UPPCO explains utility rate increase, renewable energy transition at Ishpeming open house

October 22, 2024

ISPHEMING, Mich. (WLUC) – The Upper Peninsula Power Company (UPPCO) is working to meet Michigan’s Green Energy Laws.

UPPCO held an open house in Ishpeming to explain how it will meet the requirements of the new Michigan Energy Laws.

UPPCO Manager of Communications and External Affairs Dan Freeborn says UP customers who use 500-kilowatt hours of electricity each month should expect a 5.6% increase in their monthly bill starting January 1st, Freeborn explains why rates are increasing.

“Well, the need to continue investing in our distribution infrastructure and then of course like every other business around inflation has put some pressure on the business that we do, and supply chain constraints have been a piece of that as well,“ Freeborn said.

Freeborn says the Michigan Energy Laws are broken into three categories.

The Renewable Energy Standards goal is to establish a statewide renewable energy standard of 50% by 2030 and 60% by 2035.

The Clean Energy Standard establishes a statewide clean energy standard of 80% by 2035 and 100% by 2040.

Freeborn says a portion of the energy UPPCO already produces is renewable.

“We have 7 hydroelectric facilities that generate 20 percent of our power at this point,” Freeborn said. “So, it’s something we are familiar with, the new energy laws that were put in place in 2023 give us a unique opportunity to expand on that.”

Freeborn says UPPCO is also working on an integrated resource plan to meet the state’s green energy laws.

“It’s a comprehensive plan for utility companies to put forth the basic needs of what we need to do to comply with those requirements and how we are going to be able to deliver reliable and cost-effective energy for our customers,” Freeborn said. “It is about a 5-year plan that we are putting out and it’s very common for utility companies to file every 5 years.”

Freeborn says UPPCO has two planned solar projects.

One project is in Republic, and another is the Groveland Mine solar project in Dickinson County, and these are set to begin operations in 2027 and 2028 respectively.

There will be another UPPCO open house at the Finnish American Heritage Center in Hancock at 6 p.m. on Wednesday.

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