If approved as proposed, a typical residential customer in the Upper Peninsula Power Company's (Uppco) integrated system using 500kWh of electricity would see an increase of about $11.55 a month.

Residential customers in the Iron River service area using 500kWh per month would see an increase of about $12.66. In the absence of a commission decision, interim rates (subject to refund) will go into effect from January 1, 2010. Uppco expects the Michigan Public Service Commission (MPSC) to make a final decision by June 2010.

Keith Moyle, Uppco's vice president and general manager, said: "We understand that our customers are already stressed by the poor economy, so we have done what we can to control costs internally. Despite our efforts, and three years after our last rate increase, our current rates no longer reflect today's costs to provide retail electric service."

The major drivers in Uppco's 12.7% request are hydroelectric facility upgrades, cost of capital, low sales growth, increased meter reading costs, increased costs for injuries and damages and general inflation.

A service of YellowBrix, Inc.