Regardless of whether spring has fully arrived in the Eastern Upper Peninsula, March marks the official start of a season of renewal. The approach of springtime reminds us all of spring cleaning and launching new plans as winter gives way to spring growth. At Cloverland, we’re embarking on our four-year work plan that was approved by your board of directors in December 2024.
We are working with the USDA’s Rural Utility Service (RUS) to get our loan in place. Working closely with your board of directors, Cloverland has strengthened its equity position, allowing us to secure financing for critical infrastructure upgrades. Due to financial constraints in previous years, we had to defer system maintenance and upgrades. As a result, signs of age are showing as we’ve seen in recent large outages. To improve our reliability and resiliency, upgrades to our system are necessary.
Cloverland’s membership resides in some of the most scenic landscapes that Michigan offers, but this beauty comes at a price. The heavily forested environment of the Eastern Upper Peninsula causes many outages across our system. To improve reliability, we need to enhance our right-of-way program to help keep the trees away from our power lines [see our back cover for 2025 tree trimming plans]. It also means that we need to return to reinvesting in our infrastructure with projects like replacing poles that have far exceeded their life cycle. We also plan to invest in smart technology, like drones, to detect potential issues before they lead to outages.
In 2025, we will conduct a cost-of-service study that will ensure our rate base covers the additional cost of debt [see the explanation on page 6 from Cloverland’s Director of Finance, Jillian King]. It will also determine whether adjustments to our rate structure are needed to ensure sufficient funding for system resiliency. As we’ve done over the past few years, through a pandemic and rapid inflation, we will work closely with your board of directors to assure that any capital expenditures are weighed against the impact on our membership.
As we move forward, our focus remains on delivering safe, reliable, and affordable power to our members. Every decision we make—from infrastructure upgrades to financial planning—is guided by our commitment to serving you and strengthening our cooperative for the future. We appreciate your trust and support as we take these necessary steps to improve reliability and resiliency. Together, we’ll ensure that Cloverland remains a powerful resource for our communities for generations to come