As a cooperative, Cloverland is committed to fairness, transparency and ensuring that our rates accurately reflect the true cost of delivering power to our members. One of the most important tools we rely on is the Cost of Service Study (COSS).
A COSS is a detailed financial and engineering analysis that evaluates how much it costs to serve each rate class: residential, commercial and industrial customers. Power supply, infrastructure needs, operations and member service expenses are allocated based on how each rate class uses our system. This study is a standard procedure for cooperatives, typically conducted every two to three years, to ensure that rates remain fair, equitable and aligned with actual costs. It prevents one group of members from subsidizing another and provides an objective foundation for the board’s decisions.
Our most recent COSS confirms what we are seeing across the industry: rising power supply costs, higher material prices and the need to strengthen our aging infrastructure. These findings guide the proposed rate adjustments that the board of directors will vote on in February, with implementation beginning in April. The proposal is driven by three key factors:
- Power Supply Costs – The cost of generating and purchasing electricity continues to rise and remains the single largest portion of Cloverland’s expenses.
- Increased Material Costs – Prices for poles, wire, transformers and essential equipment have surged due to supply chain challenges and inflationary pressures.
- Capital Work Plan – Our $75 million, four-year plan replaces aging infrastructure and strengthens our system to support long-term reliability.
Without these investments, reliability would decline, outages would increase and restoration times would lengthen. These projects are essential to maintaining dependable service for the future and are guided by our FORGING strategic plan, which prioritizes Financial stability, Organizational excellence, Reliability, Growth, Innovation and Nurturing our employees and community.
We recognize that any rate increase impacts our members and the board does not take this decision lightly. The purpose of this adjustment is not to generate profit. As a not-for-profit, member-owned cooperative, our goal is to cover expenses responsibly and continue the investments that keep our communities safely and reliably powered every day.
Your Voice Matters
Member input is central to how we plan and make decisions. As a not-for-profit, member-owned cooperative, we invite you to learn more, ask questions and share your feedback on the proposed rate adjustment at our upcoming community meetings:
- January 27, 6 PM – District B: LSSU Arts Center, Sault Ste. Marie
- January 28, 6 PM – District C: Comfort Inn, Manistique
- January 29, 6 PM – District A: Little Bear East, St. Ignace