Gogebic County residents and local officials are seeking protections for electricity customers as Xcel Energy prepares to sell its Michigan utility operations.
Residents raised concerns at a county board meeting in Bessemer on Tuesday, Nov. 10, WLUC reported. Ironwood City Manager Paul Anderson said officials want written commitments governing how customers’ rates would be handled.
Xcel announced Oct. 6 that it plans to sell its electric operations to Upper Peninsula Power Company and its natural gas operations to SEMCO Energy Gas Company. The proposed sale covers about 9,000 electric customers and 6,000 gas customers in Gogebic and Ontonagon counties, according to the utilities’ joint announcement.
The companies expect the transaction to close in 2027, subject to state and federal regulatory approval. Xcel will continue serving its customers until the transaction closes.
Communities seek protections
Anderson said Nov. 10 that the companies expected to submit regulatory paperwork within two weeks, according to WLUC. No UPPCO representatives attended the meeting, the station reported.
Under Michigan law, the Michigan Public Service Commission must approve or reject an acquisition application within 180 days after filing. The law directs commissioners to consider potential effects on customer rates and reliable service.
Ironwood, Bessemer, Gogebic County and several townships were organizing a joint response in October, the Daily Globe reported. Bessemer City Manager Mandy Lake said participating municipalities planned to share legal costs. Anderson’s written report identified maintaining separate rate structures for incoming Xcel customers and existing UPPCO customers as a goal.
What UPPCO says about rates
UPPCO says incoming customers would retain their current rate structures when the transaction closes. The company anticipates no adverse effect on rates from the acquisition and says the transaction is separate from its rate review filed in May.
Those statements do not establish a permanent rate freeze.
The acquisition includes the Ironwood service center and approximately 580 miles of electric lines. UPPCO says employees directly supporting the acquired electric operations would receive job offers when the transaction closes.
Separate SEMCO increase
The MPSC separately approved a $33 million rate increase for SEMCO natural gas customers.
A typical residential customer using 10 dekatherms per month would pay about $2.80 more monthly beginning Jan. 1, 2027, plus an initial 19-cent monthly infrastructure surcharge, according to the commission’s announcement.
That announcement does not establish the rates that would apply to customers transferring from Xcel.
