In what's being hailed as a victory for Michigan residents, Attorney General Dana Nessel has played a pivotal role in significantly reducing a proposed electric rate hike from Upper Michigan Energy Resources (UMERC). According to a recent announcement from the Michigan Department of Attorney General, the Michigan Public Service Commission approved a settlement that slashes the original $11.2 million increase in electric rates by more than half for residential customers. The intervention from the Attorney General's office helped lower the impact on these customers from an 18.7% rate hike to just 9.9%.
UMERC's initial rate increase request, filed in May, not only asked for a significant boost in consumer costs but also proposed a 10.25% return on equity, which would have positioned them among the highest in the United States. This aspect of the proposal, too, was part of the intervention led by Nessel, along with the Citizens Utility Board of Michigan. They managed to negotiate the rate of return down to 9.86%, which aligns more with national standards. Furthermore, the Attorney General's intervention resulted in additional programs to maintain affordable monthly energy bills for residents, including a residential income allowance program and a senior bill assistance program.
"By reducing UMERC's electric rate hike request by 50% and establishing programs to keep monthly energy bills more affordable, we've secured a settlement that delivers vital support to ratepayers," Nessel said, per the department's press release. "My office will continue to advocate for utility customers and put their needs ahead of corporate shareholders." These measures are aligned with Nessel’s dedication to protecting the interests of Michigan utility customers, especially in the wake of escalating energy costs that have been of significant concern nationwide.