Governor Rick Snyder has announced a preliminary agreement that would lower electricity rates in Michigan's Upper Peninsula.
Rates have jumped in the Upper Peninsula to subsidize an aging coal-fired power plant in Presque Isle, which lost its largest paying customer – a mining company.
Under the deal, Cliffs Natural Resources would go back to getting its power from the Presque Isle Power Plant, among other agreements involving several groups.
“Ultimately this framework will benefit all the consumers in the U.P.," Pat Persico says. She's a spokeswoman for Cliffs Natural Resources. "You know everyone from the citizens, the communities and the businesses [will benefit]. So we feel really good about where this is going directionally.”
Electricity rates were expected to go up as much as 30 percent for many customers in the Upper Peninsula this year.
In the agreement, the Presque Isle Power Plant would also be sold by a Wisconsin-based energy company to a company in Michigan. Governor Snyder says the deal should be finalized this spring.