Posted January 5, 2025
Cloverland Electric Cooperative’s (the “Cooperative”) Board of Directors (the “Board”) desires to adopt new rates for electric service, effective April 1, 2026.
The Cooperative desires to revise its rates for electric service based on a recent Cost of Service Analysis (COSA) completed by GDS Associates, Inc. Engineers & Consultants and subsequently presented to the Board of Directors on December 10, 2025. The last COSA conducted by the Cooperative was in January 2022, which resulted in rate change in 2023.
A cost-of-service analysis is recommended every few years to evaluate inflation of costs compared to revenue, financial lending requirements, as well as revenue requirements to meet future construction work plans. This analysis collectively represented a need to increase rates for all rate classes. Key factors contributing to rising costs include increasing power supply costs and increased operations and maintenance costs. A multi-year rate plan was recommended with a step-in rate each year for the next three years, known as the “rate plan”.
Residential members can expect a rate increase of approximately 6.5% in year one (2026), followed by stepped adjustments in years two (2027) and three (2028).
Commercial and non-residential members can expect a collective rate increase of approximately 9.6% in year one (2026), followed by stepped adjustments in years two (2027) and three (2027.
The Board will review and consider a vote to approve its new “rate plan” at the February 24, 2026 board meeting in Sault Sainte Marie, MI. The current rates and the new proposed rates “rate plan” can be reviewed at the Cooperative’s website: cloverland.com. Rate tariffs will be filed with the Michigan Public Service Commission upon adoption. A 30-day notice to members prior to the rate(s) taking effect will be published if approved.