May 20, 2008   

The Michigan Public Service Commission (MPSC) today approved a settlement agreement authorizing Upper Peninsula Power Company (UPPCo) to implement its 2008 power supply cost recovery (PSCR) factor of up to 10.34 mills per kilowatt-hour (kWh).  That amount reflects the company's 2007 PSCR over-recovery of $1,290,135.  

The utility will implement a lower factor of 5.5 mills per kWh instead of the maximum factor of 10.34 mills unless it records a cumulative under-recovered balance of $500,000 for two consecutive months.

The company filed an application with the MPSC on Sept. 28, 2007 seeking to implement its 2008 PSCR plan and factors.  Participating in the settlement were UPPCo, the MPSC staff, Calumet Electronics Corporation, Michigan Technological University, and Smurfit-Stone Container Corporation.

Case No. U-15401