LANSING, MI— Michigan Attorney General Dana Nessel is arguing for significant reductions to Upper Peninsula Power Company’s latest rate hike request.
UPPCO filed a request with the Michigan Public Service Commission in March for a 16-percent increase in electric rates for all customers. That would raise an additional $16.9 million for the company.
The utility also aims to raise its profit margin on infrastructure investments from 9.9 percent to 10.7 percent. UPPCO says the rate hike is needed to offset infrastructure investments and operational expenses.
Nessel says the rate hike should be cut by 60 percent to $7 million and argues that UPPCO’s return on equity should be limited to 9.86 percent, aligning it more closely with other utilities in Michigan. She calls the levels of operations and maintenance expenses espoused by UPPCO “unreasonable.”
UPPCO’s last rate hike was approved in March of 2023.
