Ice Storm Information

The March 2025 ice storm led to extensive costs for GLE, including labor, equipment, fuel, lodging, infrastructure repairs, debris cleanup, and meeting regulatory requirements, among many others. These expenses are currently estimated at $155 million. By comparison, in a typical year,GLE’s storm restoration costs total around $3.5-4 million. Because of the storm’s scale, GLE must rely on emergency loans to cover these costs These loans  will be repaid over time and will accumulate significant interest expenses.

GLE is a not-for-profit, member-owned electric cooperative. We do not have investors to rely on as a source of revenue. That means all storm-related costs that are not reimbursed by state or federal disaster aid will be paid for by the cooperative’s entire membership through the rates they pay for service. To cover these expenses and other rising costs that the cooperative is facing, GLE’s Board of Directors will soon be considering rate changes across all rate classes.

As an electric cooperative, members share equally in the costs to run the business. Rate classes are charged for the actual costs to provide service to each type of member, such as residential or business. Storm restoration costs are always spread out across all members, not just charged to those impacted, and this storm is no different, other than the size and scope of the damage and the costs.

At an open member meeting scheduled for 9:30 a.m. on Sept. 17 at our Boyne City headquarters, GLE’s Board of Directors will consider several proposed rate changes. Under the proposed changes, the kilowatt-hour (kWh) energy use rate for residential and seasonal members would increase by $0.01040 per kWh, and the fixed monthly charge would increase by $6.88.

These changes equate to a $17.18 monthly increase for the average residential member using 800 kWh per month, which includes state mandated changes to the Low Income Fund and the Energy Optimization Surcharge, along with state taxes and fees.

Other changes for other rate classifications will also be considered. If approved, the new rates will take effect on electric bills rendered in November 2025.

The ice storm that caused unprecedented damage to the northern portions of GLE’s service area earlier this year came with significant costs. To offset these storm-related costs, which total an estimated $155 million, along with rising energy supply, infrastructure investment, and operational costs, a rate increase is necessary.

 As a member-owned not-for-profit electric cooperative without investors, GLE must rely on the rates members pay to cover all costs, including any storm costs that aren’t covered by any disaster relief funding the cooperative may be awarded from federal and state sources. Despite a recent federal disaster declaration, there is still considerable uncertainty around what types of relief funding may be available and which specific expenses might qualify. The federal government only contributes up to 75% for qualified expenses and currently has denied expenses for public utility costs. The state can contribute up to 25% but has not committed any funding reimbursement, which means GLE must pay for at least 25% of all expenses. We are anticipating our cost-share will be greater though, as it is highly unlikely that the federal government will reimburse all eligible expenses in full. Additionally, some storm-related expenses, such as interest on emergency loans, are not eligible for reimbursement.

The proposed rate changes 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.

While GLE does carry insurance on its buildings and their contents, vehicles, and equipment, we do not carry insurance that covers the costs of repairing storm-related infrastructure damage. That’s because 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.

Yes. Knowing how unpredictable Michigan’s weather can be and the rural nature of our service area, GLE allocates a portion of its annual budget for storm restoration costs, typically around $3.5-4 million. However, the scope of the damage caused by this ice storm far exceeds anything GLE has ever experienced. At $155 million, the costs related to this storm are more than 40 times our annual storm restoration budget. In just one example, in a typical year, GLE replaces about 800 utility poles. In the wake of this storm, crews replaced more than 3,100 poles in about a three-week period.

At the moment, none. Although the recent disaster declaration is a step in the right direction, it is still unclear what, if any, disaster relief funding GLE will receive. Notably, one category of relief funding, Category F for public utilities, which is the category that directly impacts some of the costs incurred by utilities like GLE, was not included in the declaration.

We are currently working with state and local officials to pursue every option that will reduce the long-term financial impact on GLE, and, in turn, its members. As of August 25, 2025, we were notified that Governor Whitmer has submitted an appeal to the federal government for Category F funding but we do not have a clear timeline as to when an answer will be received.

At most, the federal government only contributes up to 75% for qualified expenses, and currently has denied expenses that qualify as public utility costs. We can still claim many expenses under other FEMA categories, including those for debris and emergency protective measures.  The state can contribute up to 25% but has not committed any funding reimbursement, which means GLE must pay for at least 25% of all expenses. We know our cost-share will be greater, though, as it is highly unlikely that the federal government will reimburse all expenses in full.

Currently, there is significant uncertainty about how much, if any, state or federal disaster relief funding GLE may receive to help offset ice storm-related expenses (see earlier answers). The state has already indicated it will provide no reimbursement. With no clear timeline in sight for when this information may be available, and the high likelihood that it could be many months or even years before GLE might receive any disaster assistance, it’s important that we take action now to ensure the long-term financial and operational stability of the cooperative. To pay for storm-related costs, GLE has borrowed money through emergency loans. The interest GLE pays on those loans does not qualify for reimbursement from disaster relief funds, and it is significant. By taking action now, we are working to reduce the cooperative’s long-term costs that members will have to pay through their electric rates.

In the short term, no. Even if GLE is successful in receiving some disaster relief funding, there are significant portions of the storm-related costs that are not eligible for reimbursement. Any portion of the more than $155 million in restoration and recovery costs not covered through federal and state disaster relief funding will need to be recovered through significant and sustained rate increases beginning this year and continuing for many years to come. However, disaster relief funding would help reduce the scope of future rate adjustment needs.

No. This rate change is tied to the costs associated with meeting new state-mandated energy waste reduction standards that go into effect in 2026.

Since 2008, when the state legislature passed the Clean, Renewable, and Efficient Energy Act, an Energy Optimization surcharge has been billed to all members to fund these programs. The legislation has been amended over the years, and in 2023, lawmakers amended the law again by enacting Michigan Public Act 229, also known as the Clean and Renewable Energy and Energy Waste Reduction Act. The act requires electric and natural gas utilities in Michigan to achieve annual energy savings of 1.5 percent (formerly 1%) of their sales annually beginning in 2026. The savings are determined by the amount of energy efficiency measures claimed by the utility’s members throughout the year.

Current examples of these energy efficiency measures are the rebates available on the purchase of new energy-efficient products and systems through the Energy Wise program.

To offset the costs associated with the state mandates under the new law, GLE’s Board of Directors will be considering an increase to the Energy Optimization surcharge rate at an open member meeting set for 9:30 a.m. on Sept. 17 at our Boyne City Headquarters. If approved, the Energy Optimization surcharge that residential and seasonal members pay on their monthly electric use would increase by $0.00118 to $0.00316 per kWh. For an average GLE member using 800 kWh per month, the new rate would result in about a $1 monthly bill increase. If approved, the new surcharge rate will take effect on electric bills rendered in January 2026.