Michigan Commission Approves $6.6 million Increase in Upper Michigan Energy Resources’ First Electric Rate Case

The Michigan Public Service Commission on Oct. 10 approved a settlement allowing Upper Michigan Energy Resources Corp. to increase its rates by $6.6 million. This is the utility’s first electric rate case since it was authorized to serve customers in December 2016. The amount approved is over 40 percent less than the utility’s initial request. The settlement agreement permits the utility to earn an authorized rate of return of 9.86 percent and a common equity ratio of 50 percent.

Starting next year, residential customers using 500 kWh per month will see a $10.51 (15.4 percent) increase in the former Wisconsin Electric Power Co. area, with the rate realignment charge decreasing annually resulting in additional reductions by 2033. In the former Wisconsin Public Service Corp. area, bills will rise by $10.48 (15.8 percent), with the realignment charge increasing annually, resulting in further bill increases by 2033.

Under the agreement, the utility will begin participating in Michigan’s Low Income Energy Assistance Fund in 2026, which provides up to $50 million annually for energy assistance and self-sufficiency programs. The utility also committed to implementing a residential income allowance and a senior bill assistance program to support vulnerable customers. In its next electric rate case, the company will propose an electric vehicle pilot program and associated tariff, along with more detailed descriptions of its distribution investments.

The utility is also authorized to implement a rate realignment plan in order to gradually unify the rates of its two service territories – Wisconsin Electric Power Co. and Wisconsin Public Service Corp.