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HOUGHTON -- The Michigan Public Service Commission held its regular meeting Thursday at the MUB Ballroom at Michigan Technological University. The commission approved rate increases for two major gas suppliers in the State of Michigan, including SEMCO Energy.
SEMCO will increase its rates by $33 million, starting Jan. 1, 2027, according to Gas Safety Engineer Timothy Dombrowski. "SEMCO Gas will continue its infrastructure reliability improvement program from 2027 to 2031," he said. "This program is intended to mitigate risk of customer outages where there's only a single point of spumy by adding redundancies to their systems."
Dombrowski cited projects included in this program, including the nearby Keweenaw Connector Pipeline. The rate increases will impact customers with a residential monthly charge of $15. This, Dombrowski said, will reflect in a 15-year weather normalization period in waste reduction target savings of 1.25%.
The overall explanation for rate increases for SEMCO was explained by Commission Chair Dan Scripps, where he said a combination of ensuring consumer safety, energy reliability and increased energy regulations.
"We had both businesses and residential customers involved in the case and they ultimately came to a settlement in terms of the amount of the increase and some of the other elements," he said after the meeting. "I think it's really important, particularly with gas systems, to continue to focus on the reliability and safety of those systems."
Some electric utility items the commission approved including power supply cost recovery programs for both UPPCO and the Upper Michigan Energy Resources Corporation in Negaunee.
Scripps added the Upper Peninsula has unique energy needs which require attention from the commission. Some of those needs were brought up during public comment. "I've spent a lot of time in the U.P. on U.P. energy issues," he said. "The U.P. has some particular energy challenges. We heard a lot about those at today's meeting."
Notable public comment came from economic development and energy officials, U.P. municipal managers and one former MSPC employee. Many expressed their support of energy projects pertinent to the Upper Peninsula.
CEO of InvestUP Marty Fittante said he supported the Enbridge Line 5 pipeline project. Its permit was vacated by the State Supreme Court, citing ecological concerns.
"Enbridge, alongside Line 5, is one of our largest energy consumers in the Upper Peninsula and it's also one of the largest taxpayers in many of our counties," he said. "So that's not just about an issue for those that consume propane. It's a regional issue with regional implications."
Ironwood City Manager Paul Anderson and Bessemer City Manager Mandy Lake also expressed their support of the Line 5 project.
Upper Peninsula Construction Council Executive Director Mike Smith said the commission should carry out its duty and help approve Line 5. "The court ruling does not change that basic energy reality," he said.
Another issue brought up in public comment was the state legislation decommissioning the Rice Generators in Marquette in accordance with a state clean energy goal. Former MPSC official Bonnie Janssen said the generators were only built seven years ago, so decommissioning them would burden the taxpayers which rely on natural gas, rather than the green energy the state wants. "I don't know why you would want to burn the rate-payers in the U.P.," she said.
The two city managers also expressed their misgivings with UPPCO and SEMCO's recent purchase of Xcel Energy's U.P. operations, which services the most western parts of the Upper Peninsula.
According to Anderson, Ironwood pays the lowest energy rates in the U.P. Anderson said the rates would increase after a few years and when municipal leaders met with UPPCO officials, no promises were made on rates staying low. "This type of cost would be a major blow," he said.
Lake agreed and said Cel's costs per month are around $161 and UPPCO's are $283 for a household. "We can't just put a surprise on our residents," she said.
The next Michigan Public Service Commission meeting will be held 1 p.m. on Nov. 5 in Lansing. More information about the commission can be found at michigan.gov/mpsc.