Vanessa Dietz/Daily Mining Gazette White Pine Electric Power plant will be curtailing operations due to a recent federal order.

HOUGHTON – While White Pine Electric Power laments a decision Thursday forcing the end of funds it used to operate, others tout the savings to Upper Peninsula ratepayers.

“For the first time since 2012, electric customers in the Upper Peninsula will not be paying federally-set system support resources (SSR) payments, which keep uneconomic electric plants that owners wish to retire running to maintain electric reliability,” the Michigan Agency for Energy said in a press release Thursday regarding a Federal Energy Regulatory Commission (FERC) order issued the same day that says the payments will end Nov. 26.

“We are extremely disappointed in today’s decision made by the FERC,” CEO Zach Halkola said in a statement Thursday on behalf of WPEP. “We will continue to operate in good faith with the counterparties and the State of Michigan on the processes to come, which will undoubtedly result in job losses.”

UPPCO also issued a press release that day in support of FERC’s order.

“We are please that FERC agreed with UPPCO’s position that the White Pine Unit 1 (one of three turbines at WPEP’s plant in White Pine) can be taken offline without risk to the reliability of our electric grid,” according to UPPCO’s press release. “The decision will result in $3 million of annual savings for our customers starting on Nov. 26.”

MAE added more details in the release and quoted other state officials.

“Overall, U.P. residents have paid more than $25 million in SSR payments since 2012, and if Michigan is unsuccessful in pending legal challenges, may be required to pay up to an additional $48 million for past charges,” according to the MAE release said. “FERC approved ending the final SSR in place for White Pine … stopping ongoing SSR payments and saving U.P. residents roughly $28 million through the end of 2019, or more than $7 million a year.”

“As we celebrate the Thanksgiving Day holiday, electric customers in the U.P. can be truly thankful that they have reliability at a much lower cost than they did in previous years, when they were paying federally-set charges that were not put to the smell test,” said Valerie Brader, executive director of the Michigan Agency for Energy. “Thanks to Michigan’s vigorous legal intervention on behalf of U.P. residents and a cooperative, creative approach from the entities charged with ensuring reliability, there will be a little extra money in consumers’ pockets this winter.”

“This is a big win for utility customers in the U.P.,” said Sally Talberg, chairman of the Michigan Public Service Commission (MPSC). “The MPSC has been strongly advocating with other agencies and stakeholders to put an end to these charges while ensuring our power system in the U.P. is reliable.”

“p1″>”Michigan residents can be confident we will continue to fight against unreasonable charges at every opportunity,” said Michigan Attorney General Bill Schuette.  “We will also continue to press the federal government to approve new rules that will stop putting these charges on people’s bills before consumer advocates have a chance to make sure they are fair.”