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Recovery, Resilience, and the Road Ahead

The March 2025 ice storm was the most devastating natural disaster in Presque Isle Electric & Gas Co-op’s history — and one of the most destructive utility events northern Michigan has ever seen. We are committed to full transparency with our members about the storm’s impact, the costs we’ve incurred, and the ongoing effort to secure federal reimbursement through FEMA.

Currently, PIE&G has submitted $145 million in 2025 ice storm costs for reimbursement.

What Happened

In late March 2025, a catastrophic ice storm coated every distribution line across all nine counties of our service territory with an inch or more of ice. The weight of that ice snapped poles and trees, causing the collapse of infrastructure across the entire PIE&G grid.

By the numbers:

  • 2,800+ utility poles replaced or repaired
  • 900 transformers repaired or replaced
  • 3,800 miles of lines restored
  • 400,000+ work hours to restore service
  • Thousands of workers deployed around the clock
  • ~3 weeks to rebuild the entire PIE&G electric grid

March 2025 Compared to Other Storms:

Prior to March 2025, the most expensive storm in our cooperative’s history cost $1.3 million. The March 2025 ice storm caused more than $150 million in damage — more than 115 times greater than anything we had ever faced.

Our crews — your neighbors and fellow co-op members — worked in brutal conditions around the clock to restore power as quickly and as safely as humanly possible. We will forever be grateful for their extraordinary effort.

Storm Repairs & Emergency Line of Credit

The total cost of repairs, service restoration and cleanup totals roughly $160 million. To ensure we had the resources to cover storm recovery costs immediately, PIE&G secured an Emergency Line of Credit (ELOC) at a 5.65% interest rate.

The annual interest on that loan is approximately $8.5 million — nearly $700,000 per month. This is why the PIE&G board approved a $20/month emergency storm recovery fee for electric meters at the June 24, 2025 member meeting. The fee covers only the interest on the loan — not the principal, and not the broader cost of recovery work.

PIE&G does not profit from this fee. As a not-for-profit, member-owned cooperative, every dollar collected goes directly toward meeting our monthly interest obligation while we pursue federal reimbursement.

Federal Advocacy & FEMA Timeline

Pursuing federal disaster reimbursement is a complex, multi-step process. Here is where things stand:

The storm causes catastrophic, unprecedented $160 million in damage across PIE&G’s entire nine-county service territory. PIE&G took out an emergency line of credit to cover storm recovery costs. A $20 per month emergency storm recovery fee was also added to member bills to service the monthly interest payments on this loan.

A federal disaster declaration for northern Michigan was declared, opening the door to FEMA Public Assistance funding – but only for emergency work and debris removal (FEMA Categories A and B).

In October, FEMA denied Category F funding. This is the category that covers permanent repairs to utility infrastructure. It was the most critical category for PIE&G, representing the vast majority of our storm recovery costs. Following the denial, Governor Whitmer and Michigan’s entire congressional delegation began actively advocating for an appeal.

After months of bipartisan advocacy efforts, FEMA amended Michigan’s disaster declaration to include Category F funding for utilities. This reversal came after months of sustained advocacy by our congressional delegation, the National Rural Electric Cooperative Association (NRECA), Governor Whitmer, and the PIE&G team.

Category F approval means we are now eligible to apply for funding, but it does not guarantee reimbursement. PIE&G has submitted $145 million in documented storm recovery costs for FEMA reimbursement. We have received zero dollars back to date.

FEMA must review all submitted costs to determine which expenses qualify and at what level. Under the program, FEMA may reimburse up to 75% of eligible costs. The actual amount PIE&G will receive — and when — remains uncertain. Based on the experience from other regions that have experienced disasters, it may not be until 2027 before we have definitive answers.

Frequently Asked Questions

Why hasn’t PIE&G received any FEMA money yet? As of today, no funds have been received. FEMA approved Category F eligibility for utilities to receive reimbursement of storm costs in March 2026. PIE&G has documented and submitted our storm expenses to FEMA. It is now in the process of independently reviewing our documentation to determine which costs qualify and at what level. That review process takes time.

How much could PIE&G receive from FEMA? PIE&G has submitted $145 million in costs. FEMA can reimburse up to 75% of eligible expenses. The actual amount will depend on FEMA’s review of each cost category. Not all submitted costs are guaranteed to qualify.

Why doesn’t PIE&G have insurance for something like this? FEMA is effectively the insurance policy for catastrophic disasters of this scale. For member-owned rural electric cooperatives, federal disaster assistance programs exist precisely because private insurance is not available or practical for events of this magnitude.

How long will the $20 monthly storm recovery fee last? Unfortunately, we cannot reduce or eliminate it until we know how much federal funding we will actually receive and when. We will continue to update members as soon as we have more information from FEMA on our reimbursement application.

What does the storm recovery fee pay for? The fee is currently covering the roughly $8.5 million in monthly interest charges that we must pay on our emergency loan. If and when FEMA funding arrives, we will then be able to reassess how to pay off that loan and adjust our storm recovery finances.

Is PIE&G profiting from the $20/month emergency storm recovery fee? 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 $160 million emergency loan that was needed to cover the costs to rebuild our critical infrastructure following the storm.

Is the $20 fee related to PIE&G’s new headquarters building? No. The fee is solely related to interest payments on the $160 million emergency loan used to fund storm recovery. The new headquarters building was not a factor in the storm’s costs. In fact, the facility served a critical role during recovery — hundreds of crews were dispatched daily from that location, which served as our emergency operations, dispatch, warehouse, and logistics hub throughout the restoration effort.

Does my natural gas account have a storm recovery fee? No. The $20/month emergency storm recovery fee applies only to electric meters, not natural gas accounts.

I have more than one electric meter. Do I pay the fee multiple times? The fee is charged once per service location. If you have two meters at the same property, you pay once. If you have electric service at two separate properties, you pay once per location.

Was the emergency fee approved before the storm? No. The PIE&G board approved the emergency storm recovery fee on June 24, 2025, after tracking and forecasting storm recovery costs throughout the restoration period.