The Michigan Public Service Commission (MPSC) approved settlements in rate increase requests from the Upper Peninsula Power Company (UPPCO) on Thursday.Michigan Attorney General Dana Nessel her intervention was able to help secure a “significant reduction in the requested rate hike”.
UPPCO filed a request for a $16.9 million increase in its electric rates in March that would have increased residential customers’ rates by 13.6%. UPPCO also sought a 10.7% return on equity, which would have been among the highest in the country.
Attorney General Nessel and other intervenors worked to reduce the $16.9 million requested increase to $9 million, a nearly 50% reduction overall. In addition, she was able to reduce a proposed 13.6% increase in residential electric rates to 5.7%, a 58% reduction, and reduce the return on equity from the requested 10.7% to 9.86%. The settlement also requires UPPCO to donate $200,000 to low-income customers to assist customers struggling to pay their electric bills.
“This has been a busy year, with multiple utilities seeking rate increases at the same time, but my office has been vigilant in aggressively reviewing and litigating these cases to protect customers around the state,” Nessel said. “Our efforts have reduced proposed double-digit residential rate hikes by 58% for UPPCO customers. We will continue to advocate for reliable service and reasonable rates for Michigan residents.”
UPPCO has approximately 53,000 customers located in 10 of the Upper Peninsula’s 15 counties.
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