LANSING — Following the news that hundreds of thousands of rural Michiganders could see skyrocketing energy bills because the Trump administration denied federal disaster aid for northern Michigan, Price Hike Mike Rogers has remained silent – once again choosing political expediency instead of addressing rising costs for working families.
“Mike Rogers’ silence on these devastating energy bill hikes shows exactly where his priorities lie—and it’s not with the hardworking Michiganders who could be forced to shoulder thousands of dollars in additional costs through no fault of their own,” said Michigan Democratic Party spokesperson Joey Hannum. “Price Hike Mike has made it clear that he cares only about political expediency and staying in Trump’s good graces, no matter how much it costs Michigan families.”
Following a catastrophic ice storm that devastated northern Michigan in March, the Trump administration denied Michigan’s request for federal disaster aid to two nonprofit electric utilities to repair and restore electric services. Without this support, ratepayers could face surcharges and rate hikes “equivalent to at least $4,500 per household.”
Households whose power comes from PIE&G have already been forced to pay an extra $20 per month to cover interest payments for the electric grid repairs, and Great Lakes Energy increased its rates by an average of $17 per month. Still, POLITICO reports, “ratepayers appear barely aware that their potential liability could be much more.”
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POLITICO: Electricity prices jump after Trump rejects disaster aid for Michigan utilities
- A recent decision by President Donald Trump to deny disaster aid to two electric utilities in rural northern Michigan could cost residents tens of millions of dollars.
- […] Those households could now face thousands of dollars apiece in rate hikes to make up for the costs of rebuilding their communities’ electric grids after a three-day ice storm in March, utility officials and lawmakers warned.
- The denial came after the Trump administration documented $90 million in damage to utility infrastructure, according to records obtained by POLITICO’s E&E News. The amount is nearly five times the federal threshold to qualify for disaster aid. But in its October denial letter, the Federal Emergency Management Agency told Democratic Gov. Gretchen Whitmer that assistance to the utilities “is not warranted.”
- “It could be tens of millions of dollars left on the backs of the members,” said Allan Berg, the CEO of Presque Isle Electric & Gas, known as PIE&G, in northeastern Michigan.
- […] Whitmer warned Trump in August that ratepayers face surcharges and rate hikes “equivalent to at least $4,500 per household” without federal aid.
- […] Trump denied aid for the Michigan utilities using regulatory fine print — in a way that appears to have never been used before.
- […] His declaration excluded utilities, even though the destruction of the electric cooperatives’ equipment accounted for $90 million of the $137 million in FEMA-certified damage from the ice storm. The “primary impact” of the storm, the agency’s damage assessment said, was “damage to utilities.”
- […] Whitmer appealed the denial in August. Trump also rejected that request, in October. The decision is final.
- [..] Households whose power comes from PIE&G recently started paying a $20 monthly surcharge to cover interest payments on a $150 million line of credit the utility received to replace 2,800 utility poles, 900 transformers and 3,800 miles of power lines after the ice storm.
- Great Lakes Energy, which repaired 4,300 miles of lines and 3,100 poles, increased its monthly rates by an average of $17.
- Yet ratepayers appear barely aware that their potential liability could be much more.
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