The Michigan Public Service Commission (MPSC) today approved a settlement agreement to increase its electric rates by $650,000, effective Jan. 1, 2010.

The average residential electric customer will see an increase of $3.15 on their monthly bill.

The settlement agreement found that the rates are cost-based and include an authorized rate of return on common equity of 10.80 percent and an overall rate of return of 7.54 percent.  The revised rates also reflect a new power supply cost recovery base of 62.07 mills per kilowatt-hour.

The utility and the MPSC participated in the settlement proceeding.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

Case No. U-15935