Hearing scheduled on UPPCO plan
Set for Nov. 10
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LANSING -- The Michigan Public Service Commission (MPSC) has issued a revised notice of hearing for the Upper Peninsula Power Company's (UPPCO) proposed 2027 Power Supply Cost Recovery (PSCR) plan.
The public hearing is scheduled for Nov. 10, 2026, at 10:30 a.m. Eastern time. The proceeding will be conducted via video conference to review UPPCO’s application under MPSC Case No. U-22088.
The filing seeks regulatory approval to implement a specific PSCR plan and seasonal cost factors for the 12 months ending Dec. 31, 2027. The PSCR mechanism allows the utility to adjust customer billing rates to reflect fluctuating costs associated with fuel purchases and purchased wholesale electricity power. UPPCO sells electricity to approximately 53,000 customers in the Upper Peninsula.
Members of the public can participate in the virtual session or monitor the proceedings through a video link or telephone dial-in instructions provided by the commission. According to the administrative notice, any person or municipal entity seeking to formally intervene in Case No. U-22088 must file a written petition to intervene with the MPSC by Nov. 3, 2026. The full administrative file and instructions for filing public comments are available on the Michigan Public Service Commission document portal.
The upcoming power supply hearing follows a separate, pending application by UPPCO for a $17.3 million base rate increase. If approved by the MPSC, that request would result in an average 15.6% jump for residential customers across the Upper Peninsula.
According to statements published on UPPCO's website, the proposed rate review is intended to address an under-recovery of revenue required to operate the electric system. The utility cited rising operating costs across multiple sectors of the business, including purchased power, vehicle fuel, vegetation management, contractor services, and routine system maintenance. UPPCO also noted increased expenditures for capital projects, equipment, and construction materials required to upgrade poles, wires, substations, and regional grid technology.
In a statement issued in September, State Representative David Prestin (R-Cedar River) opposed the $17.3 million rate hike, citing the regional impact of existing utility costs.
“UPPCO wants another $17.3 million rate hike -- a 15.6% jump for residential customers in the Upper Peninsula, where rates are already well above the national average,” Prestin said. “Our communities get stuck with higher bills while UPPCO seeks one of the highest returns on equity in the country.”
Prestin added that while the active rate case does not encompass upcoming state green energy mandates, future compliance requirements will require additional infrastructure expenditures.
“Energy policy should focus on lower bills and a more reliable grid,” Prestin said. “Our communities shouldn't have to foot the bill for Lansing's ideological experiments.”
Michigan Attorney General Dana Nessel also went on record opposing the base rate request, filing formal testimony urging the MPSC to cut UPPCO’s electric rate hike proposal by 42%.
"Electric rates for UPPCO's residential customers are already significantly higher than the national average, and it's essential that the MPSC consider this when examining the reasonableness of further rate hikes," Nessel said in a statement.
Nessel also requested that the commission reject additional adjustment mechanisms proposed by the utility.
"The MPSC should also reject mechanisms, like the one UPPCO proposes in this case for storm costs, because they only allow the utility to raise rates even higher outside of the usual, public rate review process," Nessel said.