This op-ed first published in The Detroit News. .

While we are nearing the end of the summer, some northern Michigan residents are still dealing with the impacts of an extreme weather event from the spring—the historic ice storm. We’re nearly five months past that storm, the total damage is becoming more clear, and the needs of communities are more stark.

There were over 3 million acres damaged across 12 counties and more than 300,000 Michiganders lost power. With such a staggering scale of damage, people are asking, “Who is going to pay for the recovery?” Looking at the cost accrued so far and comparing to the amount of aid coming in, it’s clear there is a very large cost gap. This means locals will be expected to pay unless the state and federal governments step in. 

We know this because if we look at just two entities impacted, Great Lakes Energy and Presque Isle Electric & Gas, they have amassed, respectively, $155 million and $150 million in recovery costs. Two electric cooperatives that provide power for approximately 160,000 Michigan homes and businesses are in need of $305 million in relief. 

To pay the loans needed, Great Lakes Energy is adding a roughly $15.81/month charge for the average residential member, with an expectation that members will pay more in the future depending on government relief funds. PIE&G is adding a $20/month surcharge on electric bills to cover $8 million in annual interest on their emergency loan—not even the principal. Co-op members, understandably, should shoulder some of the burden of recovery. As small cooperatives though, members haven’t dealt with damages remotely this size. PIE&G’s previous largest storm caused $1.2 million in damages. While some residents can easily absorb a cost increase, the storm impacted some of our most financially burdened residents, for whom rate increases can be crippling.

Let’s look at the relief that’s being considered or is already approved. Five months after the storm, a $100 million ice storm aid package passed the Michigan House, but it has stalled in the state Senate. Projected large declines in state revenue and increased expenses add more uncertainty to the aid package’s passing. The nonprofit Citizens Research Council of Michigan warns that because of the Big Beautiful Bill, “Michigan will have to pay $1.1 billion in increased Medicaid and SNAP food benefits by 2032 and lose $677 million in tax revenue next year…” The upshot: It’s anyone’s guess as to how long communities will wait for the state.

Federally, $50 million in relief has been approved. Under FEMA, if a state puts up 25% of recovery funds, the feds will cover the rest. If our state senate were to pass the relief bill, it would allow an additional $250 million to become available from FEMA! Unfortunately, FEMA could be gone by the end of the year, leaving natural disaster relief to the states.
If all of the proposed relief funds were to be approved, that would cover the damages for only two cooperatives. That leaves local municipalities to find ways to increase revenue and help residents recover. It won’t help today, but one of the best tools we have to get prepared for extreme weather events like the ice storm is to rapidly transition to clean energy and battery storage systems, which increase grid resilience, keep energy prices affordable, provide local jobs and offer significant local tax benefits. There is no silver bullet solution and solutions will look different for each community, but Northern Michigan has a real opportunity to pursue energy independence and provide funds to help communities prepare for the future.

Nicholas Jansen is Groundwork’s Rural Clean Energy Organizer. nicholas.jansen@groundworkcenter.org