After the catastrophic ice storm of March 28–30, 2025, covering GLE’s northern service area in up to 1.5 inches of ice and high winds, the cooperative faced an unprecedented restoration challenge. Over a three-million-acre swath of Michigan was impacted. GLE members endured widespread outages, and nearly 3,100 poles and more than 4,300 miles of electric and fiber infrastructure were damaged—roughly the distance from Boyne City to Milan, Italy.
The full estimated cost? Approximately $155 million; massive compared to GLE’s typical annual storm-recovery costs of $3.5–4 million.
After a catastrophic storm, one of the biggest challenges any utility faces is how to pay for the damage, especially when it runs into the millions.
So, how do we cover these massive, unexpected costs?
As a not-for-profit electric cooperative, Great Lakes Energy doesn’t have investors or shareholders. We can’t issue more stock or rely on profits to cover these sudden costs. Instead, we follow a model rooted in responsibility and community.
When a major repair or system rebuild is needed, we turn to:
- Emergency reserve funds: Carefully built over time for unforeseen events.
- Insurance: Coverage helps with some damage, but not all. We carry insurance to help with damage to our buildings and their contents, vehicles, and equipment. However, we do not carry insurance that covers the costs of repairing storm-related infrastructure damage. The cost of insuring the electrical infrastructure for a utility such as GLE would be so high that few, if any, insurance companies offer it. It is more cost-effective for our members if we mitigate the risk of storm damage through regular system maintenance and vegetation management and pay for actual storm damage costs as they occur.
- Federal and state disaster aid: These are not guaranteed and often come with delays or restrictions. Unfortunately, in the after math of the 2025 ice storm, there is still considerable uncertainty around what types of relief funding may be available and which specific expenses might qualify.
IMPORTANT:
FEMA’s initial disaster declaration for the March ice storm did not include Category F funds for permanent infrastructure repairs. Governor Whitmer has appealed that decision with strong bipartisan support, and we ask that you show your support by signing a petition urging President Trump to approve additional disaster relief funds from FEMA.
Signing the petition takes less than five minutes, but making your voice heard on this issue is invaluable as we continue to recover from the ice storm. Time is of the essence, so please act NOW.
- Member support: Because we’re member-owned, long-term solutions sometimes require shared responsibility, including potential changes in rates. Member rate contributions, to cover remaining costs, spread across all members—not just those impacted directly. Rates are designed to fairly distribute the responsibility for covering these costs among our membership while generating sufficient revenue to ensure the cooperative’s long-term financial stability and its ability to provide members with the safe and reliable service they need to power their homes and businesses.
Moving forward
With estimated costs of $155 million, the financial toll of this storm is significant. Costs that exceed disaster aid and reserves must be covered through loans and member contributions.
GLE continues to push for full financial support from all possible avenues. While we actively work to find solutions that help offset the financial impact of the storm, GLE’s Board is considering rate increases across all classes to manage repayment of emergency loans and rising operating demands – necessary to cover these costs, while still making critical investments in stronger, smarter infrastructure. But this isn’t just about numbers. It’s about ensuring that every member continues to receive safe, reliable service for decades to come.
For more information about the ice storm, visit gtlakes.com/ice-storm-information/