All of PIE&G’s storm $113 million costs to be covered by FEMA
by Peter Jakey–Managing Editor
Presque Isle Electric and Gas Cooperative (PIE&G) has received its best news yet with the Federal Emergency Management Agency (FEMA) obligating another $113 million to cover the costs related to the rebuilding of the electric distribution system following the late March ice storm of 2025.
The cost of the storm was approximately $152 million with co-op members paying $20 a month to cover the interest only on the emergency line of credit from the National Rural Utilities Cooperative Finance Corporation.
According to PIE&G CEO Allan Berg, only $13 million is in the bank and that took two months to receive from FEMA after obligation. Berg got to share the news with co-op members at the annual meeting last Friday at Posen Consolidated Schools.
“We now have $146 million dollars of $152 million now obligated, and obligated means that they reviewed all of our documentation and now it’s moving on to state review. So, $146 million has been obligated as valid costs, and then once the state review is completed, we are anticipating receiving 75 percent of those funds or about $85 million in addition to the $13.3 million already received.”
Berg said PIE&G is now in the process of requesting the interest cost on the emergency line of credit.
“We currently have $5.8 million in interest cost that was submitted so far, but those interest costs change every day,” said Berg. “For the remaining balance, assuming we have to finance 25 percent of the $146 million, that leaves us with a balance of $36 million. If we do get some of this interest costs back, it will simply reduce our outstanding $36 million dollar balance we have left to pay. At this point, we have to expect to pay back some of this ice storm over many years.”
The timeline for the state to review and receiving the funds could be up to six months.
“I think it’s important to know that while this is great news, and it is great news, we don’t control the timing that we receive the funds,” said Berg. “Everyone’s really focused on the $20 ice storm fee, and understandably.
“And the minute these funds come in, we’re definitely looking to reduce or eliminate the ice storm fee. That has always been the intent, but we don’t know when the cash will hit our bank account yet.”
Around 1,400 workers from across the United States helped to restore the system and replace 2,800 poles and 900 transformers.
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Results from the election of directors were released during the annual meeting with Dana Nutt receiving 499 votes to take over the Cheboygan district seat from the retiring John Brown, who served 33 years. Angela Stempkey-Furst came 33 votes short.
Christopher Nagel of the Montmorency district and Jerry Smigelski of the Presque district were both re-elected to three-year terms.
Here are the other Presque Isle district vote getters: Russell Martin, 458; Brittany Storey, 310; Justin Hoerner, 282; and Joseph Guzman, 186.
Sandra Borowicz was elected chair; Daryl Peterson, vice chair; Smigelski, secretary; and Brentt Lucas, treasurer.
