Morning Report for May 16, 2001

                       Headquarters Daily Report

                         MAY 16, 2001

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                    REPORT             NEGATIVE            NO INPUT
                    ATTACHED           INPUT RECEIVED      RECEIVED

HEADQUARTERS                           X
REGION I                               X
REGION II                              X
REGION III          X
REGION IV                              X
PRIORITY ATTENTION REQUIRED  MORNING REPORT - REGION III  MAY 16, 2001

Licensee/Facility:                     Notification:

Consumers Power Co.                    MR Number: 3-01-0010
Palisades 1                            Date: 05/16/01
Covert,Michigan                        Resident Inspector
Dockets: 50-255
PWR/CE

Subject: TRANSFER OF PALISADES TO NUCLEAR MANAGEMENT COMPANY

Discussion:

On May 15, 2001, Nuclear Management Company, LLC (NMC), began managing
operations at the Palisades Nuclear Plant following U.S. Nuclear
Regulatory Commission approval on April 19, 2001, to transfer operating
authority for the plant to NMC. The NRC acted on a request from Consumers
Energy Company to amend the plant's license to identify NMC as the
operator of Palisades. Consumers Energy will continue to own the plant.
Palisades joins Kewaunee, Point Beach, Duane Arnold, Monticello, and
Prairie Island which are also operated by NMC.

Regional Action:

Information Only

Contact:  Anton Vegel                (630)829-9620
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