LANSING, Mich. (AP) — Officials say a settlement between Michigan regulators and Upper Peninsula Power Co. will lower electric rates for most residential customers, although some will pay more.

The Michigan Public Service Commission says the deal approved this week will give about 40,000 ratepayers a reduction, beginning in June. It will amount to $1.76 per billing period for those using 500 kilowatt hours per month.

Bills for about 3,300 customers using the same amount of power will rise. That’s because UPPCO is combining its two residential rate schedules and eliminating the Iron River District. Affected customers will get a rate increase of $2.51.

The settlement allows UPPCO to boost rates by $1.8 million. The company sought a nearly $10 million increase when filing its initial request in September 2018.