Key Point: “A recent decision by President Donald Trump to deny disaster aid to two electric utilities in rural northern Michigan could cost residents tens of millions of dollars. The Oct. 22 denial is a striking example of how Trump’s cuts to disaster aid — and his vow for deeper reductions next year — threaten to shift billions of dollars in costs from federal taxpayers to households struggling to rebuild.”

Politico: Electricity prices jump after Trump rejects disaster aid for Michigan utilities

By Thomas Frank 

• A recent decision by President Donald Trump to deny disaster aid to two electric utilities in rural northern Michigan could cost residents tens of millions of dollars.

• The Oct. 22 denial is a striking example of how Trump’s cuts to disaster aid — and his vow for deeper reductions next year — threaten to shift billions of dollars in costs from federal taxpayers to households struggling to rebuild. In this case, it would hit a working-class region that voted overwhelmingly for the president last year, helping him win the crucial swing state.

• Those households could now face thousands of dollars apiece in rate hikes to make up for the costs of rebuilding their communities’ electric grids after a three-day ice storm in March, utility officials and lawmakers warned.

• “This is something nobody asked for. Our members did not want this ice storm,” Berg said. “FEMA is a federal program designed to ensure when large natural disasters occur, they can come and make the playing field level.”

• Households whose power comes from PIE&G recently started paying a $20 monthly surcharge to cover interest payments on a $150 million line of credit the utility received to replace 2,800 utility poles, 900 transformers and 3,800 miles of power lines after the ice storm.

• Great Lakes Energy, which repaired 4,300 miles of lines and 3,100 poles, increased its monthly rates by an average of $17.

• Northern Michigan has higher-than-average poverty rates and a large number of aging people. Still, “we are resilient. We rely on one another,” said Ingrid Bousho of Onaway after a recent PIE&G community meeting.

• “This area has not asked for a lot of money in the past,” said resident Cheryl Hill, adding that electricity rates are “already high.”

• “We’re not millionaires,” she added.

• “I guess we’re all just hoping the government’s going to come forward and help citizens who are in genuine need,” said Dan Paul, another resident. “We’re just looking to survive.”