issuance of bonds subject
to the terms hereof and of the Indenture, as so supplemented and amended, have
in all respects been duly authorized;

                  NOW, THEREFORE, in consideration of the premises, of the
acceptance and purchase by the holders thereof of the bonds issued and to be
issued under the Indenture, as supplemented and amended as above set forth, and
of the sum of One Dollar duly paid by the Trustee to the Company, and of other
good and valuable considerations, the receipt whereof is hereby acknowledged,
and for the purpose of securing the due and punctual payment of the principal of
and premium, if any, and interest on all bonds now outstanding under the
Indenture and the $350,000,000 principal amount of the 2006 Note Bonds proposed
to be issued initially and all other bonds which shall be issued under the
Indenture, as supplemented and amended from time to time, and for the purpose of
securing the faithful performance and observance of all covenants and conditions
therein, and in any indenture supplemental thereto, set forth, the Company has
given, granted, bargained, sold, released, transferred, assigned, hypothecated,
pledged, mortgaged, confirmed, set over, warranted, alienated and conveyed and
by these presents does give, grant, bargain, sell, release, transfer, assign,
hypothecate, pledge, mortgage, confirm, set over, warrant, alien and convey unto
The Chase Manhattan Bank, as Trustee, as provided in the Indenture, and its
successor or successors in the trust thereby and hereby created and to its or
their assigns forever, all the right, title and interest of the Company in and
to all the property, described in Section 13 hereof, together (subject to the
provisions of Article X of the Indenture) with the tolls, rents, revenues,
issues, earnings, income, products and profits thereof, excepting, however, the
property, interests and rights specifically excepted from the lien of the
Indenture as set forth in the Indenture.

                  TOGETHER WITH all and singular the tenements, hereditaments
and appurtenances belonging or in any wise appertaining to the premises,
property, franchises and rights, or any thereof, referred to in the foregoing
granting clause, with the reversion and reversions, remainder and remainders and
(subject to the provisions of Article X of the Indenture) the tolls, rents,
revenues, issues, earnings, income, products and profits thereof, and all the
estate, right, title and interest and claim whatsoever, at law as well as in
equity, which the Company now has or may hereafter acquire in and to the
aforesaid premises, property, franchises and rights and every part and parcel
thereof.

                  SUBJECT, HOWEVER, with respect to such premises, property,
franchises and rights, to excepted encumbrances as said term is defined in
Section 1.02 of the Indenture, and subject also to all defects and limitations
of title and to all encumbrances existing at the time of acquisition.

                  TO HAVE AND TO HOLD all said premises, property, franchises
and rights hereby conveyed, assigned, pledged or mortgaged, or intended so to
be, unto the Trustee, its successor or successors in trust and their assigns
forever;

                                       7

<PAGE>

                  BUT IN TRUST, NEVERTHELESS, with power of sale for the equal
and proportionate benefit and security of the holders of all bonds now or
hereafter authenticated and delivered under and secured by the Indenture and
interest coupons appurtenant thereto, pursuant to the provisions of the
Indenture and of any supplemental indenture, and for the enforcement of the
payment of said bonds and coupons when payable and the performance of and
compliance with the covenants and conditions of the Indenture and of any
supplemental indenture, without any preference, distinction or priority as to
lien or otherwise of any bond or bonds over others by reason of the difference
in time of the actual authentication, delivery, issue, sale or negotiation
thereof or for any other reason whatsoever, except as otherwise expressly
provided in the Indenture; and so that each and every bond now or hereafter
authenticated and delivered thereunder shall have the same lien, and so that the
principal of and premium, if any, and interest on every such bond shall, subject
to the terms thereof, be equally and proportionately secured, as if it had been
made, executed, authenticated, delivered, sold and negotiated simultaneously
with the execution and delivery thereof.

                  AND IT IS EXPRESSLY DECLARED by the Company that all bonds
authenticated and delivered under and secured by the Indenture, as supplemented
and amended as above set forth, are to be issued, authenticated and delivered,
and all said premises, property, franchises and rights hereby and by the
Indenture and indentures supplemental thereto conveyed, assigned, pledged or
mortgaged, or intended so to be, are to be dealt with and disposed of under,
upon and subject to the terms, conditions, stipulations, covenants, agreements,
trusts, uses and purposes expressed in the Indenture, as supplemented and
amended as above set forth, and the parties hereto mutually agree as follows:

                  SECTION 1. There is hereby created one series of bonds (the
"2006 Note Bonds") designated as hereinabove provided, which shall also bear the
descriptive title "First Mortgage Bond", and the form thereof shall be
substantially as hereinbefore set forth. The 2006 Note Bonds shall be issued in
the aggregate principal amount of $350,000,000, shall mature on September 15,
2006 and shall be issued only as registered bonds without coupons in
denominations of $1,000 and any multiple thereof. The serial numbers of bonds of
the 2006 Note Bonds shall be such as may be approved by any officer of the
Company, the execution thereof by any such officer either manually or by
facsimile signature to be conclusive evidence of such approval. The 2006 Note
Bonds shall bear interest at a rate of 6.25% per annum until the principal
thereof shall have become due and payable, subject to adjustment in accordance
with the 2006 Notes. The principal of and the premium, if any, and the interest
on said bonds shall be payable in any coin or currency of the United States of
America which at the time of payment is legal tender for public and private
debts, at the office or agency of the Company in the City of Jackson, Michigan
designated for that purpose.

                  Upon any payment by the Company of the principal of and
interest on, all or any portion of the Notes whether at maturity or prior to
maturity by redemption or otherwise or upon provision for the payment thereof
having been made in accordance with Section 5.01(a) of the Senior Note
Indenture, the 2006 Note Bonds in a principal amount equal to the principal
amount of such 2006 Notes and having both a corresponding maturity date and
interest rate shall, to the extent of such payment of principal and interest, be
deemed paid and the obligation of the Company thereunder to make such payment
shall be discharged to such extent and, in the case of the payment of principal
(and premium, if any) such bonds of said series shall be surrendered to the
Company for cancellation as provided in Section 4.08 of the Senior Note
Indenture. The Trustee may at anytime and all times conclusively assume that the
obligation of the Company to make payments with respect to the principal of and
premium, if any, and interest on the 2006 Note Bonds so far as such payments at
the time have become due, has been fully satisfied and discharged pursuant to
the foregoing sentence unless and until the Trustee shall have received a
written notice from the Senior Note Trustee signed by one of its officers
stating (i) that timely payment of or premium or interest on, the 2006 Notes has
not been so made, (ii) that the Company is in arrears as to the payments
required to be made by it to the Senior Note Trustee pursuant to the Senior Note
Indenture, and (iii) the amount of the arrearage.

                  The 2006 Note Bonds are to be issued to and registered in the
name of The Chase Manhattan Bank, as trustee, or a successor trustee (said
trustee or any successor trustee being hereinafter referred to as the

                                       8

<PAGE>

"Senior Note Trustee") under the Indenture, dated as of February 1, 1998
(hereinafter sometimes referred to as the "Senior Note Indenture") between
Consumers Energy Company and the Senior Note Trustee, to secure any and all
obligations of the Company under the Notes and any other series of senior notes
from time to time outstanding under the Senior Note Indenture.

                  The 2006 Note Bonds shall not be assignable or transferable
except as permitted or required by Section 4.04 of the Senior Note Indenture.
Any such transfer shall be effected at the Investor Services Department of the
Company, as transfer agent (hereinafter referred to as "corporate trust
office"). The 2006 Note Bonds shall be exchangeable for other registered bonds
of the same series, in the manner and upon the conditions prescribed in the
Indenture, upon the surrender of such bonds at said corporate trust office of
the transfer agent. However, notwithstanding the provisions of Section 2.05 of
the Indenture, no charge shall be made upon any registration of transfer or
exchange of bonds of said series other than for any tax or taxes or other
governmental charge required to be paid by the Company.

                  SECTION 2. The 2006 Notes are subject to redemption described
therein. In the event the 2006 Notes are redeemed as provided therein, upon
redemption thereof, the 2006 Note Bonds shall be deemed to be redeemed on the
respective dates for, in the principal amounts to be redeemed of, and for the
redemption prices for the 2006 Notes.

                  The 2006 Note Bonds are also redeemable as set forth in
Section 3 hereof.

                  The 2006 Note Bonds are not redeemable by the operation of the
maintenance and replacement provisions of this Indenture or with the proceeds of
released property.

                  SECTION 3. Upon the occurrence of an Event of Default under
the Senior Note Indenture and the acceleration of the 2006 Notes, the 2006 Note
Bonds shall be redeemable in whole upon receipt by the Trustee of a written
demand (hereinafter called a "Redemption Demand") from the Senior Note Trustee
stating that there has occurred under the Senior Note Indenture both an Event of
Default and a declaration of acceleration of payment of principal, accrued
interest and premium, if any, on the 2006 Notes, specifying the last date to
which interest on such notes has been paid (such date being hereinafter referred
to as the "Initial Interest Accrual Date") and demanding redemption of the 2006
Note Bonds. The Company waives any right it may have to prior notice of such
redemption under the Indenture. Upon surrender of the 2006 Note Bonds by the
Senior Note Trustee to the Trustee, the 2006 Note Bonds shall be redeemed at a
redemption price equal to the principal amount thereof plus accrued interest
thereon from the Initial Interest Accrual Date to the date of the Redemption
Demand; provided, however, that in the event of a recision of acceleration of
senior notes pursuant to the last paragraph of Section 8.01(a) of the Senior
Note Indenture, then any Redemption Demand shall thereby be deemed to be
rescinded by the Senior Note Trustee; but no such recision or annulment shall
extend to or affect any subsequent default or impair any right consequent
thereon.

                  SECTION 4. For purposes of Section 4.09 of the Senior Note
Indenture, the 2006 Note Bonds shall be deemed to be the "related series of
Senior Note First Mortgage Bonds" in respect of the 2006 Notes.

                  SECTION 5. As provided in Section 4.11 of the Senior Note
Indenture, from and after the Release Date (as defined in the Senior Note
Indenture), the obligations of the Company with respect to the 2006 Note Bonds
shall be deemed to be satisfied and discharged, the 2006 Note Bonds shall cease
to secure in any manner any senior notes outstanding under the Senior Note
Indenture, and, pursuant to Section 4.08 of the Senior Note Indenture, the
Senior Note Trustee shall forthwith deliver the 2006 Note Bonds to the Company
for cancellation.

                  SECTION 6. The Company reserves the right, without any
consent, vote or other action by the holder of the 2006 Note Bonds or the
holders of any Notes, or of any subsequent series of bonds issued

                                       9

<PAGE>

under the Indenture, to make such amendments to the Indenture, as supplemented,
as shall be necessary in order to amend Section 17.02 to read as follows:

                           SECTION 17.02. With the consent of the holders of not
                  less than a majority in principal amount of the bonds at the
                  time outstanding or their attorneys-in-fact duly authorized,
                  or, if fewer than all series are affected, not less than a
                  majority in principal amount of the bonds at the time
                  outstanding of each series the rights of the holders of which
                  are affected, voting together, the Company, when authorized by
                  a resolution, and the Trustee may from time to time and at any
                  time enter into an indenture or indentures supplemental hereto
                  for the purpose of adding any provisions to or changing in any
                  manner or eliminating any of the provisions of this Indenture
                  or of any supplemental indenture or modifying the rights and
                  obligations of the Company and the rights of the holders of
                  any of the bonds and coupons; provided, however, that no such
                  supplemental indenture shall (1) extend the maturity of any of
                  the bonds or reduce the rate or extend the time of payment of
                  interest thereon, or reduce the amount of the principal
                  thereof, or reduce any premium payable on the redemption
                  thereof, without the consent of the holder of each bond so
                  affected, or (2) permit the creation of any lien, not
                  otherwise permitted, prior to or on a parity with the lien of
                  this Indenture, without the consent of the holders of all the
                  bonds then outstanding, or (3) reduce the aforesaid percentage
                  of the principal amount of bonds the holders of which are
                  required to approve any such supplemental indenture, without
                  the consent of the holders of all the bonds then outstanding.
                  For the purposes of this Section, bonds shall be deemed to be
                  affected by a supplemental indenture if such supplemental
                  indenture adversely affects or diminishes the rights of
                  holders thereof against the Company or against its property.
                  The Trustee may in its discretion determine whether or not, in
                  accordance with the foregoing, bonds of any particular series
                  would be affected by any supplemental indenture and any such
                  determination shall be conclusive upon the holders of bonds of
                  such series and all other series. Subject to the provisions of
                  Sections 16.02 and 16.03 hereof, the Trustee shall not be
                  liable for any determination made in good faith in connection
                  herewith.

                           Upon the written request of the Company, accompanied
                  by a resolution authorizing the execution of any such
                  supplemental indenture, and upon the filing with the Trustee
                  of evidence of the consent of bondholders as aforesaid (the
                  instrument or instruments evidencing such consent to be dated
                  within one year of such request), the Trustee shall join with
                  the Company in the execution of such supplemental indenture
                  unless such supplemental indenture affects the Trustee's own
                  rights, duties or immunities under this Indenture or
                  otherwise, in which case the Trustee may in its discretion but
                  shall not be obligated to enter into such supplemental
                  indenture.

                           It shall not be necessary for the consent of the
                  bondholders under this Section to approve the particular form
                  of any proposed supplemental indenture, but it shall be
                  sufficient if such consent shall approve the substance
                  thereof.

                           The Company and the Trustee, if they so elect, and
                  either before or after such consent has been obtained, may
                  require the holder of any bond consenting to the execution of
                  any such supplemental indenture to submit his

                                       10

<PAGE>

                  bond to the Trustee or to ask such bank, banker or trust
                  company as may be designated by the Trustee for the purpose,
                  for the notation thereon of the fact that the holder of such
                  bond has consented to the execution of such supplemental
                  indenture, and in such case such notation, in form
                  satisfactory to the Trustee, shall be made upon all bonds so
                  submitted, and such bonds bearing such notation shall
                  forthwith be returned to the persons entitled thereto.

                           Prior to the execution by the Company and the Trustee
                  of any supplemental indenture pursuant to the provisions of
                  this Section, the Company shall publish a notice, setting
                  forth in general terms the substance of such supplemental
                  indenture, at least once in one daily newspaper of general
                  circulation in each city in which the principal of any of the
                  bonds shall be payable, or, if all bonds outstanding shall be
                  registered bonds without coupons or coupon bonds registered as
                  to principal, such notice shall be sufficiently given if
                  mailed, first class, postage prepaid, and registered if the
                  Company so elects, to each registered holder of bonds at the
                  last address of such holder appearing on the registry books,
                  such publication or mailing, as the case may be, to be made
                  not less than thirty days prior to such execution. Any failure
                  of the Company to give such notice, or any defect therein,
                  shall not, however, in any way impair or affect the validity
                  of any such supplemental indenture.

                  SECTION 7. As supplemented and amended as above set forth, the
Indenture is in all respects ratified and confirmed, and the Indenture and all
indentures supplemental thereto shall be read, taken and construed as one and
the same instrument.

                  SECTION 8. Nothing contained in this Supplemental Indenture
shall, or shall be construed to, confer upon any person other than a holder of
bonds issued under the Indenture, as supplemented and amended as above set
forth, the Company, the Trustee and the Senior Note Trustee, for the benefit of
the holder or holders of the Notes, any right or interest to avail himself of
any benefit under any provision of the Indenture, as so supplemented and
amended.

                  SECTION 9. The Trustee assumes no responsibility for or in
respect of the validity or sufficiency of this Supplemental Indenture or of the
Indenture as hereby supplemented or the due execution hereof by the Company or
for or in respect of the recitals and statements contained herein (other than
those contained in the sixth and seventh recitals hereof), all of which recitals
and statements are made solely by the Company.

                  SECTION 10. This Supplemental Indenture may be simultaneously
executed in several counterparts and all such counterparts executed and
delivered, each as an original, shall constitute but one and the same
instrument.

                  SECTION 11. In the event the date of any notice required or
permitted hereunder or the date of maturity of interest on or principal of the
2006 Note Bonds or the date fixed for redemption or repayment of the 2006 Note
Bonds shall not be a Business Day, then (notwithstanding any other provision of
the Indenture or of any supplemental indenture thereto) such notice or such
payment of such interest or principal need not be made on such date, but may be
made on the next succeeding Business Day with the same force and effect as if
made on the date fixed for such notice or as if made on the date of maturity or
the date fixed for redemption or repayment, and no interest shall accrue for the
period from and after such date. "Business Day" means, with respect to this
Section 11, a day of the year on which banks are not required or authorized to
close in New York City or Detroit, Michigan.

                                       11

<PAGE>

                  SECTION 12. This Supplemental Indenture and the 2006 Note
Bonds shall be governed by and deemed to be a contract under, and construed in
accordance with, the laws of the State of Michigan, and for all purposes shall
be construed in accordance with the laws of such state, except as may otherwise
be required by mandatory provisions of law.

                  SECTION 13. Detailed Description of Property Mortgaged:

                                       I.

                       ELECTRIC GENERATING PLANTS AND DAMS

                  All the electric generating plants and stations of the
Company, constructed or otherwise acquired by it and not heretofore described in
the Indenture or any supplement thereto and not heretofore released from the
lien of the Indenture, including all powerhouses, buildings, reservoirs, dams,
pipelines, flumes, structures and works and the land on which the same are
situated and all water rights and all other lands and easements, rights of way,
permits, privileges, towers, poles, wires, machinery, equipment, appliances,
appurtenances and supplies and all other property, real or personal, forming a
part of or appertaining to or used, occupied or enjoyed in connection with such
plants and stations or any of them, or adjacent thereto.

                                       II.

                           ELECTRIC TRANSMISSION LINES

                  All the electric transmission lines of the Company,
constructed or otherwise acquired by it and not heretofore described in the
Indenture or any supplement thereto and not heretofore released from the lien of
the Indenture, including towers, poles, pole lines, wires, switches, switch
racks, switchboards, insulators and other appliances and equipment, and all
other property, real or personal, forming a part of or appertaining to or used,
occupied or enjoyed in connection with such transmission lines or any of them or
adjacent thereto; together with all real property, rights of way, easements,
permits, privileges, franchises and rights for or relating to the construction,
maintenance or operation thereof, through, over, under or upon any private
property or any public streets or highways, within as well as without the
corporate limits of any municipal corporation. Also all the real property,
rights of way, easements, permits, privileges and rights for or relating to the
construction, maintenance or operation of certain transmission lines, the land
and rights for which are owned by the Company, which are either not built or now
being constructed.

                                      III.

                          ELECTRIC DISTRIBUTION SYSTEMS

                  All the electric distribution systems of the Company,
constructed or otherwise acquired by it and not heretofore described in the
Indenture or any supplement thereto and not heretofore released from the lien of
the Indenture, including substations, transformers, switchboards, towers, poles,
wires, insulators, subways, trenches, conduits, manholes, cables, meters and
other appliances and equipment, and all other property, real or personal,
forming a part of or appertaining to or used, occupied or enjoyed in connection
with such distribution systems or any of them or adjacent thereto; together with
all real property, rights of way, easements, permits, privileges, franchises,
grants and rights, for or relating to the construction, maintenance or operation
thereof, through, over, under or upon any private property or any public streets
or highways within as well as without the corporate limits of any municipal
corporation.

                                       12

<PAGE>
                                       IV.

                              ELECTRIC SUBSTATIONS,
                          SWITCHING STATIONS AND SITES

                  All the substations, switching stations and sites of the
Company, constructed or otherwise acquired by it and not heretofore described in
the Indenture or any supplement thereto and not heretofore released from the
lien of the Indenture, for transforming, regulating, converting or distributing
or otherwise controlling electric current at any of its plants and elsewhere,
together with all buildings, transformers, wires, insulators and other
appliances and equipment, and all other property, real or personal, forming a
part of or appertaining to or used, occupied or enjoyed in connection with any
of such substations and switching stations, or adjacent thereto, with sites to
be used for such purposes.

                                       V.

                 GAS COMPRESSOR STATIONS, GAS PROCESSING PLANTS,
                  DESULPHURIZATION STATIONS, METERING STATIONS,
                    ODORIZING STATIONS, REGULATORS AND SITES

                  All the compressor stations, processing plants,
desulphurization stations, metering stations, odorizing stations, regulators and
sites of the Company, constructed or otherwise acquired by it and not heretofore
described in the Indenture or any supplement thereto and not heretofore released
from the lien of the Indenture, for compressing, processing, desulphurizing,
metering, odorizing and regulating manufactured or natural gas at any of its
plants and elsewhere, together with all buildings, meters and other appliances
and equipment, and all other property, real or personal, forming a part of or
appertaining to or used, occupied or enjoyed in connection with any of such
purposes, with sites to be used for such purposes.

                                       VI.

                               GAS STORAGE FIELDS

                  The natural gas rights and interests of the Company, including
wells and well lines (but not including natural gas, oil and minerals), the gas
gathering system, the underground gas storage rights, the underground gas
storage wells and injection and withdrawal system used in connection therewith,
constructed or otherwise acquired by it and not heretofore described in the
Indenture or any supplement thereto and not heretofore released from the lien of
the Indenture: In the Overisel Gas Storage Field, located in the Township of
Overisel, Allegan County, and in the Township of Zeeland, Ottawa County,
Michigan; in the Northville Gas Storage Field located in the Township of Salem,
Washtenaw County, Township of Lyon, Oakland County, and the Townships of
Northville and Plymouth and City of Plymouth, Wayne County, Michigan; in the
Salem Gas Storage Field, located in the Township of Salem, Allegan County, and
in the Township of Jamestown, Ottawa County, Michigan; in the Ray Gas Storage
Field, located in the Townships of Ray and Armada, Macomb County, Michigan; in
the Lenox Gas Storage Field, located in the Townships of Lenox and Chesterfield,
Macomb County, Michigan; in the Ira Gas Storage Field, located in the Township
of Ira, St. Clair County, Michigan; in the Puttygut Gas Storage Field, located
in the Township of Casco, St. Clair County, Michigan; in the Four Corners Gas
Storage Field, located in the Townships of Casco, China, Cottrellville and Ira,
St. Clair County, Michigan; in the Swan Creek Gas Storage Field, located in the
Township of Casco and Ira, St. Clair County, Michigan; and in the Hessen Gas
Storage Field, located in the Townships of Casco and Columbus, St. Clair,
Michigan.

                                       13

<PAGE>

                                      VII.

                             GAS TRANSMISSION LINES

                  All the gas transmission lines of the Company, constructed or
otherwise acquired by it and not heretofore described in the Indenture or any
supplement thereto and not heretofore released from the lien of the Indenture,
including gas mains, pipes, pipelines, gates, valves, meters and other
appliances and equipment, and all other property, real or personal, forming a
part of or appertaining to or used, occupied or enjoyed in connection with such
transmission lines or any of them or adjacent thereto; together with all real
property, right of way, easements, permits, privileges, franchises and rights
for or relating to the construction, maintenance or operation thereof, through,
over, under or upon any private property or any public streets or highways,
within as well as without the corporate limits of any municipal corporation.

                                      VIII.

                            GAS DISTRIBUTION SYSTEMS

                  All the gas distribution systems of the Company, constructed
or otherwise acquired by it and not heretofore described in the Indenture or any
supplement thereto and not heretofore released from the lien of the Indenture,
including tunnels, conduits, gas mains and pipes, service pipes, fittings,
gates, valves, connections, meters and other appliances and equipment, and all
other property, real or personal, forming a part of or appertaining to or used,
occupied or enjoyed in connection with such distribution systems or any of them
or adjacent thereto; together with all real property, rights of way, easements,
permits, privileges, franchises, grants and rights, for or relating to the
construction, maintenance or operation thereof, through, over, under or upon any
private property or any public streets or highways within as well as without the
corporate limits of any municipal corporation.

                                       IX.

                                OFFICE BUILDINGS,
                        SERVICE BUILDINGS, GARAGES, ETC.

                  All office, garage, service and other buildings of the
Company, wherever located, in the State of Michigan, constructed or otherwise
acquired by it and not heretofore described in the Indenture or any supplement
thereto and not heretofore released from the lien of the Indenture, together
with the land on which the same are situated and all easements, rights of way
and appurtenances to said lands, together with all furniture and fixtures
located in said buildings.

                                       X.

                            TELEPHONE PROPERTIES AND
                          RADIO COMMUNICATION EQUIPMENT

                  All telephone lines, switchboards, systems and equipment of
the Company, constructed or otherwise acquired by it and not heretofore
described in the Indenture or any supplement thereto and not heretofore released
from the line of the Indenture, used or available for use in the operation of
its properties, and all other property, real or personal, forming a part of or
appertaining to or used, occupied or enjoyed in connection with such telephone
properties or any of them or adjacent thereto; together with all real estate,
rights of way, easements, permits, privileges, franchises, property, devices or
rights related to the dispatch, transmission, reception or reproduction of
messages, communications, intelligence, signals, light, vision or

                                       14

<PAGE>

sound by electricity, wire or otherwise, including all telephone equipment
installed in buildings used as general and regional offices, substations and
generating stations and all telephone lines erected on towers and poles; and all
radio communication equipment of the Company, together with all property, real
or personal (except any in the Indenture expressly excepted), fixed stations,
towers, auxiliary radio buildings and equipment, and all appurtenances used in
connection therewith, wherever located, in the State of Michigan.

                                       XI.

                               OTHER REAL PROPERTY

                  All other real property of the Company and all interests
therein, of every nature and description (except any in the Indenture expressly
excepted) wherever located, in the State of Michigan, acquired by it and not
heretofore described in the Indenture or any supplement thereto and not
heretofore released from the line of the Indenture. Such real property includes
but is not limited to the following described property, such property is subject
to any interests that were excepted or reserved in the conveyance to the
Company:

                                  ALCONA COUNTY

                  Certain land in Caledonia Township, Alcona County, Michigan
                  described as:

                  The East 330 feet of the South 660 feet of the SW 1/4 of the
                  SW 1/4 of Section 8, T28N, R8E, except the West 264 feet of
                  the South 330 feet thereof; said land being more particularly
                  described as follows: To find the place of beginning of this
                  description, commence at the Southwest corner of said section,
                  run thence East along the South line of said section 1243 feet
                  to the place of beginning of this description, thence
                  continuing East along said South line of said section 66 feet
                  to the West 1/8 line of said section, thence N 02 degrees 09'
                  30" E along the said West 1/8 line of said section 660 feet,
                  thence West 330 feet, thence S 02 degrees 09' 30" W, 330 feet,
                  thence East 264 feet, thence S 02 degrees 09' 30" W, 330 feet
                  to the place of beginning.

                                 ALLEGAN COUNTY

                  Certain land in Lee Township, Allegan County, Michigan
                  described as:

                  The NE 1/4 of the NW 1/4 of Section 16, T1N, R15W.

                                  ALPENA COUNTY

                  Certain land in Wilson and Green Townships, Alpena County,
                  Michigan described as:

                  All that part of the S'ly 1/2 of the former Boyne City-Gaylord
                  and Alpena Railroad right of way, being the Southerly 50 feet
                  of a 100 foot strip of land formerly occupied by said
                  Railroad, running from the East line of Section 31, T31N, R7E,
                  Southwesterly across said Section 31 and Sections 5 and 6 of
                  T30N, R7E and Sections 10, 11 and the E 1/2 of Section 9,
                  except the West 1646 feet thereof, all in T30N, R6E.

                                       15

<PAGE>

                                  ANTRIM COUNTY

                  Certain land in Mancelona Township, Antrim County, Michigan
                  described as:

                  The S 1/2 of the NE 1/4 of Section 33, T29N, R6W, excepting
                  therefrom all mineral, coal, oil and gas and such other rights
                  as were reserved unto the State of Michigan in that certain
                  deed running from the State of Michigan to August W. Schack
                  and Emma H. Schack, his wife, dated April 15, 1946 and
                  recorded May 20, 1946 in Liber 97 of Deeds on page 682 of
                  Antrim County Records.

                                  ARENAC COUNTY

                  Certain land in Standish Township, Arenac County, Michigan
                  described as:

                  A parcel of land in the SW 1/4 of the NW 1/4 of Section 12,
                  T18N, R4E, described as follows: To find the place of
                  beginning of said parcel of land, commence at the Northwest
                  corner of Section 12, T18N, R4E; run thence South along the
                  West line of said section, said West line of said section
                  being also the center line of East City Limits Road 2642.15
                  feet to the W 1/4 post of said section and the place of
                  beginning of said parcel of land; running thence N 88 degrees
                  26' 00" E along the East and West 1/4 line of said section,
                  660.0 feet; thence North parallel with the West line of said
                  section, 310.0 feet; thence S 88 degrees 26' 00" W, 330.0
                  feet; thence South parallel with the West line of said
                  section, 260.0 feet; thence S 88 degrees 26' 00" W, 330.0 feet
                  to the West line of said section and the center line of East
                  City Limits Road; thence South along the said West line of
                  said section, 50.0 feet to the place of beginning.

                                  BARRY COUNTY

                  Certain land in Johnstown Township, Barry County, Michigan
                  described as:

                  A strip of land 311 feet in width across the SW 1/4 of the NE
                  1/4 of Section 31, T1N, R8W, described as follows: To find the
                  place of beginning of this description, commence at the E 1/4
                  post of said section; run thence N 00 degrees 55' 00" E along
                  the East line of said section, 555.84 feet; thence N 59
                  degrees 36' 20" W, 1375.64 feet; thence N 88 degrees 30' 00"
                  W, 130 feet to a point on the East 1/8 line of said section
                  and the place of beginning of this description; thence
                  continuing N 88 degrees 30' 00" W, 1327.46 feet to the North
                  and South 1/4 line of said section; thence S 00 degrees 39'
                  35" W along said North and South 1/4 line of said section,
                  311.03 feet to a point, which said point is 952.72 feet
                  distant N'ly from the East and West 1/4 line of said section
                  as measured along said North and South 1/4 line of said
                  section; thence S 88 degrees 30' 00" E, 1326.76 feet to the
                  East 1/8 line of said section; thence N 00 degrees 47' 20" E
                  along said East 1/8 line of said section, 311.02 feet to the
                  place of beginning.

                                       16

<PAGE>

                                   BAY COUNTY

                  Certain land in Frankenlust Township, Bay County, Michigan
                  described as:

                  The South 250 feet of the N 1/2 of the W 1/2 of the W 1/2 of
                  the SE 1/4 of Section 9, T13N, R4E.

                                  BENZIE COUNTY

                  Certain land in Benzonia Township, Benzie County, Michigan
                  described as:

                  A parcel of land in the Northeast 1/4 of Section 7, Township
                  26 North, Range 14 West, described as beginning at a point on
                  the East line of said Section 7, said point being 320 feet
                  North measured along the East line of said section from the
                  East 1/4 post; running thence West 165 feet; thence North
                  parallel with the East line of said section 165 feet; thence
                  East 165 feet to the East line of said section; thence South
                  165 feet to the place of beginning.

                                  BRANCH COUNTY

                  Certain land in Girard Township, Branch County, Michigan
                  described as:

                  A parcel of land in the NE 1/4 of Section 23 T5S, R6W,
                  described as beginning at a point on the North and South
                  quarter line of said section at a point 1278.27 feet distant
                  South of the North quarter post of said section, said distance
                  being measured along the North and South quarter line of said
                  section, running thence S89 degrees 21'E 250 feet, thence
                  North along a line parallel with the said North and South
                  quarter line of said section 200 feet, thence N89 degrees 21'W
                  250 feet to the North and South quarter line of said section,
                  thence South along said North and South quarter line of said
                  section 200 feet to the place of beginning.

                                 CALHOUN COUNTY

                  Certain land in Convis Township, Calhoun County, Michigan
                  described as:

                  A parcel of land in the SE 1/4 of the SE 1/4 of Section 32,
                  T1S, R6W, described as follows: To find the place of beginning
                  of this description, commence at the Southeast corner of said
                  section; run thence North along the East line of said section
                  1034.32 feet to the place of beginning of this description;
                  running thence N 89 degrees 39' 52" W, 333.0 feet; thence
                  North 290.0 feet to the South 1/8 line of said section; thence
                  S 89 degrees 39' 52" E along said South 1/8 line of said
                  section 333.0 feet to the East line of said section; thence
                  South along said East line of said section 290.0 feet to the
                  place of beginning. (Bearings are based on the East line of
                  Section 32, T1S, R6W, from the Southeast corner of said
                  section to the Northeast corner of said section assumed as
                  North.)

                                       17

<PAGE>

                                   CASS COUNTY

                  Certain easement rights located across land in Marcellus
                  Township, Cass County, Michigan described as:

                  The East 6 rods of the SW 1/4 of the SE 1/4 of Section 4, T5S,
                  R13W.

                                CHARLEVOIX COUNTY

                  Certain land in South Arm Township, Charlevoix County,
                  Michigan described as:

                  A parcel of land in the SW 1/4 of Section 29, T32N, R7W,
                  described as follows: Beginning at the Southwest corner of
                  said section and running thence North along the West line of
                  said section 788.25 feet to a point which is 528 feet distant
                  South of the South 1/8 line of said section as measured along
                  the said West line of said section; thence N 89 degrees 30'
                  19" E, parallel with said South 1/8 line of said section 442.1
                  feet; thence South 788.15 feet to the South line of said
                  section; thence S 89 degrees 29' 30" W, along said South line
                  of said section 442.1 feet to the place of beginning.

                                CHEBOYGAN COUNTY

                  Certain land in Inverness Township, Cheboygan County, Michigan
                  described as:

                  A parcel of land in the SW frl 1/4 of Section 31, T37N, R2W,
                  described as beginning at the Northwest corner of the SW frl
                  1/4, running thence East on the East and West quarter line of
                  said Section, 40 rods, thence South parallel to the West line
                  of said Section 40 rods, thence West 40 rods to the West line
                  of said Section, thence North 40 rods to the place of
                  beginning.

                                  CLARE COUNTY

                  Certain land in Frost Township, Clare County, Michigan
                  described as:

                  The East 150 feet of the North 225 feet of the NW 1/4 of the
                  NW 1/4 of Section 15, T20N, R4W.

                                 CLINTON COUNTY

                  Certain land in Watertown Township, Clinton County, Michigan
                  described as:

                  The NE 1/4 of the NE 1/4 of the SE 1/4 of Section 22, and the
                  North 165 feet of the NW 1/4 of the NE 1/4 of the SE 1/4 of
                  Section 22, T5N, R3W.

                                 CRAWFORD COUNTY

                  Certain land in Lovells Township, Crawford County, Michigan
                  described as:

                  A parcel of land in Section 1, T28N, R1W, described as:
                  Commencing at NW corner said section; thence South 89 degrees
                  53'30" East along North section line 105.78 feet to point of
                  beginning; thence South 89 degrees 53'30" East along North
                  section line 649.64 feet; thence South 55 degrees 42'30" East
                  340.24 feet; thence South 55 degrees 44'37" East 5,061.81 feet
                  to the East section line; thence

                                       18

<PAGE>
                  South 00 degrees 00'08" West along East section line 441.59
                  feet; thence North 55 degrees 44'37" West 5,310.48 feet;
                  thence North 55 degrees 42'30" West 877.76 feet to point of
                  beginning.

                                  EATON COUNTY

                  Certain land in Eaton Township, Eaton County, Michigan
                  described as:

                  A parcel of land in the SW 1/4 of Section 6, T2N, R4W,
                  described as follows: To find the place of beginning of this
                  description commence at the Southwest corner of said section;
                  run thence N 89 degrees 51' 30" E along the South line of said
                  section 400 feet to the place of beginning of this
                  description; thence continuing N 89 degrees 51' 30" E, 500
                  feet; thence N 00 degrees 50' 00" W, 600 feet; thence S 89
                  degrees 51' 30" W parallel with the South line of said section
                  500 feet; thence S 00 degrees 50' 00" E, 600 feet to the place
                  of beginning.

                                  EMMET COUNTY

                  Certain land in Wawatam Township, Emmet County, Michigan
                  described as:

                  The West 1/2 of the Northeast 1/4 of the Northeast 1/4 of
                  Section 23, T39N, R4W.

                                 GENESEE COUNTY

                  Certain land in Argentine Township, Genesee County, Michigan
                  described as:

                  A parcel of land of part of the SW 1/4 of Section 8, T5N, R5E,
                  being more particularly described as follows:

                  Beginning at a point of the West line of Duffield Road, 100
                  feet wide, (as now established) distant 829.46 feet measured
                  N01 degrees 42'56"W and 50 feet measured S88 degrees 14'04"W
                  from the South quarter corner, Section 8, T5N, R5E; thence S88
                  degrees 14'04"W a distance of 550 feet; thence N01 degrees
                  42'56"W a distance of 500 feet to a point on the North line of
                  the South half of the Southwest quarter of said Section 8;
                  thence N88 degrees 14'04"E along the North line of South half
                  of the Southwest quarter of said Section 8 a distance 550 feet
                  to a point on the West line of Duffield Road, 100 feet wide
                  (as now established); thence S01 degrees 42'56"E along the
                  West line of said Duffield Road a distance of 500 feet to the
                  point of beginning.

                                 GLADWIN COUNTY

                  Certain land in Secord Township, Gladwin County, Michigan
                  described as:

                  The East 400 feet of the South 450 feet of Section 2, T19N,
                  R1E.

                                       19

<PAGE>

                              GRAND TRAVERSE COUNTY

                  Certain land in Mayfield Township, Grand Traverse County,
                  Michigan described as:

                  A parcel of land in the Northwest 1/4 of Section 3, T25N,
                  R11W, described as follows: Commencing at the Northwest corner
                  of said section, running thence S 89 degrees 19'15" E along
                  the North line of said section and the center line of Clouss
                  Road 225 feet, thence South 400 feet, thence N 89 degrees
                  19'15" W 225 feet to the West line of said section and the
                  center line of Hannah Road, thence North along the West line
                  of said section and the center line of Hannah Road 400 feet to
                  the place of beginning for this description.

                                 GRATIOT COUNTY

                  Certain land in Washington Township, Gratiot County, Michigan
                  described as:

                  Commencing at the Northeast corner of Section 10, T9N, R2W,
                  running thence West along the North line of said section a
                  distance of 194.5 feet, thence S0 degrees 07'10"W 200 feet to
                  a point, thence East 194.5 feet to the East line of said
                  Section 10, thence N0 degrees 07'10"E along the East line of
                  said section a distance of 200 feet to the point of beginning.

                                HILLSDALE COUNTY

                  Certain land in Litchfield Village, Hillsdale County, Michigan
                  described as:

                  Lots numbered three (3) and four (4) of Block three (3) of
                  Harvey Smiths Southern Addition to the Village of Litchfield
                  according to the recorded plat thereof as recorded in Liber AK
                  of deeds, page 490.

                                  HURON COUNTY

                  Certain easement rights located across land in Sebewaing
                  Township, Huron County, Michigan described as:

                  The North 1/2 of the Northwest 1/4 of Section 15, T15N, R9E.

                                  INGHAM COUNTY

                  Certain land in Vevay Township, Ingham County, Michigan
                  described as:

                  A parcel of land 660 feet wide in the Southwest 1/4 of Section
                  7 lying South of the centerline of Sitts Road as extended to
                  the North-South 1/4 line of said Section 7, T2N, R1W, more
                  particularly described as follows: Commence at the Southwest
                  corner of said Section 7, thence North along the West line of
                  said Section 2502.71 feet to the centerline of Sitts Road;
                  thence South 89 degrees 54'45" East along said centerline
                  2282.38 feet to the place of beginning of this description;
                  thence continuing South 89 degrees 54'45" East along said
                  centerline and said centerline extended 660.00 feet to the
                  North-South 1/4 line of said section; thence South 00 degrees
                  07'20" West 1461.71 feet; thence North 89 degrees 34'58" West
                  660.00 feet; thence North 00 degrees 07'20" East 1457.91 feet
                  to the centerline of Sitts Road and the place of beginning.

                                       20

<PAGE>
                                  IONIA COUNTY

                  Certain land in Sebewa Township, Ionia County, Michigan
                  described as:

                  A strip of land 280 feet wide across that part of the SW 1/4
                  of the NE 1/4 of Section 15, T5N, R6W, described as follows:
                  To find the place of beginning of this description commence at
                  the E 1/4 corner of said section; run thence N 00 degrees 05'
                  38" W along the East line of said section, 1218.43 feet;
                  thence S 67 degrees 18' 24" W, 1424.45 feet to the East 1/8
                  line of said section and the place of beginning of this
                  description; thence continuing S 67 degrees 18' 24" W, 1426.28
                  feet to the North and South 1/4 line of said section at a
                  point which said point is 105.82 feet distant N'ly of the
                  center of said section as measured along said North and South
                  1/4 line of said section; thence N 00 degrees 04' 47" E along
                  said North and South 1/4 line of said section, 303.67 feet;
                  thence N 67 degrees 18' 24" E, 1425.78 feet to the East 1/8
                  line of said section; thence S 00 degrees 00' 26" E along said
                  East 1/8 line of said section, 303.48 feet to the place of
                  beginning. (Bearings are based on the East line of Section 15,
                  T5N, R6W, from the E 1/4 corner of said section to the
                  Northeast corner of said section assumed as N 00 degrees 05'
                  38" W.)

                                  IOSCO COUNTY

                  Certain land in Alabaster Township, Iosco County, Michigan
                  described as:

                  A parcel of land in the NW 1/4 of Section 34, T21N, R7E,
                  described as follows: To find the place of beginning of this
                  description commence at the N 1/4 post of said section; run
                  thence South along the North and South 1/4 line of said
                  section, 1354.40 feet to the place of beginning of this
                  description; thence continuing South along the said North and
                  South 1/4 line of said section, 165.00 feet to a point on the
                  said North and South 1/4 line of said section which said point
                  is 1089.00 feet distant North of the center of said section;
                  thence West 440.00 feet; thence North 165.00 feet; thence East
                  440.00 feet to the said North and South 1/4 line of said
                  section and the place of beginning.

                                 ISABELLA COUNTY

                  Certain land in Chippewa Township, Isabella County, Michigan
                  described as:

                  The North 8 rods of the NE 1/4 of the SE 1/4 of Section 29,
                  T14N, R3W.

                                 JACKSON COUNTY

                  Certain land in Waterloo Township, Jackson County, Michigan
                  described as:

                  A parcel of land in the North fractional part of the N
                  fractional 1/2 of Section 2, T1S, R2E, described as follows:
                  To find the place of beginning of this description commence at
                  the E 1/4 post of said section; run thence N 01 degrees 03'
                  40" E along the East line of said section 13335.45 feet to the
                  North 1/8 line of said section and the place of beginning of
                  this description; thence N 89 degrees 32' 00" W, 2677.7 feet
                  to the North and South 1/4 line of said

                                       21

<PAGE>
                  section; thence S 00E 59' 25" W along the North and South 1/4
                  line of said section 22.38 feet to the North 1/8 line of said
                  section; thence S 89E 59' 10" W along the North 1/8 line of
                  said section 2339.4 feet to the center line of State Trunkline
                  Highway M-52; thence N 53 degrees 46' 00" W along the center
                  line of said State Trunkline Highway 414.22 feet to the West
                  line of said section; thence N 00 degrees 55' 10" E along the
                  West line of said section 74.35 feet; thence S 89 degrees 32'
                  00" E, 5356.02 feet to the East line of said section; thence S
                  01 degrees 03' 40" W along the East line of said section 250
                  feet to the place of beginning.

                                KALAMAZOO COUNTY

                  Certain land in Alamo Township, Kalamazoo County, Michigan
                  described as:

                  The South 350 feet of the NW 1/4 of the NW 1/4 of Section 16,
                  T1S, R12W, being more particularly described as follows: To
                  find the place of beginning of this description, commence at
                  the Northwest corner of said section; run thence S 00 degrees
                  36' 55" W along the West line of said section 971.02 feet to
                  the place of beginning of this description; thence continuing
                  S 00 degrees 36' 55" W along said West line of said section
                  350.18 feet to the North 1/8 line of said section; thence S 87
                  degrees 33' 40" E along the said North 1/8 line of said
                  section 1325.1 feet to the West 1/8 line of said section;
                  thence N 00 degrees 38' 25" E along the said West 1/8 line of
                  said section 350.17 feet; thence N 87 degrees 33' 40" W,
                  1325.25 feet to the place of beginning.

                                 KALKASKA COUNTY

                  Certain land in Kalkaska Township, Kalkaska County, Michigan
                  described as:

                  The NW 1/4 of the SW 1/4 of Section 4, T27N, R7W, excepting
                  therefrom all mineral, coal, oil and gas and such other rights
                  as were reserved unto the State of Michigan in that certain
                  deed running from the Department of Conservation for the State
                  of Michigan to George Welker and Mary Welker, his wife, dated
                  October 9, 1934 and recorded December 28, 1934 in Liber 39 on
                  page 291 of Kalkaska County Records, and subject to easement
                  for pipeline purposes as granted to Michigan Consolidated Gas
                  Company by first party herein on April 4, 1963 and recorded
                  June 21, 1963 in Liber 91 on page 631 of Kalkaska County
                  Records.

                                   KENT COUNTY

                  Certain land in Caledonia Township, Kent County, Michigan
                  described as:

                  A parcel of land in the Northwest fractional 1/4 of Section
                  15, T5N, R10W, described as follows: To find the place of
                  beginning of this description commence at the North 1/4 corner
                  of said section, run thence S 0 degrees 59' 26" E along the
                  North and South 1/4 line of said section 2046.25 feet to the
                  place of beginning of this description, thence continuing S 0
                  degrees 59' 26" E along said North and South 1/4 line of said
                  section 332.88 feet, thence S 88 degrees 58' 30" W 2510.90
                  feet to a point herein designated "Point A" on the East bank
                  of the Thornapple River, thence continuing S 88 degrees 53'
                  30" W to the center thread of the Thornapple River, thence
                  NW'ly along the center thread of said

                                       22

<PAGE>
                  Thornapple River to a point which said point is S 88 degrees
                  58' 30" W of a point on the East bank of the Thornapple River
                  herein designated "Point B", said "Point B" being N 23 degrees
                  41' 35" W 360.75 feet from said above-described "Point A",
                  thence N 88 degrees 58' 30" E to said "Point B", thence
                  continuing N 88 degrees 58' 30" E 2650.13 feet to the place of
                  beginning. (Bearings are based on the East line of Section 15,
                  T5N, R10W between the East 1/4 corner of said section and the
                  Northeast corner of said section assumed as N 0 degrees 59'
                  55" W.)

                                   LAKE COUNTY

                  Certain land in Pinora and Cherry Valley Townships, Lake
                  County, Michigan described as:

                  A strip of land 50 feet wide East and West along and adjoining
                  the West line of highway on the East side of the North 1/2 of
                  Section 13 T18N, R12W. Also a strip of land 100 feet wide East
                  and West along and adjoining the East line of the highway on
                  the West side of following described land: The South 1/2 of NW
                  1/4, and the South 1/2 of the NW 1/4 of the SW 1/4, all in
                  Section 6, T18N, R11W.

                                  LAPEER COUNTY

                  Certain land in Hadley Township, Lapeer County, Michigan
                  described as:

                  The South 825 feet of the W 1/2 of the SW 1/4 of Section 24,
                  T6N, R9E, except the West 1064 feet thereof.

                                 LEELANAU COUNTY

                  Certain land in Cleveland Township, Leelanau County, Michigan
                  described as:

                  The North 200 feet of the West 180 feet of the SW 1/4 of the
                  SE 1/4 of Section 35, T29N, R13W.

                                 LENAWEE COUNTY

                  Certain land in Madison Township, Lenawee County, Michigan
                  described as:

                  A strip of land 165 feet wide off the West side of the
                  following described premises: The E 1/2 of the SE 1/4 of
                  Section 12. The E 1/2 of the NE 1/4 and the NE 1/4 of the SE
                  1/4 of Section 13, being all in T7S, R3E, excepting therefrom
                  a parcel of land in the E 1/2 of the SE 1/4 of Section 12,
                  T7S, R3E, beginning at the Northwest corner of said E 1/2 of
                  the SE 1/4 of Section 12, running thence East 4 rods, thence
                  South 6 rods, thence West 4 rods, thence North 6 rods to the
                  place of beginning.

                                       23

<PAGE>

                                LIVINGSTON COUNTY

                  Certain land in Cohoctah Township, Livingston County, Michigan
                  described as:

                                    Parcel 1

                  The East 390 feet of the East 50 rods of the SW 1/4 of Section
                  30, T4N, R4E.

                                    Parcel 2

                  A parcel of land in the NW 1/4 of Section 31, T4N, R4E,
                  described as follows: To find the place of beginning of this
                  description commence at the N 1/4 post of said section; run
                  thence N 89 degrees 13' 06" W along the North line of said
                  section, 330 feet to the place of beginning of this
                  description; running thence S 00 degrees 52' 49" W, 2167.87
                  feet; thence N 88 degrees 59' 49" W, 60 feet; thence N 00
                  degrees 52' 49" E, 2167.66 feet to the North line of said
                  section; thence S 89 degrees 13' 06" E along said North line
                  of said section, 60 feet to the place of beginning.

                                 MACKINAC COUNTY

                  Certain easement rights located across land in Moran Township,
                  Mackinac County, Michigan described as:

                  A 20 foot wide strip of land, 10 feet on each side of the
                  hereinafter described center line, through Lots 16, 17 and 21,
                  Block 12 of Partition Plat of Private Claim No. 1, Section 23,
                  Township 40 North, Range 4 West: Said center line being
                  described as beginning at Edison Sault Electric Company's
                  existing 35 foot service pole located 200 feet, more or less,
                  Northerly of the shoreline of the Straits of Mackinac, running
                  thence Easterly to a point approximately 20 feet Westerly of
                  the center line of Lakehead Pipeline Company's existing 20
                  inch pipeline, thence Northerly and Easterly along and
                  approximately 20 feet Westerly and Northerly of the center
                  line of said 20 inch existing pipeline to a certain Michigan
                  Bell Telephone Company's existing pole located Easterly of the
                  Westerly line of Lot 22, Block 12 of Partition Plat of Private
                  Claim No. 1 in said Section 23.

                                  MACOMB COUNTY

                  Certain land in Macomb Township, Macomb County, Michigan
                  described as:

                  A parcel of land commencing on the West line of the E 1/2 of
                  the NW 1/4 of fractional Section 6, 20 chains South of the NW
                  corner of said E 1/2 of the NW 1/4 of Section 6; thence South
                  on said West line and the East line of A. Henry Kotner's Hayes
                  Road Subdivision #15, according to the recorded plat thereof,
                  as recorded in Liber 24 of Plats, on page 7, 24.36 chains to
                  the East and West 1/4 line of said Section 6; thence East on
                  said East and West 1/4 line 8.93 chains; thence North parallel
                  with the said West line of the E 1/2 of the NW 1/4 of Section
                  6, 24.36 chains; thence West 8.93 chains to the place of
                  beginning, all in T3N, R13E.

                                       24

<PAGE>
                                 MANISTEE COUNTY

                  Certain land in Manistee Township, Manistee County, Michigan
                  described as:

                  A parcel of land in the SW 1/4 of Section 20, T22N, R16W,
                  described as follows: To find the place of beginning of this
                  description, commence at the Southwest corner of said section;
                  run thence East along the South line of said section 832.2
                  feet to the place of beginning of this description; thence
                  continuing East along said South line of said section 132
                  feet; thence North 198 feet; thence West 132 feet; thence
                  South 198 feet to the place of beginning, excepting therefrom
                  the South 2 rods thereof which was conveyed to Manistee
                  Township for highway purposes by a Quitclaim Deed dated June
                  13, 1919 and recorded July 11, 1919 in Liber 88 of Deeds on
                  page 638 of Manistee County Records.

                                  MASON COUNTY

                  Certain land in Riverton Township, Mason County, Michigan
                  described as:

                                    Parcel 1

                  The South 10 acres of the West 20 acres of the S 1/2 of the NE
                  1/4 of Section 22, T17N, R17W.

                                    Parcel 2

                  A parcel of land containing 4 acres of the West side of
                  highway, said parcel of land being described as commencing 16
                  rods South of the Northwest corner of the NW 1/4 of the SW 1/4
                  of Section 22, T17N, R17W, running thence South 64 rods,
                  thence NE'ly and N'ly and NW'ly along the W'ly line of said
                  highway to the place of beginning, together with any and all
                  right, title, and interest of Howard C. Wicklund and Katherine
                  E. Wicklund in and to that portion of the hereinbefore
                  mentioned highway lying adjacent to the E'ly line of said
                  above described land.

                                 MECOSTA COUNTY

                  Certain land in Wheatland Township, Mecosta County, Michigan
                  described as:

                  A parcel of land in the SW 1/4 of the SW 1/4 of Section 16,
                  T14N, R7W, described as beginning at the Southwest corner of
                  said section; thence East along the South line of Section 133
                  feet; thence North parallel to the West section line 133 feet;
                  thence West 133 feet to the West line of said Section; thence
                  South 133 feet to the place of beginning.

                                 MIDLAND COUNTY

                  Certain land in Ingersoll Township, Midland County, Michigan
                  described as:

                  The West 200 feet of the W 1/2 of the NE 1/4 of Section 4,
                  T13N, R2E.

                                       25

<PAGE>

                                MISSAUKEE COUNTY

                  Certain land in Norwich Township, Missaukee County, Michigan
                  described as:

                  A parcel of land in the NW 1/4 of the NW 1/4 of Section 16,
                  T24N, R6W, described as follows: Commencing at the Northwest
                  corner of said section, running thence N 89 degrees 01' 45" E
                  along the North line of said section 233.00 feet; thence South
                  233.00 feet; thence S 89 degrees 01' 45" W, 233.00 feet to the
                  West line of said section; thence North along said West line
                  of said section 233.00 feet to the place of beginning.
                  (Bearings are based on the West line of Section 16, T24N, R6W,
                  between the Southwest and Northwest corners of said section
                  assumed as North.)

                                  MONROE COUNTY

                  Certain land in LaSalle Township, Monroe County, Michigan
                  described as:

                  A strip of land 150 feet in width across part of the S 1/2 of
                  the SE 1/4 of Section 35, T7S, R8E, described as follows: To
                  find the place of beginning of this description commence at
                  the S 1/4 post of said section; run thence N 89 degrees 30'
                  20" E along the South line of said section 2118.39 feet to the
                  place of beginning of this description; thence continuing N 89
                  degrees 30' 20" E along said South line of said section 198.56
                  feet to the NW'ly right-of-way line of Highway I-75, so
                  called; thence N 40 degrees 26' 30" E along the NW'ly line of
                  said highway 477.72 feet to the East line of said section;
                  thence N 00 degrees 25' 15" W along the East line of said
                  section 229.27 feet; thence S 40 degrees 26' 30" W, 781.21
                  feet to the place of beginning.

                                 MONTCALM COUNTY

                  Certain land in Crystal Township, Montcalm County, Michigan
                  described as:

                  The N 1/2 of the S 1/2 of the SE 1/4 of Section 35, T10N, R5W.

                               MONTMORENCY COUNTY

                  Certain land in the Village of Hillman, Montmorency County,
                  Michigan described as:

                  Lot 14 of Hillman Industrial Park, being a subdivision in the
                  South 1/2 of the Northwest 1/4 of Section 24, T31N, R4E,
                  according to the plat thereof recorded in Liber 4 of Plats on
                  Pages 32-34, Montmorency County Records.

                                 MUSKEGON COUNTY

                  Certain land in Casnovia Township, Muskegon County, Michigan
                  described as:

                  The West 433 feet of the North 180 feet of the South 425 feet
                  of the SW 1/4 of Section 3, T10N, R13W.

                                       26

<PAGE>

                                NEWAYGO COUNTY

                  Certain land in Ashland Township, Newaygo County, Michigan
                  described as:

                  The West 250 feet of the NE 1/4 of Section 23, T11N, R13W.

                                 OAKLAND COUNTY

                  Certain land in Wixcom City, Oakland County, Michigan
                  described as:

                  The E 75 feet of the N 160 feet of the N 330 feet of the W
                  526.84 feet of the NW 1/4 of the NW 1/4 of Section 8, T1N,
                  R8E, more particularly described as follows: Commence at the
                  NW corner of said Section 8, thence N 87 degrees 14' 29" E
                  along the North line of said Section 8 a distance of 451.84
                  feet to the place of beginning for this description; thence
                  continuing N 87 degrees 14' 29" E along said North section
                  line a distance of 75.0 feet to the East line of the West
                  526.84 feet of the NW 1/4 of the NW 1/4 of said Section 8;
                  thence S 02 degrees 37' 09" E along said East line a distance
                  of 160.0 feet; thence S 87 degrees 14' 29" W a distance of
                  75.0 feet; thence N 02 degrees 37' 09" W a distance of 160.0
                  feet to the place of beginning.

                                  OCEANA COUNTY

                  Certain land in Crystal Township, Oceana County, Michigan
                  described as:

                  The East 290 feet of the SE 1/4 of the NW 1/4 and the East 290
                  feet of the NE 1/4 of the SW 1/4, all in Section 20, T16N,
                  R16W.

                                  OGEMAW COUNTY

                  Certain land in West Branch Township, Ogemaw County, Michigan
                  described as:

                  The South 660 feet of the East 660 feet of the NE 1/4 of the
                  NE 1/4 of Section 33, T22N, R2E.

                                 OSCEOLA COUNTY

                  Certain land in Hersey Township, Osceola County, Michigan
                  described as:

                  A parcel of land in the North 1/2 of the Northeast 1/4 of
                  Section 13, T17N, R9W, described as commencing at the
                  Northeast corner of said Section; thence West along the North
                  Section line 999 feet to the point of beginning of this
                  description; thence S 01 degrees 54' 20" degrees 1327.12 feet
                  to the North 1/8 line; thence S 89 degrees 17' 05" W along the
                  North 1/8 line 330.89 feet; thence N 01 degrees 54' 20" W
                  1331.26 feet to the North Section line; thence East along the
                  North Section line 331 feet to the point of beginning.

                                  OSCODA COUNTY

                  Certain land in Comins Township, Oscoda County, Michigan
                  described as:

                  The East 400 feet of the South 580 feet of the W 1/2 of the SW
                  1/4 of Section 15, T27N, R3E.

                                       27

<PAGE>

                                  OTSEGO COUNTY

                  Certain land in Corwith Township, Otsego County, Michigan
                  described as:

                  Part of the NW 1/4 of the NE 1/4 of Section 28, T32N, R3W,
                  described as: Beginning at the N 1/4 corner of said section;
                  running thence S 89 degrees 04' 06" E along the North line of
                  said section, 330.00 feet; thence S 00 degrees 28' 43" E,
                  400.00 feet; thence N 89 degrees 04' 06" W, 330.00 feet to the
                  North and South 1/4 line of said section; thence N 00 degrees
                  28' 43" W along the said North and South 1/4 line of said
                  section, 400.00 feet to the point of beginning; subject to the
                  use of the N'ly 33.00 feet thereof for highway purposes.

                                  OTTAWA COUNTY

                  Certain land in Robinson Township, Ottawa County, Michigan
                  described as:

                  The North 660 feet of the West 660 feet of the NE 1/4 of the
                  NW 1/4 of Section 26, T7N, R15W.

                               PRESQUE ISLE COUNTY

                  Certain land in Belknap and Pulawski Townships, Presque Isle
                  County, Michigan described as:

                  Part of the South half of the Northeast quarter, Section 24,
                  T34N, R5E, and part of the Northwest quarter, Section 19,
                  T34N, R6E, more fully described as: Commencing at the East 1/4
                  corner of said Section 24; thence N 00 degrees 15'47" E,
                  507.42 feet, along the East line of said Section 24 to the
                  point of beginning; thence S 88 degrees 15'36" W, 400.00 feet,
                  parallel with the North 1/8 line of said Section 24; thence N
                  00 degrees 15'47" E, 800.00 feet, parallel with said East line
                  of Section 24; thence N 88 degrees 15'36"E, 800.00 feet, along
                  said North 1/8 line of Section 24 and said line extended;
                  thence S 00 degrees 15'47" W, 800.00 feet, parallel with said
                  East line of Section 24; thence S 88 degrees 15'36" W, 400.00
                  feet, parallel with said North 1/8 line of Section 24 to the
                  point of beginning.

                  Together with a 33 foot easement along the West 33 feet of the
                  Northwest quarter lying North of the North 1/8 line of Section
                  24, Belknap Township, extended, in Section 19, T34N, R6E.

                                ROSCOMMON COUNTY

                  Certain land in Backus Township, Roscommon County, Michigan
                  described as:

                  A parcel of land the NW 1/4 of the NE 1/4 of the NE 1/4 of
                  Section 18, T22N, R2W described as commencing at the North
                  quarter corner thereof; thence North 89 degrees 00'56" East
                  along the North Section line 208 feet to the point of
                  beginning; thence continue East along the North line of said
                  Section 245 feet; thence South 00 degrees 59'03" East 233
                  feet; thence South 89 degrees 00'57" West 245 feet; thence
                  North 00 degrees 59'03" West 233 feet to the point of
                  beginning.

                                       28

<PAGE>

                                 SAGINAW COUNTY

                  Certain land in Chapin Township, Saginaw County, Michigan
                  described as:

                  A parcel of land in the SW 1/4 of Section 13, T9N, R1E,
                  described as follows: To find the place of beginning of this
                  description commence at the Southwest corner of said section;
                  run thence North along the West line of said section 1581.4
                  feet to the place of beginning of this description; thence
                  continuing North along said West line of said section 230 feet
                  to the center line of a creek; thence S 70 degrees 07' 00" E
                  along said center line of said creek 196.78 feet; thence South
                  163.13 feet; thence West 185 feet to the West line of said
                  section and the place of beginning.

                                 SANILAC COUNTY

                  Certain easement rights located across land in Minden
                  Township, Sanilac County, Michigan described as:

                  The Southeast 1/4 of the Southeast 1/4 of Section 1, T14N,
                  R14E, excepting therefrom the South 83 feet of the East 83
                  feet thereof.

                                SHIAWASSEE COUNTY

                  Certain land in Burns Township, Shiawassee County, Michigan
                  described as:

                  The South 330 feet of the E 1/2 of the NE 1/4 of Section 36,
                  T5N, R4E.

                                ST. CLAIR COUNTY

                  Certain land in Ira Township, St. Clair County, Michigan
                  described as:

                  The N 1/2 of the NW 1/4 of the NE 1/4 of Section 6, T3N, R15E.

                                ST. JOSEPH COUNTY

                  Certain land in Mendon Township, St. Joseph County, Michigan
                  described as:

                  The North 660 feet of the West 660 feet of the NW 1/4 of SW
                  1/4, Section 35, T5S, R10W.

                                 TUSCOLA COUNTY

                  Certain land in Millington Township, Tuscola County, Michigan
                  described as:

                  A strip of land 280 feet wide across the East 96 rods of the
                  South 20 rods of the N 1/2 of the SE 1/4 of Section 34, T10N,
                  R8E, more particularly described as commencing at the
                  Northeast corner of Section 3, T9N, R8E, thence S 89 degrees
                  55' 35" W along the South line of said Section 34 a distance
                  of 329.65 feet, thence N 18 degrees 11' 50" W a distance of
                  1398.67 feet to the South 1/8 line of said Section 34 and the
                  place of beginning for this description; thence continuing N
                  18 degrees 11' 50" W a distance of 349.91 feet; thence N 89
                  degrees 57' 01" W a distance of 294.80 feet; thence S 18
                  degrees 11' 50" E a

                                       29

<PAGE>
                  distance of 350.04 feet to the South 1/8 line of said Section
                  34; thence S 89 degrees 58' 29" E along the South 1/8 line of
                  said section a distance of 294.76 feet to the place of
                  beginning.

                                VAN BUREN COUNTY

                  Certain land in Covert Township, Van Buren County, Michigan
                  described as:

                  All that part of the West 20 acres of the N 1/2 of the NE
                  fractional 1/4 of Section 1, T2S, R17W, except the West 17
                  rods of the North 80 rods, being more particularly described
                  as follows: To find the place of beginning of this description
                  commence at the N 1/4 post of said section; run thence N 89
                  degrees 29' 20" E along the North line of said section 280.5
                  feet to the place of beginning of this description; thence
                  continuing N 89 degrees 29' 20" E along said North line of
                  said section 288.29 feet; thence S 00 degrees 44' 00" E,
                  1531.92 feet; thence S 89 degrees 33' 30" W, 568.79 feet to
                  the North and South 1/4 line of said section; thence N 00
                  degrees 44' 00" W along said North and South 1/4 line of said
                  section 211.4 feet; thence N 89 degrees 29' 20" E, 280.5 feet;
                  thence N 00 degrees 44' 00" W, 1320 feet to the North line of
                  said section and the place of beginning.

                                WASHTENAW COUNTY

                  Certain land in Manchester Township, Washtenaw County,
                  Michigan described as:

                  A parcel of land in the NE 1/4 of the NW 1/4 of Section 1,
                  T4S, R3E, described as follows: To find the place of beginning
                  of this description commence at the Northwest corner of said
                  section; run thence East along the North line of said section
                  1355.07 feet to the West 1/8 line of said section; thence S 00
                  degrees 22' 20" E along said West 1/8 line of said section
                  927.66 feet to the place of beginning of this description;
                  thence continuing S 00 degrees 22' 20" E along said West 1/8
                  line of said section 660 feet to the North 1/8 line of said
                  section; thence N 86 degrees 36' 57" E along said North 1/8
                  line of said section 660.91 feet; thence N 00 degrees 22' 20"
                  W, 660 feet; thence S 86 degrees 36' 57" W, 660.91 feet to the
                  place of beginning.

                                  WAYNE COUNTY

                  Certain land in Livonia City, Wayne County, Michigan described
                  as:

                  Commencing at the Southeast corner of Section 6, T1S, R9E;
                  thence North along the East line of Section 6 a distance of
                  253 feet to the point of beginning; thence continuing North
                  along the East line of Section 6 a distance of 50 feet; thence
                  Westerly parallel to the South line of Section 6, a distance
                  of 215 feet; thence Southerly parallel to the East line of
                  Section 6 a distance of 50 feet; thence easterly parallel with
                  the South line of Section 6 a distance of 215 feet to the
                  point of beginning.

                                       30

<PAGE>

                                 WEXFORD COUNTY

                  Certain land in Selma Township, Wexford County, Michigan
                  described as:

                  A parcel of land in the NW 1/4 of Section 7, T22N, R10W,
                  described as beginning on the North line of said section at a
                  point 200 feet East of the West line of said section, running
                  thence East along said North section line 450 feet, thence
                  South parallel with said West section line 350 feet, thence
                  West parallel with said North section line 450 feet, thence
                  North parallel with said West section line 350 feet to the
                  place of beginning.

                  SECTION 14. The Company is a transmitting utility under
Section 9401(5) of the Michigan Uniform Commercial Code (M.C.L. 440.9401(5)) as
defined in M.C.L. 440.9105(n).

                  IN WITNESS WHEREOF, said Consumers Energy Company has caused
this Supplemental Indenture to be executed in its corporate name by its Chairman
of the Board, President, a Vice President or its Treasurer and its corporate
seal to be hereunto affixed and to be attested by its Secretary or an Assistant
Secretary, and said The Chase Manhattan Bank, as Trustee as aforesaid, to
evidence its acceptance hereof, has caused this Supplemental Indenture to be
executed in its corporate name by a Vice President and its corporate seal to be
hereunto affixed and to be attested by a Trust Officer, in several counterparts,
all as of the day and year first above written.

                                       31

<PAGE>
                                       CONSUMERS ENERGY COMPANY

(SEAL)                             By  /s/ Laura L. Mountcastle
                                       -----------------------------------
                                           Laura L. Mountcastle
Attest:                                    Vice President and Treasurer

/s/ Joyce H. Norkey
----------------------------
Joyce H. Norkey
Assistant Secretary

Signed, sealed and delivered
by CONSUMERS ENERGY COMPANY
in the presence of

/s/ Kimberly C. Wilson
----------------------------
Kimberly C. Wilson

/s/ Sammie B. Dalton
----------------------------
Sammie B. Dalton

STATE OF MICHIGAN          )
                            ss.
COUNTY OF JACKSON          )

                  The foregoing instrument was acknowledged before me this _____
day of September, 2001, by Laura L. Mountcastle, Vice President and Treasurer of
CONSUMERS ENERGY COMPANY, a Michigan corporation, on behalf of the corporation.

                                       /s/ Margaret Hillman
                                       ----------------------------------------
                                       Margaret Hillman, Notary Public
[Seal]                                 Jackson County, Michigan
                                       My Commission Expires:  June 14, 2004

                                      S-1

<PAGE>

                                            THE CHASE MANHATTAN BANK, AS TRUSTEE

(SEAL)                                      By /s/ L. O'Brien
                                               -------------------------------
Attest:                                            L. O'Brien
                                                   Vice President

/s/ Natalie B. Pesce
----------------------------
Natalie B. Pesce
Trust Officer

Signed, sealed and delivered
by THE CHASE MANHATTAN BANK
in the presence of

/s/ Natalia Rodriguez
----------------------------
Natalia Rodriguez
Assistant Vice President

/s/ William S. Keenan
----------------------------
William S. Keenan
Assistant Vice President

STATE OF NEW YORK          )
                            ss.
COUNTY OF NEW YORK         )

                  The foregoing instrument was acknowledged before me this 26th
day of September, 2001, by L. O'Brien, a Vice President of THE CHASE MANHATTAN
BANK, a New York corporation, on behalf of the corporation.

                                        /s/ Emily Fayan
                                        ----------------------------------------
                                                                   Notary Public

[Seal]                                  New York County, New York
                                        My Commission Expires:

Prepared by:                            When recorded, return to:
Kimberly C. Wilson                      Consumers Energy Company
212 West Michigan Avenue                General Services Real Estate Department
Jackson, MI 49201                       Attn:  Nancy P. Fisher, P-21-410B
                                        1945 W. Parnall Road
                                        Jackson, MI 49201

                                      S-2

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