U.P. Energy Future

The package puts us on a track to reduce emissions in line with Paris Agreement, signed in 2016. This makes Michigan a leader in this advancing renewable and responsible energy generation.

The problem is that in the U.P., we were a little ahead of the game. Coal-fired power plants (Shiras plant in Marquette, for example) were taken out of service and removed entirely. In their place, newer and more responsible technology was pursued, and natural gas fueled turbines (RICE generators) were installed. This newer and more responsible technology is now in service in the following locations:

• Marquette Board of Light and Power, Marquette
• F. D. Kuester Generating Station, Negaunee Township
• A. J. Mihm Generating Station, Baraga Township

However, the 2023 energy legislation could force early retirement of the RICE generators and will require construction of new and unnecessary generation at hundreds of millions of dollars, resulting in duplicative energy payments for U.P. residents, customers, and businesses. See estimated increases below.

 

Marquette Board of Light And Power– serving the City of Marquette
Estimates a minimum of 50% bill increase for residential customers by 2040.

 

Upper Michigan Energy Resources (UMERC)– serving portions of Baraga County
Estimates a 40-60% bill increase for residential customers by 2030 and 85% increase by 2040.

 

Bottom line- this will result in unnecessarily higher costs for residents, energy customers, and businesses.

Passage of House Bills 4007 and 4283 would recognize the progress the U.P. has already made toward responsible energy and the practical realities we face from climate, energy, and rising costs. These bills have already passed the MI House of Representatives and are currently at a standstill in the Senate.

Legislators need to hear from the U.P.!

Protecting the U.P.’s Energy Future

For many residents of Michigan’s Upper Peninsula, energy policy can seem like a distant issue debated in Lansing boardrooms and legislative chambers. The Upper Peninsula has long faced unique challenges when it comes to energy. Our geography, climate, and economy differ significantly from those of lower Michigan, and energy policy must reflect those realities. The decisions being made today will directly affect the monthly electric bills paid by families, the operating costs faced by local businesses, and the future of thousands of jobs across our region.

At the center of this issue are the Reciprocating Internal Combustion Engine (RICE) generators installed in the Upper Peninsula in 2019. These state-of-the-art natural gas facilities replaced the aging Presque Isle and Shiras coal plants and have become indispensable to maintaining a reliable and resilient electric grid across our region. When they were constructed, they were designed and expected to provide dependable service until approximately 2050, reflecting a long-term commitment to the Upper Peninsula’s energy future.

The RICE generators represented a substantial investment in cleaner, more efficient energy infrastructure and marked a major milestone in the region’s transition away from coal-fired generation. Their deployment positioned the Upper Peninsula as a leading example of how communities can modernize their energy systems while preserving grid reliability. The results have been significant: according to available data, these facilities have reduced carbon dioxide emissions in the Upper Peninsula by more than 70 percent compared to the coal plants they replaced, delivering substantial environmental benefits while continuing to provide the reliable power that homes, businesses, and critical services depend on every day.

However, changes to Michigan’s energy laws in 2023 neglected to address these investments and under current law, the Upper Peninsula will be penalized for leading the way in these advancements.

The stakes are significant. Without passage of HB 4007 and HB 4283, the RICE generators could face premature retirement before their expected lifespan ends and U.P. residents and businesses could face the burden of paying for the RICE generators and additional, unnecessary generation simultaneously that could cost hundreds of millions of dollars.

According to UMERC, the estimated impact on Baraga County customers could be approximately 40-60% bill increase for residential customers by 2030, 85% increase by 2040 and 50-100% rate increases between 2030 and 2040 for business customers. Similarly, the Marquette Board of Light & Power estimates impacts of approximately 50% rate increases by 2040.

Families are already struggling with rising costs. Energy prices have increased substantially in recent years, placing additional strain on household budgets. For many residents, especially seniors and working families, another major increase in electric bills would be difficult to absorb.

The impact will extend beyond residential customers. Schools, colleges, hospitals, and small businesses could all face dramatically higher operating costs. Major employers that support thousands of jobs throughout the region will see energy expenses rise to levels that threaten future investment and long-term viability.

Few examples illustrate this concern more clearly than the mining industry. Mining remains one of the economic pillars of the Upper Peninsula, supporting hundreds of unionized, skilled trades jobs and generating economic activity throughout our communities. Large industrial facilities consume significant amounts of electricity, and substantial increases in energy costs could jeopardize both competitiveness and employment.

Supporters of House Bills 4007 and 4283 argue that these measures provide a reasonable path forward. Rather than abandoning clean energy goals, the legislation would allow the Upper Peninsula additional time to complete its transition while continuing to utilize infrastructure that is already reducing emissions and supporting grid reliability.

Critics may argue that any delay slows progress toward statewide climate objectives. That concern deserves consideration. Michigan should continue investing in renewable energy technologies and cleaner sources of power. But good public policy must also account for regional realities. What works in densely populated areas of southern Michigan may not be practical or affordable in a geographically large, sparsely populated region that experiences some of the harshest weather conditions in the state.

The choice should not be framed as clean energy versus reliable energy. Importantly, the proposal does not abandon environmental progress. The Upper Peninsula has already demonstrated its commitment to reducing emissions by replacing coal generation years ahead of every other region. Instead, the legislation attempts to balance environmental goals with the equally important responsibilities of maintaining affordability, reliability, and economic stability.

The Upper Peninsula should not be penalized for moving away from coal earlier than expected and investing in modern generation that has already delivered substantial environmental benefits. Our region deserves an energy strategy that recognizes both the progress we have made and the practical realities we face.

The Upper Peninsula needs and deserves energy that is reliable, affordable, and responsible. Any path forward should ensure that we can achieve all three. As lawmakers and state officials consider the future of Michigan’s energy system, they should remember that energy policy is not merely about megawatts and mandates. It is about families trying to pay their bills, businesses trying to remain competitive, schools trying to educate students, and communities trying to preserve good-paying jobs.

HB 4007 and HB 4283 have already passed the Michigan House of Representatives but are currently at a standstill in the Senate. We urge residents, businesses, and community leaders across the Upper Peninsula to contact their state senators, particularly Senate Majority Leader Winnie Brinks, Senate Majority Floor Leader Sam Singh, and Senate Majority Whip Mallory McMorrow, and ask them to support these important bills while ensuring they continue to include protections for both the UMERC RICE generators and the Marquette Board of Light & Power.

These facilities are critical to maintaining reliable and affordable energy for U.P. families, businesses, schools, hospitals, and major employers. The Upper Peninsula’s energy future depends on preserving the infrastructure that keeps our communities powered and our economy competitive.

Click here for the Marquette County Ambassadors press release from June 17, 2026.

Click here for the UMERC service territory map.

Click here to read the letter of support provided by Marty Fittante, CEO of InvestUP and Christopher Germain, former CEO of Lake Superior Community Partnership in February 0f 2026.