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Northern Michigan co-op members see new charge to cover ice storm costs

Utility workers continue working around the clock to restore power in remote areas of northern Michigan over two weeks after an ice storm caused catastrophic damage across the region.
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Utility workers with the Presque Isle Electric & Gas Co-op working to clear debris following March's ice storm.

Members of a northern Michigan electric cooperative are seeing a new charge on their bills this month. The $20 monthly fee is helping pay for damages caused by this year's catastrophic ice storm.

Presque Isle Electric & Gas Co-op had to nearly rebuild its entire grid after the storm, replacing 3,800 miles of power lines, 2,800 damaged poles, 900 transformers and 409 crews that accumulated 400,000 hours of work. In total, PIE&G accumulated around $150 million in costs, according to its website.

Pam Assemany, a member of the co-op and lives in Atlanta, Michigan, said many in the community are upset by the new fee—especially those on fixed incomes—but understands the situation.

"We live way back in the woods so I know that they have a lot of power lines to keep up and take care of,” Assemany said. “I'm not happy about having to spend an extra $20 but I do understand where it comes from."

The co-op is asking residents to sign a petition urging the Trump administration to approve Gov. Gretchen Whitmer’s appeal for federal disaster aid for utility companies.

The Federal Emergency Management Agency has approved $50 million in aid for the region, but only local governments and nonprofits are currently eligible.

PIE&G CEO Allan Berg previously told WCMU that if the appeal is not granted, the co-op will face difficult decisions.

“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,” Berg said.

In May, the state House passed a $100 million relief plan, but the bill has yet to come before the full state Senate.

State Sen. Ed McBroom, R-Waucedah, said the need for aid across the region remains urgent.

“Anything that we can do to help keep people’s utility rates in check and anything we can do to certainly help a couple of the small businesses that might otherwise not stay afloat—I think those are probably key areas that I’m focused on,” McBroom told WCMU.

PIE&G did not respond to a request for comment on this story.

Rick Brewer is the news director at WCMU Public Radio, where he has led the newsroom since February 2024.
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