What are the possible impacts to ratepayers should a new utility be created? The Michigan Public Service Commission wants to know.

Subsidiaries of the Milwaukee-based WEC Energy Group in June proposed the creation of the Upper Michigan Energy Resources Corporation (UMERC). WEC also owns the Presque Isle Power Plant, whose days are limited.

UMERC should run as a Michigan-only utility and serve about 40,000 electric and natural gas customers. It also would build and own about 170 megawatts of new electric-capacity under a proposal announced earlier this year by WEC Energy and Cliffs Natural Resources.

The two facilities, which carry an estimated price tag of about $255 million, would replace the Presque Isle plant and provide power for Cliffs’ Tilden Mine by 2020.

In the past, WEC Energy had said creating UMERC would allow it to better split its operational costs among ratepayers in Michigan and Wisconsin instead of customers in one state subsidizing operations in the other.

The MPSC, though, wants more information on whether a proposed settlement filed in mid-October meets required statutory elements.

It also wants to know whether it would adversely affect customer rates – making them rise, we assume – and provide adequate energy in Michigan.

We agree with MPSC Chairwoman Sally Talberg, who pointed out that making sure Upper Peninsula customers have access to safe, reliable and affordable energy is essential. That means ensuring the settlement allows for that.

Stakeholders in the issue have until Nov. 23 to file briefs addressing concerns.

The Presque Isle Power Plant has been an important part of the local community, as has Tilden Mine. So, we look with interest as to how this all plays out and how ratepayers would be impacted.

Mining Journal (Marquette)