NEWS RELEASE
OFFICE OF ATTORNEY GENERAL
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LANSING – Yesterday, the Michigan Public Service Commission (MPSC) approved a settlement in Upper Michigan Energy Resources (UMERC) electric rate increase request, announced Michigan Attorney General Dana Nessel. The requested increase was reduced by more than 50 per cent for residential customers due in part to the attorney general's intervention.
In May of this year, UMERC filed a request for a $11.2-million increase in its electric rates which, if approved, would have increased UMERC’s residential customers’ electric rates by 18.7 per cent. UMERC also sought a 10.25 per cent return on equity which would have been the highest in the state and nearly the highest in the country.
Attorney General Nessel intervened alongside the Citizens Utility Board of Michigan and secured a settlement reducing the $11.2 million request to $6.6 million, and reducing the impact on residential customers from a 18.7 per cent rate hike to 9.9 per cent. In addition, the settlement reduced the return on equity to 9.86 per cent, created a residential income allowance program, a senior bill assistance program, and required UMERC to join the Low-Income Energy Assistance Program by its next rate case – programs that aim to keep customers’ monthly energy bills more affordable.
"By reducing UMERC's electric rate hike request by 50 per cent and establishing programs to keep monthly energy bills more affordable, we've secured a settlement that delivers vital support to ratepayers,” Nessel said. “My office will continue to advocate for utility customers and put their needs ahead of corporate shareholders.”
UMERC sells electricity to more than 37,000 customers in Alger, Baraga, Delta, Dickinson, Gogebic, Houghton, Iron, Marquette, Menominee, and Ontonagon counties in the Upper Peninsula.
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