2026 Rate Review
May 23, 2026 | News
Upper Peninsula Power Company has filed a request with the Michigan Public Service Commission to review and update certain electric rates and service conditions. The filing is intended to address revenue shortfalls and support the continued safe, reliable, and efficient operation of the electric system.
UPPCO Service Territory Overview
UPPCO is the Upper Peninsula’s largest electric utility serving approximately 52,000 customers across 4,460 square miles in 10 counties. The company operates seven hydroelectric generation facilities, 58 substations and maintains 4,468 miles of power lines. With an average of 12 customers per square mile, UPPCO’s service territory spans some of the most remote and rugged terrain in the state. Despite its expansive territory and harsh winters, which create a challenging environment for operating and maintaining electrical infrastructure, UPPCO and its predecessors have served local communities with safe, reliable electric service for over 135 years.
Why is UPPCO Requesting a Rate Review?
UPPCO’s proposed rate review is intended to address an under-recovery of revenue needed to safely and reliably operate the electric system across the Upper Peninsula.
Like utilities across the country, UPPCO has experienced rising operating costs in nearly every area of the business. These include increases in purchased power, fuel for company vehicles, tree trimming and vegetation management, contractor services, metering, and routine system maintenance.
At the same time, UPPCO continues to invest in critical infrastructure improvements that support the safe, efficient, and reliable delivery of electricity. These investments include upgrades to poles, wires, substations, electric equipment, and grid technology, as well as new infrastructure needed to support economic development and load growth throughout the region.
The company is also facing significant increases in the cost of equipment, construction materials, supplies, and labor associated with capital projects and long-term system improvements.
Projects Supporting System Reliability and Safety:
The recent request supports several major infrastructure and grid reliability investments across UPPCO’s service territory:
- Two new substations are planned to strengthen overall system reliability and support long-term electric demand. In addition, UPPCO will complete a critical infrastructure project to replace existing underwater electric distribution crossings beneath the Portage Canal between Houghton and Hancock. These two crossings are the only electric ties across the canal and are essential to maintaining reliable, redundant service for nearly 25% of UPPCO’s customer base.
To improve reliability in one of the Upper Peninsula’s most remote regions, UPPCO also plans to rebuild a portion of a key feeder serving Keweenaw County into underground infrastructure, helping reduce outages caused by weather and difficult terrain.- The filing also includes significant investments in UPPCO’s hydroelectric system and dam safety infrastructure. Planned projects include refurbishment of the intake at Prickett Dam in Baraga County and concrete work at Silver Lake, along with Hoist and McClure Dams in Marquette County.
To improve reliability in one of the Upper Peninsula’s most remote regions, UPPCO also plans to rebuild a portion of a key feeder serving Keweenaw County into underground infrastructure, helping reduce outages caused by weather and difficult terrain.
What is happening in the industry?
Utilities nationwide are facing increasing costs tied to energy production, operations, construction, and infrastructure investment. As a result, energy prices have risen across the country as companies work to maintain and modernize the electric grid while continuing to provide reliable service.
UPPCO’s proposed rate review reflects these broader industry trends and the rising costs of operating and improving the electric system in some of the most remote and rugged areas of the Upper Peninsula.
While UPPCO is making meaningful headway to increase locally sourced generation and comply with Michigan’s 2023 energy legislation, it is important to note that UPPCO’s rate review does not include or reflect this impact.
When will the new rates go into effect?
The rate adjustment is subject to regulatory approval by the MPSC, which has 10 months to review UPPCO’s proposal and issue a decision. Any adjustments to customers’ rates resulting from the MPSC’s decision will go into effect after the Commission’s Order has been issued.
What if I cannot afford to pay my energy bill?
UPPCO’s Energy Assistance, Self-sufficiency & Education (EASE) Program is intended to assist eligible customers by establishing a two-year affordable payment plan. To learn more about EASE and other assistance information, visit our assistance page.
The State of Michigan offers a variety of resources to assist eligible households that apply through the Department of Health & Human Services (DHHS) MIBridges website.
Where can I get more information?
- Information regarding the regulatory proceeding can be found on our regulatory page.
- Additional information can be found on the Michigan Public Service Commission’s website.
- The case has been assigned Docket Number U-22032 by the Michigan Public Service Commission.
UPPCO is the Upper Peninsula’s largest electric utility serving approximately 52,000 customers across 4,460 square miles. UPPCO and its predecessors have excelled at providing dependable service and safe, reliable energy to its valued customers for more than 135 years.
