Member Regulation

Notice to Members of Great Lakes Energy Cooperative

The Great Lakes Energy board will take action on the proposal to become member-regulated in accordance with P.A. 167 of 2008, at its meeting on Dec.21, 2011, to be held at the Fox Hill Event Center in Cadillac, MI. 

What is Member Regulation?

In general, member regulation allows an electric cooperative to make decisions in specific business areas more efficiently and effectively without having to seek the approval of a governmental regulatory agency. 

As a cooperative owned by and operated for the benefit of the members it serves, Great Lakes Energy is regulated by nine co-op members elected by other members to its board of directors. Each director serves a three-year term.

 In Michigan, however, some cooperatives have a double layer of regulation because the Michigan Public Service Commission must also review and approve any decisions made by the board of directors in the areas of rates and charges, billing practices, and accounting standards. This adds time and distance to any operating decision the board makes, as the final decisions are made in Lansing and may be delayed due to the Commission’s large regulatory workload.

We believe that you, and the directors you elect to represent you, can keep those decisions right here at home. Member regulation removes that layer of bureaucracy between you and your cooperative. 

As a historical note, electric cooperatives in Michigan were member-regulated from their start in the late 1930s until the early 1960s, when we asked the Commission for help with service area issues to avoid costly duplication of power lines. Now that we’ve returned to member regulation, the Commission has retained jurisdiction over safety, performance standards, code of conduct, and service area issues. Three of Michigan’s nine electric cooperatives have already returned to member regulation under Public Act 167 of 2008. Great Lakes Energy will be the fourth. Across the nation, the majority of electric cooperatives have always been member-regulated or have returned to member regulation under recent changes in their state laws. In fact, only 14 states have cooperatives that are regulated by a governmental agency. 

Why did Great Lakes Energy propose to move to Member Regulation?

We believe that we know our members and our communities better than a state agency in Lansing, because we work and live here, too. We visit with many of you every day at our office locations, at your home, or on the telephone. 

We also believe that our lines of communication and member support are strong already and will be stronger with that layer of bureaucracy removed. We welcome your questions, suggestions, criticisms, and praise every day, because we want to be the best electric cooperative for you. 

There is also a cost savings with moving to member regulation. We will save over $135,000 in annual fees to the Michigan Public Service Commission. In addition we will save legal fees that are charged to us during the rate change process that in the past has taken more than six months. Future rate changes will be decided by the board of directors. 

You can read more in the Nov/Dec. issue of Michigan Country Lines.

Who sets the rates and rules under Member Regulation?

Your board of directors adopts the policies that state our rates, fees, and billing rules. These will be posted on our website at gtlakes.com under About Us/Rates, Regulations and Bylaws and as always, you can request a copy at either office or ask for a copy to be mailed to you. 

Initially the board may adopt the co-op’s existing rates and rules established under state regulation, giving it time to review them and see if any changes are needed to better suit our members. Remember, these rules were created to regulate the state’s largest utilities, with millions of customers in heavily populated areas, and those rules might not fit as well in more rural and less-populated situations. Ultimately, you have the final say under member regulation, because you can talk to your local director and make sure your opinions are heard. 

What is the process for Great Lakes Energy to change to Member Regulation?

The change to member regulation was proposed at the regular board meeting on September 21, 2011. A minimum 90-day notice period follows before another board meeting is held to consider the proposal on Dec. 21, 2011. This meeting will be open to co-op members. If the board votes to move forward with member regulation, we will notify the Michigan Public Service Commission in writing, and after 90 days the change will go into effect. The member regulation law also includes provisions for reversing this change, if needed.

 How do I comment?

You can ask questions or comment on any cooperative issue in any of the following ways:

 Attend a meeting

Sufficient notice of any upcoming special open meetings will appear in Michigan Country Lines, published and mailed to your billing address 10 times a year. Each meeting will include a time for open comments on any cooperative-related subject, not just the items on the published agenda.

Send an email: Email glenergy@glenergy.com with member regulation in the subject line.

Mail a letter: Mail a letter to Great Lakes Energy at PO Box 70, Boyne City, MI 49712.

Make a telephone call: Call our office at 888-485-2537.