ESCANABA, Mich. (WZMQ) – In 2026, Escanaba residents will see an increase in their electric payments. The City says the change is due to a State requirement, and officials are working on a plan to ease the burden on customers.
As of January 1, Escanaba Electric Utility customers will see an Energy Waste Reduction surcharge on their bills.
“For a residential customer, it’s approximately a 3% increase,” said Electric Utility Director Gerald Pirkola. “It’s not a lot when you talk cents—it’s 0.35 cents per kilowatt hour.”
According to Pirkola, the increase is a result of Michigan’s current clean energy laws.
“They set certain metrics that need to be met,” he explained. “It’s 1.5% savings on energy, and then there’s reporting requirements.”
Despite the increase, he says Escanaba’s energy rates are still among the lowest in the Upper Peninsula.
“I would challenge anyone to look at all the utilities around us and compare rates, even with this energy waste reduction surcharge,” said Pirkola.
To help meet State requirements, the City is partnering with the Michigan Public Power Agency and Franklin Energy to create a new program.
“The program is basically the Energy [Optimization] Rebate Program, similar to what we have been running, except it’s going to be run by a third party now, Franklin Energy,” Pirkola said. “They have 15 – 20 years of experience running programs like this.”
The program is still in development, but like the existing rebate program, it will offer savings for electric utility customers who purchase certain appliances.
“LED lighting upgrades, Energy Star appliances,” said Pirkola. “For commercial business, it could be variable speed drives or other energy-efficient upgrades that they can do.”
Even though the program has not started yet, purchases made anytime after the first of the year will qualify. The City has signed a four-year contract with Franklin Energy, which Pirkola believes is a positive step toward making State-mandated changes, as well as making those changes work for customers.
“Several other municipalities would be joining in, so there’s economy of scale,” he said. “Just getting a good relationship for those four years, I think it’ll help Escanaba and Franklin run a good program.”
The new plan will be finalized in the coming months.
