MARQUETTE — The Michigan Public Service Commission approved a settlement reached in an Upper Peninsula Power Company Integrated Resource Plan case.

“An IRP is a comprehensive plan developed by an electric utility that outlines its future resource strategy — how the electric utility will provide reliable, cost effective electric service to its customers while addressing the risks and uncertainties inherent in the utility industry,” according to the MPSC website.

The approved settlement, according to a Thursday UPPCO release, “sets the stage for more clean, reliable and affordable energy to be delivered to all of its customers.”

“We’re encouraged by the fact the parties in the case were able to reach a settlement, including the Commission Staff, the Department of the Attorney General and Citizens Against Rate Excess,” said UPPCO’s Chief Executive Officer Jim Larsen in the release. “The approved plan reflects our commitment to add significantly more renewable energy to our generation portfolio. Under the approved plan, our portfolio will be expanded to include more than 50% renewable energy by 2025.”

According to a Thursday MPSC press release, the IRP settlement includes the removal of proposed plans to construct a natural gas reciprocating engine to replace a combustion turbine at the company’s Portage facilities that failed “catastrophically” in November 2018 pending further study and analysis; increase the company’s energy waste reduction target to 1.65% for 2020 and 1.75% for 2021 up from the 1.5% proposed by UPPCO; proceed with a long-term, 125-megawatt power purchase agreement on a proposed solar facility; and move ahead on a proposal to allow the Hoist and McClure hydroelectric generating facilities to operate directly in the wholesale power market, increasing the reported capacity of the two units by a combined 7.6 megawatts.

It’s estimated that every $1 spent on energy waste reduction saves around $4 in avoided energy costs. Energy waste reduction helps lower costs through reductions in energy use, the MPSC press release states.

The MPSC received input from a public hearing held in May in Escanaba, comments in its case docket and testimony from expert witnesses in the formal hearing process prior to rendering its approval of the plan.

“Our IRP establishes the company’s long-term plan for meeting the future energy needs of our customers,” said Brett French, Vice President of Business Development and Communications. “Renewable energy has become a viable, cost-competitive resource, as evidenced by UPPCO’s competitive bidding process. Under the settlement that was approved by the Michigan Public Service Commission, our customers will benefit from considerable cost savings in the future and increased reliability. The approved plan capitalizes on technological advancements, reductions in construction costs, and appreciable cost savings produced by new generation facilities. These attributes square nicely with the feedback we received from our customers – they want clean renewable, renewable energy and price stability.”

UPPCO serves approximately 52,000 customers in nearly 4,500 heavily forested square miles in Upper Michigan according to the company website.

Lisa Bowers can be reached at 906-228-2500, ext. 242. Her email address is lbowers@miningjournal.net.