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An electric rate hike proposed by Upper Peninsula Power Co. would increase rates for residential customers by 15.6%, according to Michigan Attorney General Attorney General Dana Nessel, who has filed testimony against the request.
UPPCO is seeking a $17.3 million increase through the Michigan Public Service Commission. Nessel says the increase should be cut to $9.9 million.
"The company is also seeking to increase its profit margin on capital investments from 9.86% to 10.55%, which would make it the highest return on equity in the state and likely one of the highest in the nation," Nessel said Friday in a news release.
Nessel argued to the Commission that UPPCO should only receive a 9.47% return on equity, that the Commission should reject the company's storm restoration expense tracker, and that the Commission should reduce UPPCO's proposed residential fixed monthly charge from $15 to $10.87.
"Electric rates for UPPCO's residential customers are already significantly higher than the national average, and it's essential that the MPSC consider this when examining the reasonableness of further rate hikes," Nessel said. "The MPSC should also reject mechanisms, like the one UPPCO proposes in this case for storm costs, because they only allow the utility to raise rates even higher outside of the usual, public rate review process."
Nessel's testimony was filed at the Commission earlier this week with the Citizens Utility Board of Michigan.
UPPCO sells electricity to approximately 53,000 customers in the Upper Peninsula, including part of Iron County.
The company says it's facing significant increases in the cost of equipment, construction materials, supplies, and labor associated with capital projects and long-term system improvements.
More information on UPPCO's proposed rate review can be found at https://www.uppco.com/news-releases/2026-rate-review/.