Michigan's attorney general is asking regulators to cut a proposed Upper Peninsula Power Company electric rate hike. UPPCO seeks an additional $17.3 million in annual revenue, which the attorney general says would mean a 15.6% average increase for residential customers. Neither the company request nor the attorney general's counterproposal is an approved new customer rate.
In testimony filed jointly with the Citizens Utility Board of Michigan, Attorney General Dana Nessel argued Friday that any increase should be no more than $9.9 million, a cut of roughly 42% from the request. The attorney general also opposed UPPCO's requested return on equity increase from 9.86% to 10.55%, proposing instead 9.47%. These percentages concern the utility's allowed return, not the rate printed on a household bill.
Another household-level dispute is the residential fixed monthly charge. Nessel said the proposed $15 charge should be reduced to $10.87. A fixed charge applies even when a household uses less electricity, so its size can matter to customers who conserve power. The attorney general also objected to a proposed storm-restoration expense tracker that, she says, could lead to adjustments between the normal public rate cases. The Michigan Public Service Commission will decide the case.
UPPCO serves approximately 53,000 Upper Peninsula customers, according to the attorney general's office. A 15.6% average residential increase is not a quote for a particular home: usage, rate design and whatever the commission ultimately approves will determine that amount. Financialist's money-rights hub addresses other household expenses, including bank fees and medical bills; it does not calculate UPPCO electric charges. Customers should use their utility's rate documents and the commission's final order for bill-specific figures.