MPSC Approves Special Contract between Cloverland Electric Cooperative and MPI Acquisition, LLC in Manistique

Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission

March 15, 2013 - The Michigan Public Service Commission (MPSC) today approved a special contract between Cloverland Electric Cooperative (Cloverland) and MPI Acquisition, LLC (MPI). MPI's operations include a 72-acre manufacturing site in Manistique, which currently produces high-value uncoated printing and writing paper exclusively from 100 percent recycled fiber.

Nearly 50 years ago, Edison Sault Electric Company (Edison Sault) entered into a special contract for the provision of electric service to Manistique Papers, Inc. The contract was supplemented and/or revised on 10 separate occasions. Cloverland acquired Wisconsin Energy Corporation's equity interests in Edison Sault in 2010.

Manistique Papers emerged from Chapter 11 bankruptcy and was subsequently purchased by MPI, saving 150 local jobs.

Through the efforts of the Governor's office, the Michigan Economic Development Corporation and a number of legislators and local officials, a reorganization resulted in the purchase of Manistique Papers' operations by MPI, thus saving the lost jobs.

Cloverland and MPI spent over six months negotiating the special contract.

In approving the special contract, the MPSC noted that approval of the special contract will not result in an increase in rates for any customer.

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

Case No. U-17179

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