MPSC approves two settlement agreements authorizing 2017 power supply cost recovery factors for Indiana Michigan Power Company and Upper Michigan Energy Resources Corporation

LANSING, Mich. – The Michigan Public Service Commission (MPSC) today approved two settlement agreements authorizing the 2017 power supply cost recovery (PSCR) factors for Indiana Michigan Power Company (I & M) and Upper Michigan Energy Resources Corporation (UMERC).

The PSCR covers the cost of fuel for generating electricity at the utility’s plants or purchasing electricity by outside sources. Utilities do not receive a profit or a loss on their fuel purchases. The reconciliation process at the MPSC ensures that customers pay the actual fuel costs, not too much or too little. PSCR factors are adjusted to reflect those costs.

Under the terms of the settlement in Case No. U-18144, I & M is authorized to implement a 2017 PSCR factor of up to 10.50 mills per kilowatt-hour (kWh).

Under the terms of the settlement in Case No. U-18149, UMERC is authorized to implement a 2017 ceiling PSCR factor of $0.00243 per kWh in its monthly billing to its retail electric customers in its Wisconsin Electric Power Company rate zone, effective with the next business month, and a 2017 ceiling PSCR factor of $0.00055 per kWh in its monthly billings to its retail electric customers in its Wisconsin Public Service Corporation rate zone, effective with the next business month.

Case Nos. U-18144 and U-18149

For more information about the MPSC, please visit www.michigan.gov/mpsc.

 

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