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ALPENA — The Michigan Electric Cooperative Association (MECA) expresses concerns for rural co-op utility companies and their members, following the Federal Emergency Management Agency’s (FEMA) rejection of the State of Michigan’s appeal for multiple federal disaster aid programs.

These requests were in response to the March 2025 ice storm that caused widespread damage across northern Michigan and forced utility companies to rebuild much of their electrical systems. After the storm struck, most electric users in northern Michigan lost power, many for multiple days or even weeks.

According to a Michigan State Police (MSP) press release on Oct. 24, FEMA officials reaffirmed the denial of Public Assistance (PA) Category F funding, which would have supported permanent repairs to damaged utilities, and Individual Assistance (IA), which helps residents with housing and disaster-related losses. FEMA stated that the appeal of denial for the Hazard Mitigation Grant Program (HMGP), which funds long-term projects to reduce future risks, is still under review.

Northeast Michigan utility coop, such as Presque Isle Electric & Gas Co-op (PIE&G), who had to open an open line of credit well north of $100 million to pay for the repairs. If the FEMA aid would have been approved, the federal funds could have been used to help cover the repair costs or at least a portion of them.

Because of the cost of replacing nearly their entire infrastructure system, PIE&G was forced to implement a fee on member’s bills in order to make its loan payments.

On Aug. 26, PIE&G CEO Alan Berg told The News that the co-op added a $20 a month fee on every metered bill to pay the ongoing interest costs for a $150 million loan. Berg was hopeful at the time that FEMA would reconsider its first denial and that PIE&G would get some federal help. However, that turns out not to be the case.

A message was left with Berg on Thursday seeking comment on FEMA’s denial and what the path forward for members is.

On August 26, The News first reported that Gov. Gretchen Whitmer had announced FEMA’s denial for the state’s initial requests for “critical assistance in the wake of the historic storm in late March.”

Though FEMA denied those funding requests, FEMA did grant funding for local municipalities. Utility companies, residents, and small businesses were excluded.

The Michigan Electric Cooperative Association (MECA) issued a press release on Wednesday regarding FEMA’s denial, stating that the decision will ultimately lead to high costs for local communities that utility co-ops serve.

“Because electric cooperatives are member owned and not-for-profit, every dollar spent on storm recovery affects local Michigan families, farmers, and small businesses,”John Kran, president and CEO of MECA, said in the release. “MECA is working every day with our state and federal partners to understand the recent appeal denial and explore all available options so we protect and provide relief to the tens of thousands Michigan ratepayers affected by this unprecedented storm.”

Congressman Jack Bergman, R-Watersmeet, also expressed his disappointment about FEMA’s decision.

“Northern Michigan families and communities are still carrying the burden of the devastating ice storm, and they deserve the full support of FEMA to recover,” Bergman told The News in August. “I’m committed to fighting for the resources our region needs, which is why I strongly support Governor Whitmer’s appeal to FEMA’s denial. This is about standing up for northern Michiganders and ensuring we are not left behind.”

U.S. Senator for Michigan, Gary Peters, D-Bloomfield Township, also mirrored Bergman’s comments regarding the first FEMA denial. He told The News he would support the governor in any way possible during the appeal process, which was eventually denied.

“Northern Michigan was devastated by the ice storms earlier this year, and families and businesses are still struggling to rebuild,” Peters told The News in August. “Recovery will continue to be out of reach without these critical resources from FEMA, which is why I support Governor Whitmer’s appeal. Michiganders deserve better.”

Kayla Wikaryasz can be reached at 989-358-5688 or kwikaryasz@TheAlpenaNews.com.