State Approves UPPCO Sale

The Michigan Public Service Commission has approved the proposed sale of the Upper Peninsula Power Company. Intgrys Energy Group is spinning off UPPCO to Balfour Beatty Infrastructure Partners for around 300-million dollars. The state did make its approval contingent on Balfour Beatty meeting a number conditions, including:
– The sale will not have an adverse effect on rates;
– The sale will not create an adverse effect on service;
– UPPCO rates will not be used to subsidize other Balfour Beatty activities;
– Corporate offices must be maintained in Michigan;
– A 26-million dollar credit will be paid to customers over a six-year period once the sale closes;
– No rate increases will be requested until at least January 1st, 2016;
– Balfour Beatty will honor all of UPPCO’s existing settlement agreements.
Balfour Beatty has said they hope to close the deal by the end of this year.