PIE&G responds to FEMA appeal, vows to fight ruling
by Peter Jakey–Managing Editor
While it makes no sense that other areas hit by natural disasters in other parts of the country are getting reimbursed by the Federal Emergency Management Agency (FEMA), while officials from Presque Isle Electric and Gas Cooperative (PIE & G) continue to fight for its members.
The latest setback came, Oct. 22, when FEMA denied Gov. Gretchen Whitmer’s appeal under category F.
“We continue to talk to state and federal leaders to do whatever we can to tell our story and explain why this is really important to our community and our members,” said PIE & G CEO Allan Berg, Tuesday afternoon. “There is no next step, no second appeal process.”
FEMA category A and B of debris cleanup of trees/poles and the emergency work that was performed were both approved.
“Some of our costs fall in each category,” he said. “We are being diligent to find out what dollars go where.”
The ice storms took place over a two-day period at the end of March, leaving 100 percent of the utility’s members without power and forcing an army of linemen to rebuild the system. Some members had the lights back on in days, but in many other cases, it took weeks.
Several months ago, the PIE & G board voted to apply a $20 a month surcharge to one meter at each property to cover the interest of the emergency line of credit that is in place for three years.
“After that, the balance will be financed over 30 years,” said Berg. “Once we know what we will be getting from FEMA, we will know how much of that line of credit remains, we will finance it over 30 years and then we will review our forecasting.”
Berg said it could be well into 2026 before the cooperative has financial answers.
“If there is a chance to get category F approved, that is still a big piece,” said Berg.
PIE & G’s Category F request seeks reimbursement for permanent repair work to infrastructure damaged by the ice storm that brought heavy freezing rain and downed lines.
According to the cooperative, the storm damaged or required replacement of thousands of utility poles, transformers and miles of lines — and the total cost of restoration and recovery has climbed toward $150 million.
Category F was originally denied by FEMA, July 28, followed by an appeal by the governor, Aug. 25.
PIE & G will continue to provide updates on its recovery efforts and funding discussions at www.pieg.com/news.
