MPSC Appoves 2007 Power Supply Costs for Upper Peninsula Power Company

Contact: Judy Palnau (517) 241-3323

April 3, 2007

The Michigan Public Service Commission (MPSC) today approved a settlement agreement that implements its 2007 power supply cost recovery (PSCR) factor. PSCR costs reflect rising wholesale prices in the electric market, due primarily to the increased prices of fuels used to generate electricity.

In Case No. U-15006, the MPSC approved a settlement agreement authorizing Upper Peninsula Power Company (UPPCo) to implement a PSCR factor of up to $0.004 per kilowatt-hour (kWh). The change will increase the average Integrated System residential customer's bill by $2, and the average Iron River residential customer's bill by $3.94, assuming usage of 500 kWh per month. UPPCo, the MPSC staff, and Calumet Electronics Corporation submitted a settlement agreement resolving all the issues in the case. Michigan Technological University and Smurfit-Stone Container Corporation submitted statements of non-objection to the settlement agreement.

The MPSC is an agency within the Department of Labor & Economic Growth.

Case Nos. U-15006