The Story:
In less than two weeks, people across the Upper Peninsula could see their electric bills skyrocket.
It's a quirk in a bill that was changed years ago -- allowing mines to shop different companies for power. That's what they decided to do in 2013 -- leaving the Presque Isle Power Plant in Marquette wanting to close. But the power company couldn't because they provide to users across Wisconsin and the Upper Peninsula.
As a result -- the whole Upper Peninsula might have to pick up the costs of the plant staying open.
Alyssa Gambla found out more about this power struggle in the U.P. and breaks down the details.
"What's happened is that the Presque Isle Power Plant was proposed for retirement by Wisconsin Electric. The reason they want to retire the plant is they were serving the iron ore mines. Wisconsin Electric said if were not serving them, we can close," explained Dan Dasho, CEO of Cloverland Electric Co-Op. "But the people who run the grid -- a group called MISO -- said you can't close that grid because if you do the grid won't work, so it needs to stay on. Wisconsin Electric said if you pay us $52 million a year, we would have saved from retirement, we would keep it open."
To keep this plant open in Marquette, the Upper Peninsula could have to dish out millions of dollars. The plant needs to stay open for the electric grid in Michigan and Wisconsin. But for people in Michigan's Upper Peninsula -- they won't actually be benefiting."
"You have to maintain a reliable electric system and if the Presque Isle Plant is retired, the lights could go out in the U.P, and the people that run this system cannot have that. So they're saying the plant has to run and be paid for and FERC has said the U.P. has to pay for it all -- we think that's not fair and short-sided."
This decision by Federal Energy Regulatory Commission, or FERC, will go into effect December 1st.
Cloverland Electric has been working hard to spread the news to their customers. People in the U.P. will see their electricity bills skyrocket if it goes through. An average homeowner will see about a $30 increase on their monthly bill and businesses -- hundreds to thousands.
"We don't wanna see this happen to the U.P. like this at all it has implications. We don't wanna see anyone hurt in the central eastern or any part. We need help here on this one," said Dasho.
"It's a crisis really in the U.P. and were on it," said Representative Dan Benishek. "We're talking to stakeholders trying to come up with a decision that works for all stakeholders."
"For some of us, I don't wanna pay it. I can afford it, but so many can't. Take a look -- at $34 dollars every thousand kilowatt hours, that's gonna be very hard on people," explained Linda Hoath, Executive Director of Soo Area Convention and Visitors Bureau.
And for places like Soo Schools, they worry this could mean lights out to important school programs.
"For our district we're looking at $80,000 increase in electricity from one year to the next. We think that's very unfair," Superintendent Tim Hall said. "Anytime you spend $80,000 you weren't planning on, that comes out of the classroom. It could hit the kids by technology purchases from the general fund. Science, materials or math manipulatives. We're concerned that programs like sports, art, music will be looked at."
And higher costs of living could make the cost of everything go up. The Visitors Bureau worries people would no longer visit places like Sault Ste Marie.
"You can come up here not spend a lot of money and have a good time, but that will be different if this goes into effect, I can't imagine," Hoath said. "It's gonna be very costly for people they won't be able to afford it. I already know some of my small hotels are closing for the winter they can't afford it they are just keeping their heads above the water."
Hall said,"the possibility of families leaving the area in troublesome financial times is always there. Certainly throwing this extra 100 million added bills on top of what we pay already will not help families, kids and not schools."
So now, people in the U.P. -- Michigan lawmakers in Washington and Cloverland are trying to push FERC to reconsider their decision -- or at least delay these extra electric costs.
"Our office [has] written to FERC to hold on for long term solution, because there's no long term solution to not enough power in the U.P. That doesn't make much sense to the people in the U.P. Nor does it make any sense to me," Benishek said.
And earlier this week, Michigan Congressmen Benishek and Peters, along with Senator Stabenow introduced legislation the would require extra oversight by FERC in the Upper Peninsula. They call it the Power Act, and it would work to prevent unfair rate increases.
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