Michigan Public Service Commission approves energy rate hikes, finalizes renewable energy approval process

October 10, 2024

ESCANABA, Mich. (WLUC) – The Michigan Public Service Commission was in Escanaba to provide information about energy assistance to the community on Thursday night.

The Michigan Public Service Commission (MPSC) has approved a settlement agreement allowing the Upper Michigan Energy Resources Corporation (UMERC) to raise rates by $6.6 million.

The MPSC says it is the first electric rate increase since 2016, and the agreement was approved during a regular commission meeting at Bay College.

Customers in the service territory will see an increase of approximately $10.51 starting Jan. 1.

Chair Dan Scripps says making this decision at a meeting in the U.P. is part of their goal for transparency in its decision-making.

“It’s a way of getting out into the communities that we serve across the state and showing the role that we have in overseeing rates and the broader infrastructure related to energy and telecommunications to the public that’s most affected by our decisions,” Scripps said.

However, while announcing that rates will rise, the MPSC says the UMERC has agreed to opt into the state’s Low Income Energy Assistance Fund starting January 2026.

The fund will raise up to $50 million each year for energy assistance programs.

Scripps believes meetings like these will positively impact the region’s energy challenges

“Hearing directly about the unique characteristics of the U.P. energy mix and how it affects those who pay the bills up here, I think, is one of the most important things that we can do,” Scripps said.

Renewable energy was also addressed this Thursday.

The MPSC finalized concrete instructions and procedures related to the new process for seeking approval from the state for large-scale solar and wind projects.

This comes after Gov. Gretchen Whitmer transferred decision-making power from local governments to the state.

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