UPPCO to hike utility rates by $9 million
LANSING, Mich. — State Sen. Ed McBroom, joined by state Reps. Dave Prestin and Greg Markkanen, on Monday expressed their frustrations after the Upper Peninsula Power Company (UPPCO) announced it would be raising energy rates in response to Michigan’s radical green energy laws passed along strict party lines last year.
The new laws, sponsored by Rep. Jenn Hill, D-Marquette, mandate Michigan green energy production and zero carbon emissions, along with allowing solar siting plans that can override local zoning. These are the first energy laws passed along partisan lines and only passed the Legislature by one vote. The new laws paved the way for UPPCO, which already charges the highest rates in Michigan, to raise utility rates to levels unseen by residents of the Upper Peninsula.
“The energy rewrite pushed through the Legislature is out of touch with the U.P. economy and people,” said McBroom, R-Waucedah Township. “Five of six of the U.P. legislative delegation voted ‘no’ because the statewide estimate was an eventual 10 to 11% rate increase with an additional 12% increase in the U.P. specifically. This is the start of that dramatic climb.”
The Michigan Public Service Commission just approved a $9 million rate hike requested by UPPCO. Because of the new law, UPPCO will have to transition to less reliable, weather-dependent energy power sources and zero carbon emissions while also continuing to provide utility services for U.P. ratepayers
During a series of town halls, UPPCO officials said the new green energy laws forced them to explore rate increases during a time when supply chain limitations and inflation have been difficult to navigate. They added that each customer can expect a 5.6% monthly bill increase from the looming rate hikes as the new law implementation just gets started.
“U.P. utility companies were already transitioning from coal to clean-burning natural gas power, yet the legislators and others with this anti-petroleum agenda decided that even natural gas wasn’t green enough,” said Prestin, R-Cedar River. “The whole U.P. team should’ve sided with the people of the U.P. instead of a radical, environmentalist agenda that puts the U.P. and its jobs at risk. Make no mistake, any legislator who supported this law owns this rate increase just as much as UPPCO and the Public Service Commission does.”
In a statement released after the passage of the radical new laws, Rep. Hill celebrated the plan and said her vote would result in lower energy costs for U.P. residents. Less than a year later, the deciding vote will result in unprecedented energy costs for U.P. ratepayers.
“Residents across the U.P. are already suffering from the devastating effects of runaway inflation; now they have to find a way to afford the energy rate increases too,” said Markkanen, R-Hancock. “These radical, agenda-driven policies will always force the people to pay more. The U.P. is tired of people who celebrate expensive bad ideas. We need a U.P. legislative team that has all its members putting jobs and affordability for U.P. residents first.”
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