Michigan’s largest power co-op raises rates to pay for ice storm that wrecked grid

BOYNE CITY, MI — Facing massive cleanup costs from the spring ice storm that decimated northern Michigan’s power grid and amid uncertainty around government disaster aid, the state’s largest power cooperative is raising rates.

Great Lakes Energy’s board approved an increase on Sept. 17 forecasted to push bills up about $17.18 a month for the average residential member.

The increased electricity costs come as some northern Michigan residents worry they will ultimately end up footing the bill for hundreds of millions in restoration costs from the historic March storm, which sent trees crashing into power lines, snapped utility poles and left many without electricity for weeks.

In the aftermath, utility line workers compared the damage to that of a Category 5 hurricane, except it lasted for days instead of quickly sweeping through the area.

Read more: The ice storm walloped northern Michigan’s power grid. Residents are paying for it

Great Lakes Energy is the second cooperative to raise rates in response, following a similar move by Presque Isle Electric and Gas Co-op. Each was forced to turn to emergency loans to cover storm costs.

Now, Great Lakes Energy faces an estimated $155 million bill from the blitz of ice, nearly 40 times its normal level of yearly storm costs. The utility suffered damage to more than 4,300 miles of power lines and replaced more than 3,100 poles.

The rate increase, taking effect in November for its 130,000 member customers in 26 counties, will help offset those storm-related expenses along with other rising costs for energy supply, infrastructure investment and operations, according to its Chief Operating Officer Shari Culver.

For residential and seasonal members, the energy use rate will increase by $0.01040 per kilowatt-hour, and the fixed monthly charge will rise by $6.88, per Culver.

“As a member-owned, not-for-profit cooperative, GLE must rely on member rates to cover expenses,” she said in a statement. “Although a federal disaster declaration has been issued, uncertainty remains around the availability of relief funding and which storm-related expenses may qualify.”

While issuing the declaration in July, unlocking federal aid, President Donald Trump denied a category of assistance flowing to utilities, limiting what they can receive.

Michigan Gov. Gretchen Whitmer has appealed the decision, but so far the White House hasn’t acted on the request, according to state officials. Nearly 13,000 rural power co-op members signed a petition sent to the president urging him to release more aid funds, according to Culver.

But Trump administration officials have pledged to shift more disaster costs onto states and wind down the Federal Emergency Management Agency, or FEMA, which coordinates aid.

Great Lakes Energy is warning that it may be months or years before it receives any assistance, even under approved categories where its emergency expenses may qualify. When federal aid kicks in, it only covers 75% of eligible expenses.

The co-op may eventually receive some state assistance. A bill providing $100 million for storm relief passed the state House and is now awaiting action before the Senate. But it would put co-ops last in line, helping individuals, businesses and local governments first.

Any portion of the $155 million not covered by government aid will need to be passed onto members through “significant and sustained rate increases” beginning in 2025 and continuing for years, Great Lakes Energy’s leaders wrote on its website.

“Rising costs are already putting upward pressure on electric rates, and the added burden from the ice storm will significantly increase that pressure resulting in higher bills for our members for years to come,” they wrote.

The increase approved this month affects all rate classes and members in a wide swath of western and northern Michigan stretching from near Kalamazoo north to the Straits of Mackinac.

“GLE must rely on rate changes to ensure the costs are fairly distributed among members while maintaining the cooperative’s long-term financial stability,” Culver said.

The co-op’s crews are still removing trees and branches from the storm, to protect the power grid from further damage, she said. The work is expected to be complete by the end of October, some seven months after the storm.