Powering More Communities Across the U.P.
Upper Peninsula Power Company (UPPCO) announced, on October 6, 2026, its intent to purchase Xcel Energy’s Upper Peninsula electric utility operations in Gogebic and Ontonagon Counties. If approved by federal and state regulators, Xcel Energy’s electric customers will be served in the future by Upper Peninsula Power Company (UPPCO). Natural gas customers will be served by SEMCO Energy Gas Company.
As a neighboring electric utility with a long and successful track record of serving electric customers in the Upper Peninsula, UPPCO will remain focused on ensuring a smooth transition for employees, customers and communities.
Expanding Our Commitment to the Upper Peninsula
This transaction would provide an opportunity to extend UPPCO’s commitment to delivering safe, reliable electric service to more customers across the region.
By bringing utility operations and resources together, UPPCO expects to create efficiencies that can strengthen service, infrastructure and long-term reliability for both existing and new customers. A larger service territory would also provide greater access to employees, equipment and other resources, particularly when severe weather or other events require a coordinated response.
UPPCO’s service centers already work together to support customers and respond to storm events. Expanding our footprint would build on that existing collaboration and allow resources to be deployed more effectively where they are needed.
Timeline
- Announcement of Proposed Transaction
UPPCO, Xcel Energy, and SEMCO publicly announced the proposed transaction on October 6, 2026. - Pre-Close and Regulatory Filings
UPPCO, Xcel Energy, and SEMCO will make the necessary federal and state regulatory filings seeking approval of the transaction. UPPCO expects regulatory reviews of the acquisition to close in 2027. - Regulatory Approval and Financial Close of Transaction
Upon receipt of all regulatory approvals, UPPCO will become the new owner and operator of the electric assets. - Post-Close Transition
Under the terms and conditions of a Transition Services Agreement, both parties will work closely together to transition all aspects of Excel Energy’s Michigan electric operations to UPPCO. - Full Integration
When the Transition Services Agreement is fully executed, the assets and operations will be considered fully integrated.
What this means for current Xcel Energy customers in Michigan
- As a result of this transaction, UPPCO anticipates no adverse impact on rates, and no adverse impact on the delivery of safe, reliable, and adequate electric service. During the next several months, while the regulatory approval process continues, a plan will be established to smoothly transition all aspects of ownership and operations from Xcel Energy to UPPCO.
- Between the date of public announcement and transaction closure, nothing changes. Xcel Energy customers in Michigan will continue to be served by Xcel Energy.
- When the transaction closes, which is anticipated in 2027 pending regulatory approval, Xcel Energy’s Michigan operations will become part of UPPCO. Customers will maintain their current rate structures.
- UPPCO will communicate to customers ahead of any changes to ensure a smooth transition.
What this means for current UPPCO customers
Current UPPCO customers will not see changes to their rate structure as a result of this proposed transaction. Additionally, current customers can be assured that this proposed acquisition is not included in the recent rate review that was filed with the Michigan Public Service Commission on May 23, 2026.
FAQs
UPPCO announced its intent to acquire Xcel Energy’s Michigan electric utility operations serving 9,000 customers in Gogebic and Ontonagon Counties. The transaction includes 470 miles of distribution lines, 110 miles of transmission lines, and the existing service center located in Ironwood, Michigan. SEMCO Energy intends to acquire Xcel Energy’s natural gas operations in the same region.
By bringing utility operations and resources together, UPPCO expects to create efficiencies that can strengthen service, infrastructure and long-term reliability for both existing and new customers.
- A larger service territory would also provide greater access to employees, equipment and other resources, particularly when severe weather or other events require a coordinated response.
Xcel Energy is proposing to divest its electric utility operations located in Michigan. As a neighboring electric utility with a long and successful track record of serving electric customers in the Upper Peninsula, UPPCO will remain focused on ensuring a smooth transition for employees, customers and communities.
UPPCO intends to purchase the electric transmission and distribution operations from Xcel Energy. Positions directly supporting these operations will be brought into the UPPCO business when the transaction is complete, and will be offered employment with UPPCO at that time.
No. This proposed acquisition is not included in the recent rate review that was filed with the Michigan Public Service Commission on May 22, 2026.
No. UPPCO anticipates no disruptions to the safe delivery of electric service during this transaction. Field operations will continue out of the existing Ironwood Service Center.
UPPCO will continue its long history of delivering safe reliable electric service in the Upper Peninsula and will rely on the expertise of local Xcel Energy electric employees to continue operations out of the Ironwood Service Center during and after the transaction.
- Current UPPCO customers will not see changes to their rate structure because of this transaction.
- Current UPPCO customers and new customers coming from Xcel Energy will follow separate rate structures.
- As a result of this transaction, UPPCO anticipates no adverse impact on rates, and no adverse impact on the delivery of safe electric service.
- Both organizations will maintain their current rate structures, independent from one another.
- Reliable and adequate electric service will continue.
- During the next several months, while the regulatory approval process is being implemented, a plan will be established to smoothly transition all aspects of ownership and operations from Xcel Energy to UPPCO.
- Between the date of public announcement, October 6, 2026, and transaction closure, nothing changes. Xcel Energy customers in Michigan will continue to be serviced by Xcel Energy customer service and operations staff.
- UPPCO will communicate ahead of any changes to billing or account access.
- When the transaction closes, the Xcel Energy Michigan operations will become a part of UPPCO.