November 7, 2002

The Michigan Public Service Commission today approved a settlement agreement and granted Cloverland Electric Cooperative authority to increase its rates for its electric customers by $295,000 annually, or 2.23%.  Cloverland had requested an annual rate increase of $558,970. The Commission approved the rate increase because Cloverland's current electric rates would result in a revenue insufficiency for the company, based on 2000 test year data.  Cloverland's last rate increase was approved by the Commission on September 22, 1981.

Cloverland's rates changes will vary, by rate class, as follows:

    Rate class                           % Increase (Decrease)

    Residential Service                                  2.83
    Seasonal Residential Service                  19.89
    General Service                                      (7.56)
    Seasonal General Service                        3.43
    Commercial Heating & Air Conditioning     3.16
    Large Power Service                                (6.30)
    Primary Substation Distribution Service     (2.54)
    Large Power – Mining Operations             (5.89)
    Outdoor Protective Lighting                     12.50

                     Total                                     2.23

Cloverland's residential customers using 500 kilowatt-hours (kWh) of electricity per month will see an increase in their monthly electric bills of about $2.60.  Individual customer increases will vary, based on actual customer electric use.

MPSC staff and Cloverland negotiated the settlement agreement.

Cloverland is headquartered in Dafter and provides electric service to about 17,300 Michigan customers.

The MPSC is an agency within the Department of Consumer and Industry Services.


Case No. U-13345

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