Press Release re the proposed utility increase: Banner.jpg For Immediate Release Contact: Rachel McCleery 202-224-1437 october 17, 2014 Kathleen Long 202-228-3685 Stabenow, Levin Call for a Delay of Increase in Electric Bills for Upper Peninsula Families, Small Businesses Federal Agency Should Focus on Long-Term Solutions to Upper Peninsula’s Issues December 2014 Electric Rate Increases Will Significantly Harm Local Economy, Unfairly Burden UP Families WASHINGTON, D.C. – U.S. Senators Debbie Stabenow and Carl Levin today urged the Federal Energy Regulatory Commission (FERC) to delay electric rate increases for families and businesses in the Upper Peninsula and act on the complaint filed by the Michigan Public Service Commission about these unjust and unreasonable rate hikes. The Upper Peninsula would have to pay nearly $100 million annually to operate the Presque Isle Power Plant, if the proposed electric rate increases are approved by FERC. This increase is scheduled to take place after December 1 and is the result of a regulatory decision made by the North American Electric Reliability Corporation (NERC) to force consumers in the Upper Peninsula to pay for 99 percent of the Presque Isle Power Plant’s operating costs. This decision by NERC upended an earlier federal finding that UP customers should be responsible for just 14 percent of the power plant’s operating costs. FERC shares oversight responsibilities and has a mandate to consider utility cost allocation issues. The Senators called for a moratorium on this decision while the agency considers the Michigan Public Service Commission’s complaint that these rate increases are not just and reasonable. The letter also encourages the agency to work with local stakeholders on a long-term solution to the UP’s power issues. “It is totally unacceptable that seniors, small businesses, and families across the UP are forced to pay for unjust and unreasonable rate increases, while the benefits of this plant are being shared with communities in other states,” said Stabenow. “Many families in the UP already struggle with high utility expenses and shouldn’t have to decide between keeping the lights on and putting food on the table.” “Federal law requires that rate increases be reasonable and justifiable, and this proposed increase is neither,” Levin said. “FERC should act promptly on Michigan’s request to protect Upper Peninsula consumers and businesses from the damage this unjustified rate hike would cause.” The letter reads in part: “Residents and businesses in the region already pay extremely high energy costs because of the region’s significant power transmission and supply challenges. When coupled with the Upper Peninsula’s high unemployment, growing number of retirees, and an average median household income of only $39,400 – more than $13,000 lower than the national median – we are deeply concerned about the negative impact that these dramatic rate increases will have on seniors, the unemployed, small businesses, and others. Reports indicate that small businesses could be forced to shoulder annual increases of several hundred thousand dollars, which would create an unreasonable drag on the region’s economy.”
Posted on: Sat, 18 Oct 2014 13:38:05 +0000
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