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Thursday, December 26, 2024

UPPCO raises rates amid controversy over Michigan's green energy laws

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State Senator Edward W. McBroom | Michigan House Republicans

State Senator Edward W. McBroom | Michigan House Republicans

State Senator Ed McBroom, along with State Representatives Dave Prestin and Greg Markkanen, expressed concerns following the Upper Peninsula Power Company's (UPPCO) decision to increase energy rates. This move is a response to Michigan's new green energy laws, which were passed last year along strict party lines.

The legislation, introduced by Representative Jenn Hill, mandates green energy production and zero carbon emissions in Michigan. It also permits solar siting plans that can override local zoning. These laws, the first of their kind to pass along partisan lines, narrowly cleared the Legislature by one vote. They have allowed UPPCO, known for having the highest rates in Michigan, to implement significant rate hikes affecting residents of the Upper Peninsula.

"The energy rewrite pushed through the Legislature is out of touch with the U.P. economy and people," stated McBroom. He noted that five out of six members of the U.P.'s legislative delegation opposed the bill due to predictions of a 10-11% statewide rate increase and an additional 12% rise specifically in the U.P.

The Michigan Public Service Commission recently approved UPPCO's request for a $9 million rate hike. Under this new law, UPPCO must transition to less reliable and weather-dependent power sources while maintaining utility services for U.P. customers.

At recent town hall meetings, UPPCO officials explained that these green energy laws compelled them to consider rate increases amid ongoing supply chain issues and inflationary pressures. They warned customers to expect a 5.6% monthly bill increase as these changes take effect.

Prestin criticized legislators who supported what he described as an "anti-petroleum agenda," arguing it jeopardizes jobs in the U.P. "Make no mistake," he said, "any legislator who supported this law owns this rate increase just as much as UPPCO and the Public Service Commission does."

In contrast, Rep. Hill celebrated her vote on these laws shortly after their passage, asserting they would lower energy costs for U.P. residents—a claim now contested by opponents citing unprecedented cost increases for ratepayers.

Markkanen added his voice against these policies: "Residents across the U.P. are already suffering from runaway inflation; now they have to find a way to afford the energy rate increases too." He called for legislative action prioritizing job security and affordability for residents.

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