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AG Nessel Fights for a 42% Reduction of UPPCO’s $17.3 Million Rate Hike Request
September 25, 2026
LANSING – Michigan Attorney General Dana Nessel has filed testimony urging the Michigan Public Service Commission (MPSC) to slash Upper Peninsula Power Company’s (UPPCO) $17.3 million electric rate hike request by 42%.
UPPCO is seeking a $17.3 million rate hike, amounting to a 15.6% average rate increase for residential customers. The company is also seeking to increase its profit margin on capital investments from 9.86% to 10.55%, which would make it the highest return on equity in the state and likely one of the highest in the nation. Attorney General Nessel filed expert witness testimony, jointly with the Citizens Utility Board of Michigan, arguing that UPPCO should only receive a rate increase of $9.9 million, at most. In addition, the Attorney General argued that UPPCO should only receive a 9.47% return on equity, that the Commission should reject the Company’s storm restoration expense tracker as just another way to increase rates between rate cases, and that the Commission should reduce the proposed residential fixed monthly charge from $15.00 to $10.87.
“Electric rates for UPPCO’s residential customers are already significantly higher than the national average, and it’s essential that the MPSC consider this when examining the reasonableness of further rate hikes,” said Attorney General Nessel. “The MPSC should also reject mechanisms, like the one UPPCO proposes in this case for storm costs, because they only allow the utility to raise rates even higher outside of the usual, public rate review process.”
Since taking office, the Attorney General has helped save Michigan consumers over 4.6 billion by intervening in utility cases before the MPSC. This testimony filed at the Commission earlier this week with the Citizens Utility Board of Michigan reaffirms her commitment to affordable energy for consumers and can be found at the MPSC website.
UPPCO sells electricity to approximately 53,000 customers in the Upper Peninsula.
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