A series of agreements is in place to eliminate the huge electric rate increases across the U.P. coming from the Presque Isle Power Plant in Marquette.

Under the series of agreements, We Energies and Integrys would sell their electric utility businesses to UPPCO. The sale would include the Presque Isle Power Plant. UPPCO says it would continue with existing rates.

However, once the sale of the plant closes, UPPCO will eliminate the additional payments that U.P. customers would otherwise have to make to cover the plant’s operating costs. That’s expected to happen no later than July.

Cliffs would then buy a majority of its power from UPPCO until the Presque Isle Power Plant is retired from service. That’s expected to happen in 2020 because of new federal air emission requirements.

There are many other components of the deal, but Governor Rick Snyder says he’s very optimistic about the ability of the parties involved to get the required approvals from federal and state decision–makers.