UPPCO declares increase in electricity rates and transition to renewable energy at open house in Ishpeming

ISPHEMING, Mich. (WLUC) – Upper Peninsula Power Company (UPPCO) is working to comply with Michigan’s Green Energy Laws.

UPPCO held an open house in Ishpeming to explain how it will meet the requirements of Michigan’s new energy laws.

Dan Freeborn, manager of communications and external affairs for UPPCO, says UP customers who use 500 kilowatt hours of electricity each month can expect a 5.6% increase in their monthly bill starting Jan. 1. Freeborn explains why rates are rising.

“Well, the need to continue to invest in our distribution infrastructure and then of course, like any other business around inflation, put some pressure on our business and also supply chain constraints were part of that,” Freeborn said.

According to Freeborn, Michigan’s energy laws are divided into three categories.

The goal of the Renewable Energy Standards is to set a nationwide renewable energy standard of 50% by 2030 and 60% by 2035.

The Clean Energy Standard sets a nationwide clean energy standard of 80% by 2035 and 100% by 2040.

According to Freeborn, some of the energy UPPCO already produces is renewable.

“We currently have seven hydroelectric plants that generate 20 percent of our electricity,” Freeborn said. “So this is something we are familiar with. The new energy laws that came into force in 2023 provide us with a unique opportunity to expand this.”

Freeborn said UPPCO is also working on an integrated resource plan to comply with the state’s green energy laws.

“It is a comprehensive utility plan that lays out basic needs, what we must do to meet those needs and how we can deliver reliable, cost-effective energy to our customers,” Freeborn said. “It’s a 5-year plan that we put out, and it’s common for utilities to submit an application every 5 years.”

Freeborn said UPPCO has two planned solar projects.

One project is in Republic and another is the Groveland Mine Solar Project in Dickinson County. These are scheduled to begin operations in 2027 and 2028 respectively.

Another UPPCO open house will be held at the Finnish American Heritage Center in Hancock on Wednesday at 6 p.m.

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