MARQUETTE, Mich. (WLUC) - Upper Peninsula Power Company (UPPCO) announced the Michigan Public Service Commission (MPSC) approved the settlement that was reached in its rate case, the company said Thursday.
The approved settlement adjusts the rates being charged to all customers to reflect the cost of service, returns the full benefit of the Federal Tax Cuts and Jobs Act of 2017, captures cost reductions achieved by UPPCO for energy purchases, recovers investments being made in the Smart Energy advanced metering infrastructure project and increases the cap for customer-owned distributed generation to 2 percent.
“It was encouraging that all eight parties in the case were able to reach settlement,” said Jim Larsen, UPPCO’s Chief Executive Officer. “Overall, UPPCO has reduced rates for residential customers by 12 percent and Industrial customers by 33 percent since the last rate case, 3 years ago. This case consolidates many of those savings and simplifies the rates being charged by the Company.”
“As a state-regulated utility, the Company routinely submits regulatory filings to the MPSC to comply with Michigan’s laws and regulations,” said Brett French, UPPCO’s Vice-President of Business Development and Communications. “Under the approved settlement, a typical residential customer that consumes 500 kilowatt hours of energy per month will save approximately $2 off their monthly energy bill. Commercial and some industrial customers will see moderate increases in their rates; however, the new rates are still lower than the rates that were approved by the MPSC in 2014. Overall, these reductions reflect the Company’s continued efforts to stabilize rates and provide increased value to our customers.”
The MPSC approved settlement also includes the Company’s advanced meter reading infrastructure project. “Our Smart Energy project is designed to improve upon reliability, deliver increased customer service and eliminate the current practice of reading meters every other month,” said French.
The new rates will go into effect beginning with the June billing cycle.