Nessel secures MPSC settlement in UPPCO rate increase request

The Michigan Public Service Commission (MPSC) has approved a settlement in Upper Peninsula Power Company’s (UPPCO) rate increase request after Michigan Attorney General Dana Nessel intervened to secure a 60% reduction, low-income customer affordability funds, and a fixed-term moratorium on future rate increases.  

“With this settlement we’ve secured significant savings and support for ratepayers across the Upper Peninsula,” said Nessel. “This settlement greatly reduces the utility company’s rate increase request as well as creates and funds assistance for many customers struggling to pay their energy bills.”

UPPCO had been seeking a $25.3 million increase in electric rates, this settlement brings that increase down by nearly 60% to $10.8 million. The company’s request would have raised residential customer rates by over 25% and increased the monthly customer charge from $15 to $29.

Working with the Citizens Utility Board of Michigan and MPSC staff, the terms of the settlement secured by the attorney general include:

• A nearly 60% reduction of the requested rate increase, generating $10.8 million in utility revenue, down from the $25.3 million sought.

• The elimination a proposed $14 dollar per month increase to the customer charge.

• A moratorium preventing any future rate increases until 2025.

• A donation from UPPCO of $200,000 to assist low-income customers with bill affordability.

• The creation of a residential income assistant program that provides a $15 credit to the customer’s bill.

• An increase in the distributed generation cap from 3% to 4.5%.


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