LANSING, MI-- The Michigan Public Service Commission has approved a rate increase for Upper Peninsula Power Company, though most customer bills will drop.
UPPCO requested a rate increase of nearly $10 million in September. The company also sought to increase its service charge by $10 a month for residential customers.
Thursday’s settlement between the MPSC, UPPCO and Attorney General Dana Nessel’s office allows the utility to raise its rates by $1.8 million. The service charge increases were eliminated.
Rates will decrease in June for about 40,000 customers. It means a savings of 1.55 percent—or $1.76—for the average residential customer.
UPPCO is eliminating its Iron River district, which means a 2.3 percent increase for about 3,300 customers who live in Iron River, Stambaugh, Caspian, Gaastra, Mineral Hills, and the surrounding areas.
Under the settlement, UPPCO has agreed to spend at least $4.9 million this year on advanced metering infrastructure to increase meter reading accuracy.
The overall rate decrease comes at a time when a refund from the federal Tax Cuts and Jobs Act’s lower corporate tax structure is ending.
