Governor Whitmer Appeals FEMA Denials of Key Disaster Aid Programs Following Devastating Ice Storm in Northern Michigan

Strategic Insights -

After a historic ice storm paralyzed northern Michigan in March 2025, Governor Gretchen Whitmer has appealed to the Federal Emergency Management Agency (FEMA) to reverse denials of key disaster aid programs. The severe ice storm caused widespread power outages, hazardous conditions, and record levels of infrastructure damage across 13 counties and the Little Traverse Bay Bands of Odawa Indians.

The denial of FEMA's Public Assistance (PA) Category F funding, Individual Assistance (IA), and Hazard Mitigation Grant Program (HMGP) has significant implications for smaller electricity companies and rural families who are still struggling to rebuild. The State of Michigan has 30 days to submit a formal appeal to FEMA, and the outcome will determine the extent of federal support for long-term recovery.

Key Takeaways:

  • The ice storm paralyzed northern Michigan with extreme ice accumulation, causing prolonged and widespread power outages, hazardous conditions, and record levels of infrastructure damage between March 28 and 30, 2025.
  • FEMA denied assistance for PA Category F, which would fund permanent repairs to damaged utilities, Individual Assistance (IA), which helps residents with housing and disaster-related losses, and Hazard Mitigation Grant Program (HMGP), which funds long-term projects to reduce future risks.
  • The denial of PA Category F funding has significant implications for smaller electricity companies, or rural electric cooperatives, such as Presque Isle Electric & Gas Co-op (PIE&G) and Great Lakes Energy (GLE), which were among the hardest hit.
  • Both PIE&G and GLE reported catastrophic damage, with estimated recovery costs exceeding $150 million and $155 million, respectively, and the costs will be passed directly to members if FEMA assistance is not granted.
  • The State of Michigan has 30 days to submit a formal appeal to FEMA, providing updated data and compelling justification for why these programs are essential to support long-term recovery.
  • The outcome of the appeal will determine the extent of federal support for long-term recovery, with potential impacts on rural families, businesses, and electricity companies.

Statistics:

  • Between March 28 and 30, 2025, a severe ice storm paralyzed northern Michigan with extreme ice accumulation, causing prolonged and widespread power outages and hazardous conditions.
  • 13 counties and the Little Traverse Bay Bands of Odawa Indians were affected by the disaster.
  • FEMA denied assistance for:

+ PA Category F funding, which would fund permanent repairs to damaged utilities.

+ Individual Assistance (IA), which helps residents with housing and disaster-related losses.

+ Hazard Mitigation Grant Program (HMGP), which funds long-term projects to reduce future risks.

  • Estimated recovery costs for Presque Isle Electric & Gas Co-op (PIE&G) exceed $150 million, and costs for Great Lakes Energy (GLE) exceed $155 million.
  • If PIE&G members are forced to repay $150 million plus interest, it would amount to at least $4,500 per household.
  • The State of Michigan has 30 days to submit a formal appeal to FEMA.

Sources:

  • Governor Gretchen Whitmer's news release, August 25, 2025
  • Michigan.gov, August 25, 2025
  • FEMA website, [no specific date]
  • Presque Isle Electric & Gas Co-op website, [no specific date]
  • Great Lakes Energy website, [no specific date]