November | December 2021 Chairperson’s Update

Most co-ops are tasked with only the distribution of electric service, relying on one statewide co-op to supply generation and transmission (G&T) needs. Cloverland Electric Cooperative is unique in that we own and operate a hydroelectric facility that supplies approximately one third of our power needs for our five-county service territory. For the remaining power supply, Cloverland negotiates its own power contracts, which is handled by Michigan’s G&T (Wolverine Power Marketing) for the eight other electric co-ops in Michigan.

In addition to operating our hydroelectric facility and diesels used for peak shaving, Cloverland has power contracts to purchase surplus output of the U.S. Army Corps of Engineers hydro plant at the Soo Locks. The balance our power needs – approximately half of the energy we need – comes from Wisconsin Energy (WEC Group).

Consequently, it was important when searching for a new CEO in 2018 to find one familiar with the operation of generation as well as negotiating power contracts. These skills are not typically required of most co-op CEOs, but whereas Cloverland negotiates our own power contracts, the board prioritized them when selecting Mike Heise to serve as the next as President and CEO of Cloverland Electric in 2019.

We are fortunate to have Mike Heise and his executive management team who are knowledgeable and committed to securing what we must purchase to meet our system demands at the best deal possible, thereby maintaining some of the lowest rates in the state (lowest of the eight co-ops in Mich.).

If you have any questions, you are welcome to reach out to any of your district directors.

-John Sawruk
Chairperson, Cloverland Electric Cooperative Board of Directors