MARQUETTE, Mich. (WJMN) – Upper Peninsula Power Company (UPPCO) announced that the Michigan Public Service Commission (MPSC) has approved a settlement agreement that was reached in the UPPCO’s rate review case that was pending before the Commission.

The settlement includes an increase in base rates charged to all customers, as well as a residential income assistance credit for low-income customers. The agreement also contains an increased cap for customer-owned distributed generation from 3% to 4.5% and $200,000 in corporate donations to non-profit organizations that serve low-income citizens.

Under the settlement, the monthly bill for a residential customer that consumes 500 kilowatt hours of energy will increase from $121.08 to $133.38; an increase of $12.30 or 10.1%.

“UPPCO’s base rates haven’t increased since the company’s last rate review case was approved by the MPSC nearly 4 years ago,” said Brett French, UPPCO’s Vice-President of Business Development and Communications. “During that time, UPPCO has successfully contained costs while making significant investments that improve upon customer service and increase the reliability and resiliency of its distribution system.” 

The new rates will go into effect beginning July 1, 2023. UPPCO says the updated rates reflect the actual cost of providing electric utility service.

“When compared against the rate of inflation over the past 4 years, this increase is actually lower than the compounded rate of inflation—a testament to the company’s ongoing efforts to contain costs and deliver exceptional value to the customers we serve,” French said.