The cost per kilowatt hour (kWh) that UPPCO uses to bill customers for service is approved by the Michigan Public Service Commission (MPSC). The MPSC approves rates for all regulated utility providers in Michigan.
The MPSC approves UPPCO’s rates based on a number of factors. UPPCO feels that every U.P. service area customer should be aware of the factors that effect your power costs. For instance, did you know that the cost to distribute electricity to you is actually a much higher percentage of the overall cost than the electricity itself?
Learn more by reviewing the statistics below that compare the UPPCO service area to State of Michigan averages.
What is Distribution?
- Distribution costs cover getting the power from where it’s created to your home.
- Distribution costs involve bringing power from where it is generated to substations, service centers, poles, and lines that go to each customer.
Power Distribution Comparison
Power distrubtion to urban homes costs less per home than distribution to rural homes.
Power Distribution to Urban Homes Costs Less Per Home
- Less distance for power to travel to more homes
- Less average distribution cost per home
- Larger homes with more square feet per home
- More air conditioning use
Power Distribution to Rural Homes Costs More Per Home:
- More distance for power to travel to fewer homes
- Higher average distribution cost per home
- Smaller homes with less square feet per home
- Less air conditioning use
What Do Your Dollars Pay For?
Did You Know?
The cost to distribute energy throughout UPPCO’s service area to your home is more than double the cost of the electricity itself.
69% Distribution Cost
Distribution costs cover getting the power from where it’s created to your home.
Costs of delivering power to your meter via:
- Hydroelectric facility management
- Substations
- Service centers
- Poles and wires
- Meters/electrical devices
- Personnel
- Vehicles and equipment
31% Electricity Cost
Electricity costs cover generating or purchasing the raw electricity.
Produce:
- UPPCO’s cost to produce hydroelectric and send it to substations
Purchase:
- UPPCO’s cost to purchase electricity on the open market to meet demand
Is Your Home Working Against You?
Many UPPCO homes are poorly insulated and have older, inefficient doors and windows, and older heating/cooling systems and appliances that use too much electricity.
