Mackinac Island Awaits Determination in Edison Sault Case
By Karen Gould

Mackinac Island awaits a determination in its case challenging this year's 16 percent rate hike by Edison Sault Electric Company that affected all county residents who get their power from the Sault Ste. Marie company. The hearing to consider the facts in the case, which was postponed from May, took place Tuesday, June 27, and a ruling by the Michigan Public Service Commission may be several months away, say Island officials.

Edison Sault is owned by Wisconsin Energy Corporation (WEC) of Milwaukee.

While the Mackinac Island City Council says the rate increase was not necessary and that Edison Sault customers are victims of its parent company's efforts to boost profits, Edison Sault President Donald Sawruk stands by the increase.

Edison Sault serves approximately 23,000 customers in the Eastern Upper Peninsula who will pay approximately $100 more per household for 1,000 kilowatt-hours as a result of this year's increase. For Mackinac Island, electricity is the primary source for home heating. In questioning the rate hike, attorney fees to the city could reach $20,000.

Attorney Tom Waters of the Lansing law firm of Fraser,

Trebilcock, Davis, and Dunlap, has been monitoring Edison Sault rate increases for the Island for the last six years and has spearheaded this legal challenge against the electric company.

On behalf of the Mackinac Island City Council, local attorney Tom Evashevski asked the City of St. Ignace, Mackinac County Board of Commissioners, and several other municipalities to join in as interested parties at no cost. Only the Clark Township board agreed to be listed in the case.

Mackinac Island's case focuses on two issues, including an early termination of an

agreement between the parent company and Edison Sault and an agreement the company had with other power companies. The agreement allowed Edison Sault to purchase electricity at cost from its parent. The second agreement was to provide Edison Sault the ability to purchase power at a reduced cost from other power companies.

Mr. Sawruk told The Town Crier in May that the outcome of the hearing would "vindicate" Edison Sault.

According to the Michigan Public Service Commission's utility rate books and in comparison to other power providers in Michigan as of June 1, Edison Sault charges $7.19 per 1,000 kilowatt hour, which is the third lowest rate in Michigan. Lowest is American Electric Power Company of St. Joseph, at $6.26, and second lowest is American Electric Power Company of Three Rivers, at $6.76. The highest rate is $13.07 per 1,000 kilowatt hours charged by Upper Peninsula Power, which serves approximately 50,000 homes, primarily in the northwestern reaches of the peninsula, although it includes the Escanaba area.

The Michigan Public Service Commission is an agency within the Department of Labor and Economic Growth.