LANSING – Today, the Michigan Public Service Commission (MPSC) approved settlements in rate increase requests from the Michigan Gas Utilities Corporation (MGUC) and Upper Peninsula Power Company (UPPCO), announced Michigan Attorney General Dana Nessel. Both settlements secure significant reductions in the requested rate hikes due in-part to the Attorney General's intervention. 

In March, MGUC filed a request for a $17.5 million increase in natural gas rates, which would have raised residential customers’ rates by 12%. The company also sought a 10.25% return on equity, which would have been one of the highest in the state.  Similarly, UPPCO filed a request for a $16.9 million increase in its electric rates in March that would have increased residential customers’ rates by 13.6%.  UPPCO also sought a 10.7% return on equity, which would have been among the highest in the country.  

Attorney General Nessel, continuing her fight to protect customers from unreasonable rate increases, intervened in these cases along with several other ongoing rate increase applications before the MPSC from utility companies, including Consumers Energy, DTE, the Upper Michigan Energy Resources Corporation, Northern States Power, the Alpena Power Company, and the Indiana Michigan Power Company.  

In MGUC’s case, the Attorney General worked with other intervenors to reduce the $17.5 million requested increase to $7 million – a 60% reduction – and reduce a 12% increase in residential natural gas rates to 0.7%, a 94% reduction. The settlement also reduced the return on equity from the requested 10.25% to 9.86%. 

In UPPCOs’ case, Attorney General Nessel and other intervenors worked to reduce the $16.9 million requested increase to $9 million, a nearly 50% reduction overall.  In addition, she was able to reduce a proposed 13.6% increase in residential electric rates to 5.7%, a 58% reduction, and reduce the return on equity from the requested 10.7% to 9.86%. The settlement also requires UPPCO to donate $200,000 to low-income customers to assist customers struggling to pay their electric bills. 

“This has been a busy year, with multiple utilities seeking rate increases at the same time, but my office has been vigilant in aggressively reviewing and litigating these cases to protect customers around the state,” Nessel said. “Our efforts have reduced proposed double-digit residential rate hikes by 94% for MGUC customers, and 58% for UPPCO customers. We will continue to advocate for reliable service and reasonable rates for Michigan residents.” 

MGUC has approximately 185,000 natural gas customers in the southwestern portion of Michigan’s low peninsula. UPPCO has approximately 53,000 customers located in 10 of the Upper Peninsula’s 15 counties.