Utility cooperatives in northern Michigan are now eligible to apply for additional federal aid for the damage caused by last year’s ice storm. President Trump recently reversed the Federal Emergency Management Agency's (FEMA) decision to deny the state’s request for public utilities to receive funding beyond the initial emergency.
The ice storm left more than 100,000 northern Michigan residents without power for several days and in some cases – weeks. Heavy ice accumulation caused trees and electric poles to snap in half, downing miles of power lines.
Gov. Gretchen Whitmer, U.S. Rep. Jack Bergman, R-Watersmeet, and other elected officials in Michigan fought with FEMA for months to grant member-owned utilities the chance to apply for additional funding before the Trump made it official on March 13, 2025.
Whitmer said the cost of damages from the ice storm is still unknown.
“This amendment will help lower the cost for residents who have been paying for the utility repair work following the historic ice storms last year,” Whitmer said.
In a news release, Bergman said that although there have been significant strides towards recovery in northern Michigan, the work is “far from finished”.
"I'm grateful that President Trump corrected FEMA’s initial decision to deny key categories in the disaster declaration and ensured Northern Michigan was not left hanging out to dry," Bergman said.
Allan Berg, president and CEO of Presque Isle Gas and Electric, whose coverage area includes much of the northeast Lower Peninsula, says the newly approved funding won’t lower monthly premiums for members for quite some time. PIE&G members are currently paying an extra $20 per month to cover the estimated interest the co-op is accruing on their massive loan.
“We are now allowed to apply for money,” Berg said. “So, there’s another long time for us to redo our applications, have FEMA consider it, have them agree to certain costs and they might disagree.”
Berg said the co-op still hasn’t received emergency funding they applied for during the storm. The co-op took out $150 million in loans to repair essentially their entire electrical grid.
“The principal balance of $150 million, still remains today, just like it did after the ice storm,” Berg said. “And we've already predetermined that any dollars from the FEMA process would go directly to reducing that emergency line of credit.”
The Great Lakes Energy Electric Cooperative, which services much of the northwest Lower Peninsula, wrote in an emailed statement to WCMU that even if they received the maximum 75% of aid that FEMA provides, it would still leave the co-op with parts of the loan and interest to pay off.
“We know our cost-share will be greater,” Great Lakes Energy wrote. “Although the recent disaster declaration for Category F is a step in the right direction, it is still unclear what, if any, FEMA funding GLE will receive and how long that will take.”
Although it may take time, Berg says the co-op’s goal is to lower member costs as soon possible.
“Our motivation is to do whatever we can to eliminate this catastrophic cost,” Berg said. “So that's what we're working for day in and day out is to reduce these costs for our members”.
