2025 Ice Storm Recovery FAQs

2025 Ice Storm Recovery FAQs2025-07-17T11:56:04-04:00

We are committed to ensuring transparency and clear communication during and after the catastrophic ice storm that caused widespread damage to northern Michigan, including 100% of PIE&G’s service territory. We have heard many questions from the membership, and we have developed this page to answer some commonly asked questions.

 

What was the extent of damage from the ice storm and what did it take to repair and restore our electric services?2025-07-14T15:20:20-04:00

This storm resulted in catastrophic damage that required replacing or repairing more than 2,800 utility poles, 900 transformers and 3,800 miles of lines across nine counties. It took more than 400,000 work hours and thousands of workers to restore power. These teams worked around the clock to repair or rebuild the entire PIE&G electric grid in approximately three weeks.

What is the cost of recovering from the ice storm?2025-07-14T15:19:33-04:00

The cost for repairs, service restoration and clean-up is substantial and unlike any other storm our region has experienced in the past 100 years, with a current total cost well over $100 million. We project that the final costs could run as high as $150 million because we are still receiving and processing invoices from the storm and we are still in debris clean-up and post-storm repair mode.

Is there going to be an increase in our electric bills?2025-07-14T15:15:18-04:00

Yes. Due to the unprecedented amount of damage and the extreme cost of recovering from the ice storm, the cooperative had to secure a $100 million Emergency Line of Credit (ELOC) from our lender. While we wait for state and federal financial assistance, we must begin paying interest on this loan, which will cost about $8 million annually. The PIE&G board approved an emergency storm recovery fee to cover this interest expense. The fee does not cover the cost of the recovery work, only the interest on the ELOC.

What is the amount of the monthly increase?2025-07-14T14:44:28-04:00

An emergency storm recovery fee of $20 per month for electric meters was approved at the June 24, 2025, member meeting to pay the ongoing interest costs for the $100 million emergency loan we secured from our lender, which is necessary to ensure our not-for-profit cooperative’s financial stability.

I have more than one electric meter, do I have to pay more?2025-07-14T14:43:51-04:00

The $20/month emergency storm recovery fee for electric meters is only charged once per location. If you have a home with an electric meter and a pole barn next door with another electric meter, you will only be charged one time. If you have a home in Alpena County and a home in Cheboygan County (2 sites), you will be charged at each location/site.

What is the cost of an average major winter storm?2025-07-14T14:41:28-04:00

Historically, in the last 20 years, repair and cleanup after most major storms cost between $300,000 and $500,000 with the most expensive storm at $1.3 million. The 2025 ice storm, with recovery expenses that are already more than $100 million and projected to reach $150 million, is unprecedented and extremely expensive.

What is the $20/month going to pay for?2025-06-30T13:47:23-04:00

The $20/month is projected to be needed to directly pay for the ice storm. We do not have the final cost of the ice storm, but we know this ice storm will have direct costs over $100 million for PIE&G.

How much will $20/month per meter generate?2025-07-14T14:40:30-04:00

How much will $20/month per meter generate?

The projected revenue from the $20/month emergency storm recovery fee per electric meter per location will generate approximately $8 million dollars annually, which is the amount needed to pay the interest on our $100 million emergency loan.

What will the $8 million dollars be used for?2025-07-14T14:39:49-04:00

The $8 million will pay the annual interest cost of our $100 million emergency loan. The cost of recovering from the ice storm has already exceeded $100 million and is projected to reach $150 million. For our $100 million emergency loan, PIE&G secured a 5.65% interest rate. The debt service (interest) on this principal amount is about $8.5 million per year, or almost $700,000 per month, which our co-operative must start paying immediately.

Are not-for-profit cooperatives like PIE&G eligible for federal assistance through FEMA?2025-07-14T14:39:05-04:00

Yes! However, we must work through the federal disaster declaration process, and that takes time. We are working closely with Michigan’s congressional delegation, state legislators, and the governor, who are strongly advocating for federal assistance. We are grateful for their support as we work to secure disaster relief funding.

When will the $20/month end?2025-07-14T14:38:20-04:00

The $20/month emergency storm recovery fee will continue until our emergency loan is paid off. If and when we receive state and/or federal FEMA funding to pay for the extraordinary costs of cleanup and recovery, we will be able to pay off the loan and the monthly fee will no longer be needed.

Will the $20 monthly fee apply to natural gas?2025-07-14T14:37:04-04:00

No. The rates for natural gas have not been adjusted at this time.

Was the emergency fee approved before the storm happened?2025-07-14T14:36:20-04:00

No. We have been tracking and forecasting costs throughout the restoration period to ensure the cooperative’s financial stability. The increase was approved by the PIE&G board on June 24, 2025.

Were members notified about the member meeting where the board voted to approve the 2025 emergency storm recovery fee?2025-07-14T14:35:26-04:00

Yes. Members were notified of this meeting in our June 2025 Michigan Country Lines Magazine, which was mailed to each member on June 10, 2025. The magazine was also available and posted to our website on May 28, 2025.

Will the emergency storm recovery fee double each month?2025-07-14T14:34:24-04:00

No. While we are not done with the recovery process and have not yet received and processed all invoices, we forecast that this additional revenue will cover the interest expenses on our emergency loan.

Is the $20 monthly fee paying for debris cleanup?2025-07-14T14:33:38-04:00

While debris cleanup is part of the $150 million in projected costs and is an important part of caring for our community, it is not a significant portion of the recovery expenses. Most of our costs are related to rebuilding our electric infrastructure in April. To reiterate, the $20 fee is only paying the interest on our emergency loan, not the total costs of repairing our infrastructure and cleaning up debris.

Has PIE&G already received federal funding?2025-07-14T14:32:54-04:00

No. PIE&G has not yet received any federal funding, but we need help because we – the members of this co-op –cannot carry the entire financial burden of this recovery on our own. That’s why we are relentlessly pursuing every available option to get state and federal financial assistance for these recovery costs and are actively working with our state and federal lawmakers and agencies to secure disaster relief funding. We greatly appreciate their support for our community and membership.

Is PIE&G profiting from the $20/month emergency storm recovery fee?2025-07-14T14:32:18-04:00

No. As a not-for-profit, member-owned cooperative, PIE&G does not generate profits. The emergency fee is being used solely to pay interest on the $100 million emergency loan that was needed to cover the costs we have already incurred to rebuild our critical infrastructure following the storm.

Is this $20/month fee because of the new headquarters building?2025-07-14T14:31:29-04:00

No. The fee is only related to paying the interest on the $100 million emergency loan that was needed to pay the costs we have already incurred during and after the catastrophic ice storm.

The new headquarters building was a critical part of efficiently and safely restoring power. We dispatched hundreds of crews daily from this facility, held training briefings from our facility, and ran 100% of our emergency operations, dispatch, warehouse receiving operations, materials storage, and meals, all of which would have been nearly impossible with the layout and space at the prior facility. If this event occurred while we were at our prior facility, we would have had the added complexity of finding a second location to provide these logistics. The new HQ building and property provided us with a centralized space to navigate the ice storm emergency and recovery.

If PIEG receives FEMA funding, will that lower the $20/month emergency storm recovery fee?2025-07-14T14:47:00-04:00

That is our forecast. We need help from our state and federal government or the burden of paying this tab will remain on all of us for years to come.

Does PIE&G have any insurance that will cover these losses? If not, why not?2025-07-14T15:13:35-04:00

No. The cost of insurance to cover our electric infrastructure is estimated at $2-3 million per year.  Our average storm recovery cost is $500k per year, with the most expensive storm at $1.3 million. As a not-for-profit, the cost of this insurance would have to be recovered by our rates and would require about $8/month per member indefinitely. For any regular storm over the last 87 years, this insurance premium would immediately be a loss to the membership. In the event of a 100-year, catastrophic storm like the one we just experienced, it is generally expected that FEMA will reimburse some or all of the recovery costs, mitigating the need and financial sense of carrying insurance on our poles and wires. Our buildings and vehicles are insured, but not our electric infrastructure for the reasons stated above.

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