Cloverland Electric Cooperative announced that the Michigan Public Service Commission has approved a rate settlement reached between the cooperative, public service commission staff and the City of Mackinac Island, an intervenor in the rate case. The approved $2 million or approximately 2.4 percent increase is about half of the amount requested by the cooperative in its August 2013 rate filing.
In May 2010, the cooperative purchased neighboring Edison Sault Electric from Milwaukee-based Wisconsin Energy Corporation. In its order, the MPSC started the process of restructuring the cooperative’s rates.
“Cloverland’s current rate structure does not recover its fixed costs or provide the revenues necessary to reinvest in the electrical system as required,” said Dan Dasho, Cloverland’s president and chief executive officer. “With this settlement, the cooperative begins the transition to fair, cost-based rates. While we are disappointed that the state commission did not grant our entire request, the process of transitioning to a single set of cost based rates over the next 10 years has begun.”
Rate changes will go into effect with January billing cycles. Additional information, including updated rate schedules, will be posted on the Cloverland website at cloverland.com.