In April, Cloverland implemented a planned rate adjustment as part of a careful, multiyear approach to maintaining the strength and reliability of our electric system. For residential members, this includes a 6.5% increase in 2026, followed by the same adjustments in 2027 and 2028. This approach allows us to spread costs over time rather than requiring a larger double-digit increase.
The primary driver behind these changes is the rising cost of power supply, which represents the largest portion of the cooperative’s overall expenses. In addition, the cost of materials, equipment and construction has increased significantly in recent years. Essential infrastructure components—such as poles, wire and substation equipment—are more expensive than ever. These investments are not optional; they are critical to maintaining the safe, reliable electric service our members depend on every day.
In addition to infrastructure upgrades, we have expanded our vegetation management program to further strengthen system reliability. Proactive tree trimming along our power lines helps reduce outages caused by falling limbs and heavy snow loads—an investment that delivers real results. During the March 2026 blizzard, our region experienced continuous snowfall and high winds severe enough to pull plows off the roads. While outages did occur across our service area, the overall impact could have been far worse. Our ongoing system improvements, including enhanced vegetation management, played an important role in limiting damage and supporting restoration efforts.
As the accompanying fuel source chart shows, approximately 45% of Cloverland’s energy supply comes from renewable sources—including our hydroelectric plant, which provides roughly 25%-30% of the energy serving our region. This balanced and cost-effective energy mix helps stabilize power costs and plays an important role in keeping our rates among the lowest in Michigan.
Cloverland is not alone in facing rising costs. Utilities across Michigan have implemented double-digit rate increases in recent years. Even with these adjustments, Cloverland’s rates remain among the lowest in the state and currently the lowest among Michigan’s electric cooperatives.
Our goal is to balance affordability with reliability. By taking a measured, forward-looking approach, we are working to ensure dependable service while keeping rates as stable and manageable as possible for our members.
Visit cloverland.com to learn more about the 2026-28 phased rate adjustment.