The Michigan Public Service Commission (MPSC) today approved a settlement agreement authorizing Upper Peninsula Power Company to implement its 2009 power supply cost recovery (PSCR) factor.  The settlement also approves the recovery of costs for replacement power associated with the Silver Lake Dam incident and off-sets those costs with part of the sale of the Warden Generating Station.

The approved settlement authorizes the utility to implement a PSCR factor of up to 15 mills per kilowatt-hour (kWh).  However, the settlement requires the utility to implement a lower PSCR factor of 11 mills per kWh until it experiences a cumulative under-recovery ending balance of $500,000 for one month.

The settlement offsets $1,933,582 due the company for replacement power associated with the Silver Lake Dam incident experienced in 2003, 2004 and 2005 with the customers' share of the proceeds from the sale of the Warden Generating Station. 

The utility, Calumet Electronics Corporation, Michigan Technological University, Smurfit-Stone Container Corporation, and the MPSC staff participated in the settlement proceedings.  White Pine Electric Power filed a statement on non-objection.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

Case Nos. U-15661 and U-15537