CONSUMERS POWER <CMS> TO PAY UNION CARBIDE <UK>
Consumers Power Co said it will
pay Union Carbide Corp 39.2 mln dlrs in settlement of a suit
that began in July 1982.
    Consumers Power said the settlement will cause it to take a
one-time loss of six mln dlrs, or seven cts a share, in its
first quarter.
    The impact will be less than the payment to Union Carbide
because Consumers Power set up a reserve to account for the
settlement, the tax effect of the settlement, and "some
book-keeping," a spokesman said.
    Union Carbide had sought 162.5 mln dlrs in damages from
Consumers Power.
    Half of the settlement will be paid immediately in cash.
The remainder will be paid in real estate.
    The dispute involved a long-term contract which Consumers
Power entered into in 1980 to buy residual fuel from Union
Carbide. In 1982 Consumers Power stopped taking oil under the
contract, claiming it was excused from buying more oil under
certain provisions of the accord.
    Union Carbide said it plans to resell the real estate,
located in northern Michigan, according to Consumers Power.
 Reuter
