LANSING, Mich. – Upper Peninsula residents and businesses will be further spared high electricity price hikes to keep the Plant in Marquette running as a result of another agreement reached between We Energies and Cliffs Natural Resources, Gov. Rick Snyder said on Wednesday, February 18th, 2015.
This builds upon previous cooperative work and agreements of these parties and others last month to find short- and long-term solutions to the UP’s energy challenges.”
“We Energies and Cliffs are to be commended for reaching this agreement that will end system support resource payments for the Upper Peninsula as of Feb. 1, and they both have my thanks and that of the entire Upper Peninsula,” Snyder said.
Snyder said it is nice to celebrate the agreement on the day Cliffs CEO Lourenco C. Goncalves is in the state.
Snyder said he appreciates the cooperation of all involved, including the Midcontinent Independent System Operator (MISO), which is moving expeditiously to process the rate reduction. He also praised the Michigan Public Service Commission and the Attorney General’s office for their work in fighting these charges at the state and federal level.
These charges were initially imposed by MISO to support the running of the Presque Isle Power Plant. The Michigan Public Service Commission recently questioned the need for the SSR payments to continue in light of the agreement between Cliffs and WEC to have the mines return as customers.
Today’s agreement between We Energies and Cliffs Natural Resources cements that relationship until a larger deal can be reached, ending the need for U.P. customers to make SSR payments. The disputes over previous SSR payments imposed on Michigan and Wisconsin consumers are still pending with FERC and are on the commission’s docket for discussion this week.