MPSC - MPSC Authorizes Alpena Power Company to Increase Electric Rates by $1.3 Million Annually, 28 Percent Below the Utility's Request

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MPSC Authorizes Alpena Power Company to Increase Electric Rates by $1.3 Million Annually, 28 Percent Below the Utility's Request

Contact: Judy Palnau (517) 241-3323

June 12, 2007

The Michigan Public Service Commission (MPSC) today authorized Alpena Power Company to increase its electric rates by $1,261,000 annually, 28 percent below the utility's request.

This is the Company's first electric base rate increase in 15 years. This rate increase was needed to provide for recovery of increased operation and maintenance expenses, employee pension and healthcare costs, and new plant additions.

In addition, a surcharge of $0.00019 per kilowatt-hour to provide for recovery of choice implementation costs will be imposed for 12 billing months.

The monthly bill of the average residential electric customer will increase $4.03, as a result of this order.

The Commission approved the company's five-year cycle tree trimming management plan and requires Alpena Power to submit annual reports on its tree trimming activities.

The utility filed an application with the MPSC on April 2, seeking approval of an annual revenue increase of $1,745,792.

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

Case No. U-15250


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