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UPPCO filing provokes call for investigation

MARQUETTE — The Upper Peninsula Power Company has submitted a request to the Michigan Public Service Commission for an indefinite or two-year extension of waivers granted in connection with monthly meter reading requirements.

In response, some UPPCO customers are calling on the MPSC to grant the waiver for just six months and, during that time, conduct a formal investigation into UPPCO’s billing practices.

UPPCO, based in Marquette, serves customers in 10 Upper Peninsula counties.

The filing was submitted Sept. 21 and UPPCO’s current waiver expires the end of this month.

In September 2015, the MPSC extended until Nov. 1 UPPCO’s waivers on rules that require the utility to provide its customers with actual monthly meter reads.

UPPCO is seeking an extension of the temporary waivers indefinitely, or at least until November 2019.

According to UPPCO’s filing, the utility currently reads a majority of its residential and non-residential customers’ meters on a bi-monthly basis and estimates bills for those months when meters are not actually read.

Germfask resident Gary Talarico, who considers himself a consumer energy advocate, said he wants an investigation into UPPCO’s billing practices because he doesn’t trust the company’s estimates.

“People will get a $1,000 bill and then they’ll get a credit or they’ll get a $200 bill and then a $700 bill,” Talarico said. “There’s no rhyme or reason.”

Talarico claims the fluctuating and unreasonably high rates are hurting everybody, including realtors and local economies.

“We had a meeting last year and we had people testify that they had to choose between taking medicine or paying their electric, or buying food or electric,” Talarico said. “We just want it fair and reasonable. We here in these three townships have the highest rates, more than New York, Hawaii, (Los Angeles), anywhere, if you can believe that. It’s just so — I mean — it’s hard to even grasp.”

UPPCO states it does not have an automatic meter reading system, and is seeking the extension based on the fact UPPCO’s meter-reading methods have not changed and will not change in the immediate future.

“Given our current system and considering the size of our service territory, we believe it would add approximately $914,000 to the amount we must bill our customers annually if our meter technicians read all meters every month,” Brett French, UPPCO’s vice president of business development and communications, said in a prepared statement.

French said obtaining the waiver extension will help the utility reduce costs for customers, and indicated the waiver request is a “routine filing” UPPCO is required to make.

“Our method for reading meters has not changed and our customers only pay for the energy they actually use since the bills are ‘trued-up’ every other month using actual readings,” he added.

UPPCO states in the filing that failure to grant the waiver will accelerate the timeline for the utility’s next general rate case.

The company is asking the commission to exceed its previous waiver limitation of one year to save time and resources, since the utility’s circumstances are not likely to change, according to the filing.

However, French said “UPPCO is currently developing a plan to install Smart Meter technology that will increase system reliability, provide significantly improved customer service and eliminate the need to rely on the estimated meter reading values.”

MPSC spokesman Nick Assendelft said he doesn’t know when the three-member commission will rule on this issue, but its next meeting is on Oct. 25.

“It being an open case, I can’t comment obviously directly on the case itself, but certainly as they work toward a decision, they’ll certainly take into account all of the comments and all of the filings in the case,” Assendelft said.

As of Wednesday, there were about 20 public comments on the case, all alleging unreasonable costs with most calling for an investigation. Commenters list themselves as being from Laurium in the north-central U.P. to Iron River in the south and various rural municipalities in between.

Talarico said anyone who has concerns relating to this case can comment on the hearing by emailing mpsc_commissioners@michigan.gov, with “Please file in Case U-18455” in the subject line; or by sending mail to Michigan Public Service Commission, PO Box 30221, Lansing, MI 48909.

Talarico is holding a public energy town hall meeting with energy experts and advocates from Lansing to discuss this and other U.P.-wide energy issues, including the upcoming MPSC ruling on whether to approve two new natural gas-fired power plants in Negaunee Township and Baraga Township. Talarico is concerned the cost of the plants will lead to higher rates for residential customers, and wants the approval postponed until other options are assessed.

The Germfask energy town hall meeting is scheduled for 6 p.m., Oct. 25 at the Germfask Township Hall at 8093 Pine St. in Germfask.

View this case online at www.michigan.gov/mpsc, by clicking “E-Dockets” on the left tab and entering docket number 18455.

Mary Wardell can be reached at 906-228-2500, ext. 248. Her email address is mwardell@miningjournal.net.

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