Cloverland Electric Launches American Rural Cooperative Power (ARC Power)

DAFTER, Mich. (November 15, 2021) – Cloverland Electric Cooperative announces the launch of a new generation and transmission (G&T) organization called American Rural Cooperative Power (ARC Power). The primary long-term benefits of ARC Power will be stabilizing power supply costs and managing future rate increases for Cloverland and future members of ARC Power. In the short term, the formation of ARC Power allows Cloverland to manage existing generation while positioning the cooperative to capitalize on additional infrastructure opportunities. With the passing of the federal infrastructure bill, funding is available for renewable development including solar and wind farm projects, and local infrastructure improvements such as broadband, smart grid, and electric vehicle infrastructure.

Additional benefits from ARC Power include managing renewable energy projects from design to completion, transporting energy to provide flexibility and participation on a larger scale, and integrating multiple sources to create a balanced and blended approach to renewables and energy deployment. As a separate non-profit cooperative power supply entity, Cloverland and other future members of ARC Power will have flexibility with all forms of energy production and transport and broadband on a national scale.

“We are excited about our new venture as it allows us to be creative and proactive about the management and stabilization of power supply costs,” said Cloverland’s President and Chief Executive Officer, Michael Heise. “It provides for an opportunity for us to be ‘shovel-ready’ as infrastructure dollars become available.”

ARC Power also captures one of the key objectives of Michigan’s U.P. Energy Task Force encouraging all Upper Peninsula electric providers to participate in a region-wide electric plan. According to the Task Force, this planning effort should encompass all aspects of the U.P.’s electric supply, including forecasting electricity demand, evaluating the U.P.’s generation needs, and assessing grid reliability while mapping utility service territories and identifying opportunities and incentives for collaboration amongst providers.

“Cloverland believes the best way to manage energy needs is through collaboration,” said Heise. “As a result, the cooperative is taking the initiative to move the Task Force’s objective forward with ARC Power.”

The launch of ARC Power provides an entity allowing rapid collaboration among local school districts, tribal entities, investor-owned utilities, other cooperatives, developers, economic development corporations, government, and more.

“ARC Power allows flexibility in the management and improvement or advancement of our generation resources,” said Cloverland’s Director of Generation, Roger Line. “As an energy authority for the Upper Peninsula, ARC Power provides a great resource for long-term generation, and system-reliability planning.”

Cloverland will leverage existing staff and resources for this entity that will be a separate cooperative organization. Cloverland’s management team has the expertise and knowledge to best manage power supply needs to drive economics and sound deployment of energy resources.

There are currently 62 G&T cooperatives across the United States serving 833 distribution cooperatives powering 42 million consumers nationwide. Forming a G&T organization provides Cloverland power supply flexibility to manage its future energy needs. Cloverland Electric’s purchased power contract extends to 2029, but with upcoming availability of federal dollars, the opportunity for funding infrastructure projects is critical within the next two years. The creation of ARC Power allows for greater flexibility incorporating viable long term power supply contracts into Cloverland Electric’s unique energy needs.

Cloverland Electric Cooperative is a not-for-profit, member-owned utility located in Michigan’s Eastern Upper Peninsula. With over 4,000 miles of line and 43,000 meters, Cloverland serves 34,000 residential, commercial and industrial members in Chippewa, Mackinac, Luce, Schoolcraft and Delta counties. Cloverland’s mission is delivering exceptional services through the generation and safe delivery of reliable and affordable energy solutions that encourage growth, foster innovation, and strengthen the communities we serve.

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