By Pat Frazier, Chief Operating Officer
Cloverland Electric Cooperative continues to take a proactive approach to meeting evolving energy standards—both at the state and federal levels. Michigan’s Public Act 235 (PA 235), which became law in 2024, sets a clear path for utilities to increase the percentage of renewable energy in their supply mix over the coming years. The current milestone requires 15% renewable energy, increasing to 50% by 2030 and 60% by 2035. While these targets present challenges, they also create new opportunities for innovation.
To stay ahead of these requirements, Cloverland recently secured transmission rights that open the door for a large-scale solar project in our Eastern Upper Peninsula service area. This project is strategically timed with the expiration of our long-term power supply agreement with Wisconsin Energy Corporation (WEC) in spring 2029. The solar generation will help replace a portion of the energy currently sourced through WEC, positioning us to meet state mandates while ensuring reliable, affordable power for our members.
With our current tax structure, the cost of this solar project is comparable to market energy rates. We’re also closely monitoring federal developments, including potential tax incentives, that could further offset costs and benefit our membership in the long term.
The Eastern Upper Peninsula offers an excellent environment for solar generation. Cooler temperatures actually improve solar panel efficiency, and reflective snowfall can enhance solar performance. These geographic advantages make our region a smart location for solar investment.
In a related initiative, Cloverland currently purchases power and energy from a solar farm in Pickford under a long-term agreement. While our current contract with WEC prevents us from using that energy directly until 2029, we are selling it into the wholesale electricity market. Thanks to our experienced power supply team, we’re generating positive revenues from these sales—helping to stabilize member rates in a volatile market.
As the regulatory landscape shifts, Cloverland remains committed to managing change with strategy and foresight—balancing compliance with innovation to best serve our 34,000 members.