Residents of rural northern Michigan are bracing for major financial fallout after President Donald Trump denied disaster aid sought by two electric cooperatives hit hard by a devastating March ice storm. The refusal, issued on Oct. 22, could leave households responsible for tens of millions of dollars in repairs to their local power grids.
The denial stands out as one of the most consequential examples of the administration’s recent pullback on federal disaster assistance. Despite a FEMA assessment documenting $90 million in damage to the utilities’ infrastructure — nearly five times the threshold for aid — the agency informed Democratic Gov. Gretchen Whitmer that assistance “is not warranted.”
Allan Berg, CEO of Presque Isle Electric & Gas (PIE&G), warned that the financial burden now falls directly on residents. “It could be tens of millions of dollars left on the backs of the members,” he said. Great Lakes Energy, the other affected cooperative, stated that any unreimbursed costs “will be paid for by the cooperative’s entire membership.”
Both utilities are nonprofit cooperatives serving 160,000 homes and businesses across a vast, heavily wooded region. They replaced thousands of damaged poles, transformers, and power lines after the three-day storm, which left some areas without power for two weeks. Much of the destruction was attributed to collapsing trees and heavy ice accumulation.
Gov. Whitmer previously warned Trump that ratepayers could face surcharges “equivalent to at least $4,500 per household” if federal aid did not arrive. Her appeal of the decision in August was also denied, leaving the matter closed at the federal level.
Local frustration has grown. GOP Rep. Jack Bergman and several lawmakers urged Trump in a Nov. 13 letter to reconsider, arguing that “without federal assistance, these huge costs will translate into higher rates” for communities already under economic strain.
Meanwhile, political gridlock in Lansing has slowed state relief efforts. A $100 million recovery package passed overwhelmingly in the Republican-led House in March but remains stalled in the Democratic-controlled Senate. State Rep. Parker Fairbairn said the inaction has left residents feeling abandoned. “People were paying tens of thousands of dollars to remove these trees,” he said. “We’ve never seen any storm like this.”
Ratepayers have already begun to feel the impact. PIE&G customers are now paying a $20 monthly surcharge to cover interest on a $150 million credit line taken to fund repairs. Great Lakes Energy raised its average monthly rates by $17.
In small towns across the affected counties, many residents say they were unaware of how high their costs could climb. “I don’t think people are aware of that at all,” said librarian Monique Williams. Another resident, Cheryl Hill, said electricity rates are “already high” and noted, “We’re not millionaires.”
Others fear they may need to seek alternatives if rates continue rising. “I’ll buy solar cells if I have to,” resident Dan Paul said. “We’re just looking to survive.”
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