The Michigan Public Service Commission (MPSC) today approved a settlement agreement reconciling Presque Isle Electric & Gas Coop's 2008 power supply costs and increasing its rates by $638,252.

The settlement agreement found a net over-recovery of $750,979, which the utility has already returned to customers in its 2009 power supply cost recovery (PSCR) plan.

Recognizing economic conditions and to ease the burden on its customers, the utility requested a rate increase of $638,605, an amount lower than it originally calculated using its times interest earned ratio (TIER) ratemaking mechanism.  An increase of $638,252 was approved.

As a result, the average residential customer will see a monthly increase of 88 cents on their bill.

The utility and the MPSC staff participated in the settlement agreement.

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

Case No. U-15412-R