Holland Reporter

State lawmakers from Michigan's Upper Peninsula are expressing concern over a recent administrative law judge's recommendation that would increase energy costs for residents and businesses in the region. The decision, if approved by the Michigan Public Service Commission (MPSC), would result in customers of Upper Michigan’s Energy Resource Corporation (UMERC) paying over $10 million more starting in January 2026, with nearly $13 million in additional costs expected by 2027. UMERC serves approximately 37,400 customers across the Upper Peninsula.

The rate increase will affect all customer categories, including large industrial users such as Cleveland-Cliffs Tilden Mine, which employs around 900 people in Marquette County and is considered a significant contributor to the local economy.

Senator Ed McBroom, R-Waucedah Township, commented on the situation: “We know that something must be done to ensure people can afford to live and work in the U.P. Doing nothing is untenable,” said McBroom. “The ALJ ruling has only affirmed what the U.P. team has been saying since the new energy laws were passed last term. Doing nothing will mean higher costs for the people of the Upper Peninsula, the small businesses that serve our communities, and our large industries like mining and forest products which employ thousands across the region with good-paying jobs. Again, doing nothing is simply untenable."

The current case before MPSC is linked to Michigan’s clean energy law requiring utilities to generate all their electricity from clean sources by 2040. This law could force recently installed natural gas generators known as RICE units—brought online in 2019—to retire early. Despite being retired ahead of schedule, their costs would still need to be covered while new renewable power infrastructure estimated at more than $4 billion would also need funding.

“No one can deny the effect Michigan’s clean energy law is going to have on our Upper Peninsula without immediate legislative intervention,” said Rep. Greg Markkanen, R-Hancock. “We call on leadership in the state Senate to immediately consider our bipartisan plan to protect the U.P. from devastating, unsustainable increases to electric bills resulting from the region’s unique energy landscape.”

Pending legislation sponsored by Representatives Karl Bohnak and Dave Prestin aims to address these concerns by allowing RICE generators to operate through their planned lifecycle until 2049. The proposed House Bills 4007 and 4283 passed with bipartisan support in May but await action in the state Senate.

“As things stand now, there is nothing standing between the U.P. and devastating energy poverty,” said Rep. Dave Prestin, R-Cedar River. “If the Senate does not pass our RICE generator protection plan, businesses will close, people will move, and the U.P. as we know it will become completely upended. This plan isn’t just about energy; it’s about protecting every aspect of U.P. life from certain collapse.”

“Protecting our RICE generators was my chief legislative priority when I decided to seek state office,” said Rep. Karl Bohnak, R-Deerton. “I have not wavered from that goal. I ensured our RICE generator protection plan was one of the first bills introduced this year, and I secured significant bipartisan support for the plan every time it’s been considered for a vote. There is no question this is the most important fight the U.P. delegation faces right now, and we have no choice but to keep fighting until our bipartisan plan is signed into law by the governor.”

RICE generators were constructed after older coal plants closed in 2019 through a partnership between Michigan officials, WE Energies, and Cliffs Mining Company. They have helped stabilize electricity supply while reducing carbon dioxide emissions from regional power generation by more than 70%. Their operation prevented an ongoing crisis that had previously cost ratepayers an extra $6 million each month.

Lawmakers argue that other regions have received policy exceptions under similar circumstances and are urging passage of their bills before year's end.

“This threat to our energy and economic future cannot be overstated,” McBroom said. “Action must be taken soon.”