News Photo by Kayla Wikaryasz On Friday, Ken Dragiewicz is seen sitting in a conference room at Alpena Power Company in Alpena. The utility company is preparing to present their maximum rate charges for 2026 to the Michigan Public Service Commission.

ALPENA — Ken Dragiewicz, Alpena Power Company’s president and COO, said that for 2026 the utility company is requesting to increase their maximum charge per kilowatt hour (kWh) from the Michigan Public Service Commission.

According to Dragiewicz, the Michigan Public Service Commission has to approve maximum rates per kilowatt hour (kWh) that Alpena Power can charge within a year. Alpena Power is preparing to present the commission with their Power Supply Cost Recovery (PSCR) plan that outlines the projected amount of power they plan to purchase and how much they will charge per kWh.

Dragiewicz said that in 2025, the commission authorized 8.2 mils per kWh (.82 cents per kWh). For 2026, Alpena Power is requesting a maximum rate of 13.5 mils per kWh (1.35 cents per kWh).

Dragiewicz explained that the authorization by the Michigan Public Service Commission is part of Public Act 304 of 1982 which ensures that their plan for the year is “prudent and reasonable.” The commission will review the costs, the math, and verify that “everything we did was correct” according to Dragiewicz.

Dragiewicz stated that Alpena Power is required to have their PSCR plan reviewed by the commission annually. He explained while crafting their PSCR plans, their main objective is to ensure that costs for customers remain as consistent as possible.

According to Dragiewicz, Alpena Power doesn’t generate power themselves, but rather buys energy from contracts and through a market system that he refers to as “a bucket.” Companies that generate power in the country place the power in the “bucket” from which companies like Alpena Power can purchase from.

To mitigate fluctuations in a market that is “getting tighter,” due to increases in energy use across the country, Dragiewicz said that Alpena Power has established “long-term contracts” with energy providers. Some of which last till 2040, ensuring that rates stay as consistent as possible.

“Energy consumption nationwide has been increasing after years of being stagnant and is expected to go higher,” Dragiewicz said. “We have long-term contracts in place to protect us from that. And that’s how we hedge that risk.”

Dragiewicz added that Alpena Power does navigate a “little bit of a market risk” because they buy a “forecasted amount of energy,” which the commission approves through the PSCR plan.

“When supply gets short, it’s basic economics,” Dragiewicz said. “Supply gets short, price goes up.”

According to Dragiewicz, the PSCR plan is meant to “even out that volatility in the market.”

For example, Dragiewicz explained that there was an increase in energy consumption among consumers this summer, so Alpena Power had to buy more energy from the markets.

“Our usage was higher. So we had to buy a little bit from the market, and then you’re exposed to market price,” Dragiewicz said.

Dragiewicz explained that the company’s PSCR is available for the public to view. The public is also allowed to view a pre-hearing for Alpena Power’s PSCR at 9:30 a.m. on Nov. 19. The pre-hearing will be virtual.

Kayla Wikaryasz can be reached at 989-358-5688 or kwikaryasz@TheAlpenaNews.com.