Michigan power company seeks “ice storm” exemption over customer credits required for extended outages

By Paula Wethington

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    Michigan (WWJ) — A Northern Michigan utility company has asked to be waived from a state law that requires billing credits for customers who are left without electricity for an extended period.

The letter, which Alpena Power Company filed April 17 with the Michigan Public Service Commission, claims the March 28-30 ice storm in Northern Michigan was an “act of God.”

Michigan’s power outage credit rule takes effect anywhere from 16 to 96 hours after a power outage, with eligibility depending on the reason for the outage. Eligible customers can then receive $40 a day, which is meant to help cover their out-of-pocket expenses and serve as an “accountability metric,” according to the Michigan Public Service Commission.

In the case of the ice storm, the 96-hour rule applies. Some people in Northern Michigan were without power for two weeks.

Credits are automatically applied to a future bill, but the billing credits will not be available for everyone in the ice storm region.

The state credit law does not apply to electric cooperatives or municipal electric utilities such as Presque Isle Electric & Gas Co-op, the Michigan Pubic Service Commission explained.

Investor-owned companies such as Alpena Power are required to pay it. Apena Power supplies electricity to about 16,700 customers in parts of Alpena, Presque Isle, Alcona and Montmorency counties in northern Michigan. All four counties are included in a State of Michigan emergency declaration issued by Gov. Gretchen Whitmer.

In its letter, Alpena Power states its “entire service territory experienced impactful weather conditions that resulted in extreme and severe ice accumulation, high winds, downed trees and tree damage, impassable roads, downed and damaged power poles, lines, and related equipment, and damaged transformers.”

The state law, the company argues, includes an “act of God” exemption defined as “an event due to extraordinary natural causes so exceptionally unanticipated and devoid of human agency that reasonable care would not avoid the consequences.”

Alpena Power seeks a hearing with the commission to address the matter.

Ice storm mitigation and assistance efforts

The State of Michigan has already issued a state disaster declaration and has compiled announcements and resources on the 2025 Northern Michigan ice storm page.

A bill has been introduced in the Michigan House to exempt schools in the ice storm region from makeup days that would otherwise be required this school year.

A request has been made for a presidential emergency declaration for the affected counties.

Steps are in the works to prepare a formal application for a major disaster declaration from federal officials.

U.S. Rep. Haley Stevens has introduced federal legislation under the title “Prolonged Power Outage Relief Act,” seeking a path to low-interest loans for residents or businesses dealing with extended power outages.

Michigan Storm Chasers organized a donation drive and delivery convoy for food and household supplies.

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