Not good news for Cliffs Natural Resources
MARQUETTE COUNTY -- The next phase of electric rate increases will be showing up this month, and this could impact the future of a major Marquette County employer.
WE Energies filed for a rate increase with the Michigan Public Service Commission to be implemented in three phases. This is to cover costs to fix the aging energy infrastructure.
In Michigan, rate hikes cannot be done until the changes are done so that means a large increase over a short period of time.
The first phase went into effect in January and was self implemented by WE Energies.
Phase 2 is set for July, and the approved amount by the PSC is $23.3 million, 45 percent less than the utility company had requested.
The average cost for a home using 500 kilowatts a month, your bill from WE Energies will go up by $6.14.
For large businesses, the rate is decided by use and rate class. And that amount is huge for a company like Cliffs Natural Resources.
Cliffs spokesman Dale Hemmila says this represents an additional cost to the company of $14.4 million a year. He says this may put jobs at risk as well as risks the operation and expansion at the Empire Mine including the proposed iron nugget plant.
The third and final rate hike will be coming in a few months.