Some Upper Michigan residents to see 15% electric rate increase

Upper Michigan Energy Resources Corp. customers will see a roughly $10.50 increase on their monthly electric bills starting in January.

The price change is result of the Michigan Public Service Commission’s approval earlier this week of a $6.6 million rate increase for UMERC, a 40% reduction from the utility’s original request of $11.1 million. The money will primarily fund infrastructure investments and safety and reliability maintenance.

The Michigan Department of Attorney General, Citizens Utility Board of Michigan and Billerud Americas Corp. all intervened in the case. The settlement is UMERC’s first electric rate case since the utility was approved to service customers in December 2016.

The agreement also required UMERC to opt into the state’s Low Income Energy Assistance Fund, implement a residential income allowance and senior bill assistance program, and implement a rate realignment plan to gradually unify rates for its two service territories, Wisconsin Electric Power Co. and Wisconsin Public Service Corp.

A typical residential customer using 500 kilowatt-hours a month in the former WEPCO service territory will see an increase of $10.51 on their monthly electric bill, but the rate realignment charge will eventually decrease by 21 cents by 2033.

A typical customer using the same amount of energy in the former WPSC territory will see an increase of $10.48 monthly, and the rate realignment change will increase annually, adding an additional $4.24 by 2033.

The MPSC also approved UMERC’s gas cost recovery plan, and the construction of a 2.1 mile long natural gas pipeline in Menominee County.