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Higher UPPCO bills coming with new year

Starting Wednesday, Upper Peninsula Power Company customers will see a 5.7% rate increase on their monthly bill.

A Sept. 26 release from the Michigan Public Service Commission states a typical residential customer using 500 kWh a month will see an increase of $7.52, which will generate an additional $6.6 million for the electricity provider in 2025. The average energy consumption per household is 900 kWh per month, according to the U.S. Energy Information Administration.

“The rate realignment charge will increase annually until 2033, resulting in an additional increase of $4.24, or 5.5%, by January 1, 2033,” the MPSC release states.

The increase, according to the MPSC, is intended to provide Upper Michigan Energy Resources Corp. revenue for infrastructure investments in new generation, maintaining safety and reliability and other factors.

Part of those infrastructure investments are tied directly to the recent passage of Michigan’s alternative energy drive to reduce carbon emissions to zero by 2040.

At an October open house in Ishpeming, Dan Freeborn, UPPCO’s manager of communications and external affairs, said the increase is due to PA 235’s goal to establish a 50% renewable energy standard by 2030, 60% by 2035 and 100% by 2040.

UPPCO already charges about 67% higher than the average rate in Michigan.

According to Find Energy, UPPCO averages 26.52 cents per kWh for residential electricity, while the average price in Michigan is 19.03 cents. Both are higher than the national average of 15.77 cents.

UPPCO serves about 54,000 customers in 10 counties in the Upper Peninsula.

Starting at $2.99/week.

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