Local governments in Gogebic and Ontonagon counties are seeking protections against future electric rate changes as Xcel Energy pursues the sale of its Michigan operations.
Ironwood and Bessemer officials described the joint effort at their Oct. 26 meetings, the Daily Globe reported.
Upper Peninsula Power Company announced Oct. 6 that it intends to acquire Xcel’s electric operations serving approximately 9,000 customers in the two counties. SEMCO Energy Gas Company intends to acquire the natural gas operations, according to UPPCO’s acquisition information.
The transaction requires state and federal regulatory approvals. UPPCO anticipates closing in 2027.
What UPPCO says about rates
UPPCO says Xcel customers would retain their current rate structures when the transaction closes. It also says it does not intend to combine those structures with its existing customers’ rates for the foreseeable future.
That statement describes the company’s plans; it is not a guarantee that individual bills or rates will never change.
Until the transaction closes, Xcel customers will continue receiving service from Xcel, according to UPPCO.
Separate rate request
UPPCO says the acquisition is not included in the rate review it filed with the Michigan Public Service Commission on May 23.
In that separate proceeding, the company requested a $17.3 million increase. Attorney General Dana Nessel filed testimony seeking to reduce the request by 42%, according to her office’s Sept. 25 announcement.
UPPCO says its existing customers’ rate structures would not change as a result of the acquisition itself.
