ALPENA, Mich. (Michigan News Source) – Alpena Power Company is seeking an exemption from Michigan’s outage credit law after the March northern lower Michigan ice storm that left approximately 300,000 without power statewide, including many in Alpena Power’s service area.

In an effort to mitigate potential future financial losses, the company is citing the late-March ice storm as an “act of God” and has filed a request with the Michigan Public Service Commission (MPSC) to sidestep the $40-a-day credits owed to customers who endured prolonged power outages.

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Alpena Power Company provides electricity to approximately 16,700 customers across northern Michigan, serving areas in Alpena, Presque Isle, Alcona, and Montmorency counties – all of which are covered under a State of Michigan emergency declaration issued by Governor Gretchen Whitmer.

Frozen funds?

Michigan’s outage credit rule is designed to offer some solace to customers who have literally been left in the dark and in the cold due to power outages. Depending on the cause and duration of the outage, customers can receive $40 per day as a modest compensation for their troubles.

In the case of the March ice storm, the 96-hour rule applies, meaning credits should kick in after four days without power. However, Alpena Power’s invocation of an “act of God” aims to nullify this provision.

Alpena Power’s response.

Michigan News Source reached out to Alpena Power Company about the situation and got the following statements in a press release. The company said, “With nearly 40 times more outage minutes than any storm in at least 28 years, the 2025 Northern Michigan ice storm caused catastrophic damages that qualify for an MPSC waiver on bill credits.”

Alpena Power cites “act of God” clause to avoid payouts after devastating storm.

They describe their company as Michigan’s second-smallest investor-owned utility and have requested a “bill credit” waiver under MPSC rules that anticipate an “act of God” which overwhelms best practices in normal times.

Ken Dragiewicz, Alpena Power’s President and COO, said, “This unprecedented ice storm caused extensive damages to the grid that were out of our control and led to a significant financial impact amounting to millions of dollars for our small company. This is why we have formally filed for a waiver of the bill credit at the MPSC, using rules created for just this type of situation.”

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Alpena Power further stated, “After suffering $2.5 million in ice storm repair costs and $350,000 in lost revenue from the outages, the potential of an additional $1.5 million in MPSC-imposed ‘bill credits’ forced Alpena Power to file a request at the MPSC for a waiver on outage bill credits.”