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ALPENA – Alpena Power Co., Michigan’s second-smallest investor-owned utility, announced today that the Michigan Public Service Commission (MPSC) has approved a settlement agreement with state regulators regarding customer outage credits that resulted from the catastrophic damages caused by the winter 2025 Northern Michigan ice storm.

Participants in the settlement include Alpena Power Co., the Department of Attorney General, and MPSC staff.

The approved settlement provides for the following:

– Alpena Power will pay the currently calculated total of $643,737 in outage credits to its customers within 90-days of the MPSC’s formal settlement approval.

– Of that amount, all parties to the settlement agree that $332,806 of the total $643,737 in calculated outage credits are the result of ice storm-related damage to regional transmission lines that are not owned or controlled by Alpena Power.

– When those transmission lines were damaged, Alpena Power had no power to deliver to its customers because it does not generate its own power.

– The settlement also states that MPSC staff and the Department of Attorney General shall not contest Alpena Power in future MPSC proceedings if it pursues recovery of the $332,806 in customer credits (plus interest) that resulted from transmission line outages outside of Alpena Power’s control.

“The unprecedented 2025 ice storm caused expensive damages to the grid that were out of our control,” said Ken Dragiewicz, Alpena Power’s President and COO.”We appreciate the willingness of the attorney general’s office and MPSC staff to come to a settlement that helps our customers while recognizing our unique financial circumstances as a small utility.”

BACKGROUND

Alpena Power initially requested an “act of God” waiver from the Michigan Public Service Commission (MPSC) for customer outage credits on April 17, 2025, after the unprecedented ice storm caused its customers to experience 94,000,000 outage minutes.

While MPSC rules require customer credits to be issued if service is not restored after 96 hours of sustained interruption, Alpena Power applied for the exception due to storm damage circumstances beyond its control and the outsized costs that resulted from repair efforts.

Alpena Power, the second-smallest investor-owned utility in the State of Michigan,

MPSC held a hearing on the matter on May 29 during which the Michigan Department of Attorney General was allowed to intervene, become a party to the settlement negotiations and, eventually, the settlement. A settlement conference took place on July 16 and negotiation discussions between Alpena Power, MPSC staff and the Attorney General’s office continued afterward, resulting in the settlement.