Yesterday, the Michigan Public Service Commission (MPSC) approved a settlement in Northern States Power Company's (NSP) electric rate case request. This development was announced by Michigan Attorney General Dana Nessel. Due to the Attorney General's intervention, the proposed increase for residential customers was significantly reduced.
In July, NSP had requested a $5.69 million increase, which would have resulted in a 31.9% hike in customers' electric rates. Before any testimony was filed in the case, Attorney General Nessel engaged in settlement discussions with both the MPSC and NSP. These efforts led to an agreement that lowered the initial request from $5.69 million to $2.3 million and included a moratorium on future rate hikes until 2027. Consequently, what would have been a 31.9% increase has been reduced to 13.5%, with its impact spread over two years.
"By securing a settlement that slashes NSP’s electric rate hike request by more than 60% and preventing any further increases until 2027, we’ve significantly reduced the financial burden on ratepayers," said Nessel. "My office remains committed to advocating for utility customers across the state."
NSP provides electricity to approximately 9,100 customers located in Bergland Township, Bessemer, Bessemer Township, Erwin Township, Ironwood, Marenisco Township, and McMillan Township within Michigan's Upper Peninsula.