The Michigan Public Service Commission (MPSC) has approved a settlement regarding Upper Michigan Energy Resources' (UMERC) request for an electric rate increase. The decision, announced by Michigan Attorney General Dana Nessel, significantly reduces the initially proposed hike.
In May, UMERC sought approval for an $11.2 million increase in electric rates, which would have resulted in an 18.7% rise for residential customers. Additionally, UMERC aimed for a 10.25% return on equity, potentially the highest in the state and nearly nationwide.
Attorney General Nessel intervened with support from the Citizens Utility Board of Michigan. Their efforts led to a settlement that lowered the requested increase to $6.6 million and reduced the residential rate hike impact to 9.9%. The agreement also adjusted the return on equity to 9.86%.
The settlement includes provisions for a residential income allowance program and a senior bill assistance program. It mandates UMERC's participation in the Low-Income Energy Assistance Program by its next rate case to help keep energy bills manageable.
"By reducing UMERC's electric rate hike request by 50% and establishing programs to keep monthly energy bills more affordable, we've secured a settlement that delivers vital support to ratepayers,” said Nessel. “My office will continue to advocate for utility customers and put their needs ahead of corporate shareholders.”
UMERC provides electricity services to over 37,000 customers across several counties in Michigan's Upper Peninsula.