We appreciate the members who attended our April 28, 2026 board meeting and shared their questions. We understand the concerns about data centers, bitcoin mining, and electric rates. The information below provides clear, factual answers based on how electric cooperatives operate under cost-of-service principles and regulatory requirements. Our goal is to ensure all members have consistent, accurate, and accessible information.
See previous FAQs from July 2025 here: https://www.cloverland.com/news-releases/data-mining-faqs/
Will data centers or bitcoin mines raise my electric rates?
No. Cloverland’s most recent cost-of-service study was completed in 2025 by a third party (GDS Associates) that specializes in rate design and structure. This study found that the additional energy sales attributed to data centers and bitcoin mines provided a positive contribution to revenue for the entire membership. Without these additional sales, Cloverland’s overall rate increase could have been significantly higher over the study period.
Do data centers or bitcoin mines get discounted electricity?
No. All members are charged based on cost-of-study service principles aimed at ensuring all rate classes are charged equitably across all membership categories. Different types of members—residential, commercial, and large power—have different rate structures because they use electricity differently. These structures are designed so that each group pays the cost required to serve them. Per our construction policy, members are required to cover the cost of the new infrastructure required to serve them in addition to a deposit to protect the financial interest of other members.
Large power contracts may be negotiated individually due to their scale and unique usage pattern. While structures may differ, large power users pay for what they use and the demands they place on the system. Large power members are never subsidized by residential members.
Some data centers are placed on an interruptible rate, which requires them to significantly reduce or eliminate their power usage during the co-ops monthly peak load (when our collective membership requires the most power). By reducing their energy usage during periods of high energy costs, the cooperative avoids a portion of the peak demand charges, which make up nearly 70% of the co-op’s power supply costs. If a data center does not reduce its usage during these periods, a penalty charge is applied to cover the excess of the demand charges. The interruptible rate ensures data centers pay their fair share of costs.
How much electricity do bitcoin mining operations use?
Bitcoin mining operations use large amounts of electricity. They are placed on interruptible rate structures, meaning Cloverland can reduce or shut off its service during peak demand periods. Since Cloverland cannot control whether a bitcoin mine or other large power member locates in our service territory, this approach ensures essential services are prioritized when demand and power supply costs are highest.
Do these operations strain the electric grid?
Cloverland plans for large energy users in advance and ensures the system has the capacity to serve them. Their usage is managed through rate design and operational controls to maintain reliable service for all members. This involves several studies completed by both Cloverland and our transmission supplier, ATC, to ensure the system can handle large electric loads safely and reliably. Large data centers would be required to pay the full cost of upgrades and often can only locate in areas with significant available capacity.
What about the environmental impact of bitcoin mines and data centers?
Cloverland understands that environmental impact is an important concern for many members. Environmental regulation and permitting are handled at the state and federal levels. Cloverland’s role is to deliver electricity safely and reliably within those regulatory frameworks. While Cloverland has no permitting authority over these impacts, it is important for our members to understand that no data center or bitcoin mine operating in Cloverland’s service territory is connected to a water source for use of any other reason than basic necessities (i.e., bathrooms, drinking water, etc.)
Is Cloverland transparent with its members?
Cloverland is committed to transparency in compliance with legal and privacy requirements. Board meetings are open to all members, and meeting minutes are publicly available. Members can contact their elected district directors at any time. Board member contact details are printed in every bi-monthly magazine and are available on cloverland.com.
Information is shared through Cloverland.com, bi-monthly member emails, social media, and its bi-monthly print issue of the Cloverland Connections (Michigan County Lines) magazine. Printed materials are available upon request at (800) 562-4953.
What is ARC Power, and how is it related to Cloverland?
ARC Power is a separate, member-owned cooperative focused on long-term power supply planning, market participation, and energy risk management. It was formed by its members—including Cloverland —to provide specialized expertise in wholesale power markets and energy operations.
ARC is not a data center, bitcoin mining company, or data center developer. Its role is strictly operational and strategic—supporting utilities and commercial customers like Cloverland in managing power supply, participating in regional markets (such as MISO and PJM), and optimizing costs and reliability for their members.
Through ARC, Cloverland gains access to 24/7 market operations, power supply planning, and tools that help manage price volatility, capacity obligations, and long-term energy needs. This structure allows Cloverland to maintain local control while leveraging broader market expertise, ultimately supporting reliable service and cost stability for its member-owners.
Why do some Cloverland employees also work for ARC Power?
In some cases, co-op employees may provide services to both organizations due to their expertise in power supply planning. These roles follow governance policies, ethical standards, and conflict-of-interest requirements. Oversight is in place to ensure decisions remain in the best interest of Cloverland members.
Will future changes to power supply impact rates?
Cloverland’s current power supply agreement with Wisconsin Energy Corporation runs through mid-2029. Future decisions are made with a focus on reliability and long-term cost management and require planning years in advance, which is why ARC Power was created. ARC will help Cloverland identify the best supply and market paths to ensure the lowest, steadiest rates and supply for members.
Can Cloverland deny service to data centers or other types of businesses?
Cloverland cannot decide which types of businesses choose to locate in its service territory and cannot deny service based on the type of business or public opinion. It has a duty under Michigan law to serve customers who comply with Cloverland’s tariffs, rules, and conditions of service and is unable to reject customers from becoming members of the cooperative. Cloverland abides by the same seven principles as all 900 electric cooperatives across the nation. Principle number one is voluntary and open membership, which means that Cloverland is required to provide service in a fair and non-discriminatory manner to any person or company.
Who decides where bitcoin mines and data center operations can be located?
Local governments, including township and zoning authorities, determine land use and set development requirements. Cloverland does not control zoning decisions.
Can the board avoid using NDAs?
NDAs are a standard part of doing business and help protect all Cloverland members. Without NDA use, some companies may not share information about potential projects, which could limit the cooperative’s ability to evaluate opportunities or negotiate contracts effectively.
Cloverland shares information about large-scale projects with members in board meetings, board meeting minutes, on Cloverland.com and in its bi-monthly member magazine.
Why is the peak demand window 8 a.m. – 9 p.m.?
Cloverland’s peak demand period is based on Cloverland’s current power supply contract with Wisconsin Energy Corporation. Cloverland’s board continues to explore improvements in peak period design, but has limits based on existing contracts. Until that contract ends, it will be unlikely that the peak demand window can be accurately changed.
Members can reduce peak demand charges by:
- Staggering the use of large appliances
- Using delay settings (e.g., running dishwashers after 9 PM)
- Unplugging unused electronics
- Using Cloverland’s Home Energy Usage Tool in SmartHub
What is the Energy Optimization Fee on my bill?
The Michigan Legislature mandated that Cloverland charge that fee in the 2023 Clean Energy & Jobs Act. Michigan law requires Cloverland to fund programs that promote energy efficiency and help reduce overall energy use.
What about a potential power tie line from Canada? Will we be charged with tariffs?
Cloverland does not receive its power from Canada. Cloverland has had preliminary conversations about a transmission connection project, but that is in the early discussion stages. Any tariffs or international pricing would be determined at the federal level. Cloverland will share updates as more information becomes available.
Industrial Members
Cloverland is committed to serving all members fairly and responsibly. Large energy users are required to pay their full cost of service. Cloverland cannot deny service to lawful businesses. Local governments determine where development can occur and set zoning laws. Cloverland’s role is to provide reliable, affordable power for all members while planning responsibly for the future.
Director Elections
Cloverland Electric Cooperative is a member-owned, not-for-profit utility governed by a board of directors elected by its members. Our service area is divided into three districts, each represented by three directors serving staggered three-year terms, with one seat per district up for election each year.
Director elections take place in May, with members able to vote by mail or electronically. Candidate information is shared through Cloverland Connections, our website, and social media, with results announced at the annual meeting in June.
Members interested in running for the board must meet eligibility requirements outlined in the bylaws and submit a nomination petition with at least 25 valid signatures from their district. Petitions and required materials must be submitted by the stated deadline.
Open Board Meetings
Cloverland Electric has held open board meetings since 2018. Public meetings are an important part of how our cooperative stays connected with its members, and we truly value the time and effort it takes to attend and participate. To make sure everyone has a chance to be heard—and that meetings run smoothly—we follow a few basic guidelines rooted in Robert’s Rules of Order common to many boards.
During the public comment portion, members are invited to share their thoughts, concerns, or questions. Comments should be directed to the board as a whole, not to individual members or staff, and should remain respectful and focused on cooperative-related topics. Typically, there is a set 3-minute time limit per speaker so that everyone who wishes to speak has an opportunity.
It’s also helpful to understand the roles in the room. The board of directors is responsible for governance—setting policy, making strategic decisions, and ensuring the long-term health of the cooperative. The board of directors also hires the President and CEO. Members play a vital role by electing directors and providing input, especially during designated times like public comment. However, public comment is generally not a back-and-forth discussion; board members may not respond immediately to each comment, but will take all feedback into consideration.
By following these guidelines, we can ensure meetings remain productive, respectful, and welcoming for everyone involved.
Districts
Cloverland Electric Cooperative generates and delivers safe and reliable electricity at the lowest practical cost to 43,000 meters in Chippewa, Delta, Luce, Mackinac, and Schoolcraft counties. The cooperative’s service area is divided into three membership districts and is grouped by township. We identify them as District A, District B, and District C. The map of Cloverland’s districts is printed in the bi-monthly member magazine and on cloverland.com.
Member Communications
We’re committed to keeping our members informed through a variety of channels, including our bi-monthly magazine, bill messages, SmartHub notifications, social media (primarily Facebook), and email newsletters. To make sure you receive important updates, please keep your contact information—especially your phone number and email address—up to date on your account.
Cloverland encourages members to stay informed and involved by attending board meetings, reviewing meeting minutes (posted on cloverland.com or available by request), and contacting their elected directors with questions. Board member contact details are printed in every bi-monthly magazine and are available on cloverland.com.
Members may request printed copies of board meeting minutes by calling (800) 562-4953.
Member Feedback
Thank you for sharing your concerns regarding the potential impacts of data centers within Cloverland’s service territory. We understand that these developments raise important questions about reliability, costs, and the long-term interests of our membership.
Cloverland takes members’ concerns seriously. Our staff has been actively working with regulatory attorneys to establish the rules and processes—within the scope of what we can control—that are required by law for entities seeking electric service. This work is focused on ensuring that any new large-scale loads of any kind are managed responsibly and in a way that protects our existing members. We remain committed to transparency and will continue to keep our members informed as this process evolves.
In addition, Cloverland has rejoined our statewide association, Michigan Electric Cooperative Association (MECA). Through this partnership, we are leveraging industry expertise and best practices among Michigan cooperatives to help ensure that our policies include appropriate safeguards. Our goal is to eliminate any potential negative impacts on our membership while continuing to meet our legal obligations.