Gov. Gretchen Whitmer is appealing to federal emergency officials for more aid after northern Michigan's historic ice storms. The Federal Emergency Management Agency rejected aid requests for utilities, individuals and long-term disaster mitigation projects when they approved $50 million dollars in aid for local governments last month.
A letter from Whitmer to FEMA outlines the need for aid in the three categories.
“While we are grateful for the resources that you have already committed through your declaration of a Major Disaster and activation of portions of the PA (Public Assistance) program, many recovery needs remain,” Whitmer said in a news release.
Whitmer says in the letter that northern Michigan utilities, which are often smaller and serve a smaller customer base, will be left with no choice but to further costs onto customer.
Allan Berg is the CEO of Presque Isle Electric and Gas Co-op, which serves 35,000 members across nine counties in northern Michigan.
“We've borrowed $150 million on emergency lines of credit. Which is $8.5 million annually in interest," he said, noting that the previous record for cleanup was $1.3 million.
He says the utility took out the loans to cover costs from the storm and they may face tough decisions if Whitmer's appeal is rejected.
"We would have to convert the $150 million into a 30-year mortgage and then pay back the interest annually along with that portion of the $150 million. That would be the worst-case scenario."
The co-op plans to raise rates starting this fall. Berg said that they are still cleaning up debris.
“There does remain a lot of debris, yet. Through our right of ways, and leaning trees, and different things that need to be cleaned up,” he said.
The state has 30 days to submit a formal appeal to FEMA.
Whitmer's effort is supported by both of Michigan's Democratic U.S. Senators, Republican Congressman Jack Bergman (R-Watersmeet) and state Senator John Damoose (R-Harbor Springs).
