May 2026 Cloverland Connections

cloverland CONNECTIONS A service of Cloverland Electric Cooperative

March May | April June 2023 2026

Sault Ste. MarieLocal Author Snowmobile Publishes Debut Association Novel Set in Meet the organization behind 103 miles of quality snowmobile trails

Familiar Fields

Also Inside: Manager’s Message: Investing in Reliability While Managing Costs

Director Election Candidates

2025 Annual Report

Michigan seasons are unpredictable.

Your comfort and energy bills shouldn't be.

Upgrade your current furnace with a Well-Connect® heat pump and create the most efficient dual-fuel heating and cooling system available.

Unlike an air-source heat pump that uses more energy when it gets colder or hotter outside, a Well-Connect taps into the stable temperature of the earth to deliver consistent performance in every season. Our patented simultaneous operation allows geothermal and your furnace to work together to maximize efficiency, minimize fuel use and keep your home perfectly comfortable.

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No major renovation.

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WELL-CONNECT

EXISTING FURNACE

Stable energy. Predictable costs. Unmatched comfort.

1-833-GEOWELL wellconnectgeo.com MADE

AVA I L A B L E 2026 R E B AT ES • $ 1,0 0 0 Cloverland

IN

• $ 4,0 0 0 or more MiHE R

MI

C

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HI G

AN May | June 2026 CONNECTIONS

cloverland CONNECTIONS

FEATURES:

May | June 2026 VOL. 11, NO. 3 - FINAL MEMBER SERVICE CENTER 2916 W. M-28 Dafter, MI 49724 Hours: Monday-Friday, 8 a.m.-4:30 p.m.

Phone: 906-635-6800 800-562-4953 PUBLISHER: Cloverland Electric Cooperative EDITOR: Allie Brawley, Director of Communications & Member Relations ASSISTANT EDITOR: Abby Moran, Communications Specialist

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CLOVERLAND ELECTRIC 2025 ANNUAL REPORT LOCAL AUTHOR PUBLISHES DEBUT NOVEL SET IN FAMILIAR FIELDS

w: cloverland.com e: connections@cloverland.com DESIGNED BY:

pioneerutilityresources.com Cloverland Connections is published bimonthly with postage paid at Sault Ste. Marie, Michigan.

It is the official publication of Cloverland Electric Cooperative, a not-for-profit, member-owned electric utility established in 1938. POSTMASTER: Send address changes to Cloverland Connections, 725 E. Portage Ave., Sault Ste. Marie, MI 49783.

The appearance of advertising does not constitute an endorsement of products or services advertised.

Cloverland Electric Cooperative is an equal opportunity provider and employer.

ABOUT THE COVER A local voice is making its literary debut. Sara Maurer’s “A Good Animal” draws from the rhythms of rural life near Sault Ste. Marie, exploring how place shapes identity, love and the choices that define us.

Her story captures both the beauty and tension of growing up rooted in familiar fields.

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HEALTHY COMMUNITY ZONES

CLOVERLAND CARES SCHOLARSHIP AWARDS AND ANNUAL REPORT

4 5 6 8 9 10 15 20 22

MANAGER’S MESSAGE | INVESTING IN RELIABILITY WHILE MANAGING COSTS FUEL SOURCE REPORT CHAIRPERSON’S CORNER | YOUR VOICE, YOUR COOPERATIVE SAFETY | TEEN ELECTRICAL SAFETY PHOTO CONTEST | LIFE BY THE WATER ENERGY OPTIMIZATION | HEAT PUMPS 2026 TREE-TRIMMING PLANS CO-OP GOVERNANCE | DIRECTOR CANDIDATES UNDERSTAND YOUR BILL | BUDGET BILLING

Photo by Abby Moran

MEMBERSHIP DISTRICT MAP Printed on paper that is proudly made in Michigan's beautiful Upper Peninsula

Members acknowledge that the electric rates reflected on their bill encompass an annual subscription to Connections magazine with an annual value of $6. To opt-out of the print Connections subscription, please email memberserv@ cloverland.com.

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cloverland CONNECTIONS

Manager’s Message

INVESTING IN RELIABILITY WHILE MANAGING COSTS

BOARD OF DIRECTORS

Email: board@cloverland.com

By Mike Heise, President & CEO

District A

William LaLonde, chairperson 906-298-1406 | St. Ignace Term: 2023-2026

Gerald Nettleton

906-430-0910 | DeTour Village Term: 2024-2027

Jason St. Onge

231-420-0462 | Mackinac Island Term: 2025-2028

District B

John Sawruk, vice chairperson 906-630-1287 | Sault Ste. Marie Term: 2023-2026

Patrick Egan

906-437-5526 | Brimley Term: 2024-2027

Carmine Bonacci Jr., secretary/treasurer

906-440-4063 | Sault Ste. Marie Term: 2025-2028

In April, Cloverland implemented a planned rate adjustment as part of a careful, multiyear approach to maintaining the strength and reliability of our electric system. For residential members, this includes a 6.5% increase in 2026, followed by the same adjustments in 2027 and 2028. This approach allows us to spread costs over time rather than requiring a larger double-digit increase.

The primary driver behind these changes is the rising cost of power supply, which represents the largest portion of the cooperative’s overall expenses. In addition, the cost of materials, equipment and construction has increased significantly in recent years. Essential infrastructure components—such as poles, wire and substation equipment—are more expensive than ever. These investments are not optional; they are critical to maintaining the safe, reliable electric service our members depend on every day.

In addition to infrastructure upgrades, we have expanded our vegetation management program to further strengthen system reliability. Proactive tree trimming along our power lines helps reduce outages caused by falling limbs and heavy snow loads—an investment that delivers real results.

District C

Ronald Provo

906-341-5300 | Manistique Term: 2024-2027

Kevin Vanatta

Select Costs for Providing Re

906-450-4310 | Newberry Term: 2025-2028

PRESIDENT & CEO Mike Heise Residential Transformers

BOARD MEETINGS Visit cloverland.com for the board meeting schedule, agendas, call-in details and past meeting minutes. Cloverland members are welcome to participate in person or by phone.

$1,700-$2,200 each

Substation

$3.5-$4M cost to build with equipment for co-op’s automated meter reading (AMR) system

Tree Trimming $8,400/mile

Honoring Virgil Monroe (1943-2026) of Manistique, who served on Cloverland’s Board of Directors for 15 years (2011-2026).

Lineworker Gear

$6,000

CO-OP

Cloverland Connections magazine 80 cents/issue – ending May 2026

Michigan Country Lines magazine 45 cents/issue – starting July 2026

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January May | February | June 2026 CONNECTIONS

During the March 2026 blizzard, our region experienced continuous snowfall and high winds severe enough to pull plows off the roads. While outages did occur across our service area, the overall impact could have been far worse. Our ongoing system improvements, including enhanced vegetation management, played an important role in limiting damage and supporting restoration efforts.

As the accompanying fuel source chart shows, approximately 45% of Cloverland’s energy supply comes from renewable sources—including our hydroelectric plant, which provides roughly 25%-30% of the energy serving our region. This balanced and cost-effective energy mix helps stabilize power costs and plays an important role in keeping our rates among the lowest in Michigan.

Cloverland is not alone in facing rising costs. Utilities across Michigan have implemented double-digit rate increases in recent years. Even with these adjustments, Cloverland’s rates remain among the lowest in the state and currently the lowest among Michigan’s electric cooperatives.

Our goal is to balance affordability with reliability. By taking a measured, forward-looking approach, we are working to ensure dependable service while keeping rates as stable and manageable as possible for our members.

Visit cloverland.com to learn more about the 2026-28 phased rate adjustment.

eliable Electric Service Bucket Truck and Attachments $400,000-$500,000

Hydro Generator Rewind

$150,000 for a rotating schedule of three turbines per year (currently 74 turbines operating), which last 35+ years

Water for Generation

(monthly average paid to the International Joint Commission)$125,000-$150,000

Residential Meter $300

Fuel Source Report COMPARISON OF THE FUEL SOURCES USED TO GENERATE ELECTRICITY The environmental characteristics of Cloverland’s electricity as required by Public Act 141 of 2000. 100% of Cloverland’s fuel sources are U.S.-based. Cloverland fuel mix data is for the 12-month period ending Dec. 31, 2025. Regional data is the most recent available from the Michigan Public Service Commission (MPSC).

BY THE NUMBERS FUEL CLOVERLAND

REGION

Coal

16.69%

25.85%

Nuclear

17.86%

24.24%

Natural Gas

19.50%

35.96%

Oil

0.0%

0.49%

Diesel

0.73%

0.0%

RENEWABLE FUELS

45.22%

12.81%

Biomass

0.0%

0.25%

Hydro

39.83%

0.659%

Solid Waste Incineration

0.0%

0.13%

Solar / Biofuel

3.87%

4.10%

Wind

1.52%

7.91%

Wood / Other

0.0%

0.43%

AIRBORNE EMISSIONS COMPARISON Cloverland data is for the 12-month period ended on Dec. 31, 2025. The regional average of all generation in Michigan, Illinois, Indiana, Ohio and Wisconsin.

Regional data is the most recent available from MPSC.

EMISSION TYPE CLOVERLAND

REGIONAL

Sulfur Dioxide

0.02

0.56

Carbon Dioxide

535

941

Nitrous Oxides

0.007

0.58

High-Level Nuclear Waste

N/A

0.0006

Methane

0.93

N/A

CO2e

537

N/A

Nitrogen Oxides

0.38

N/A 5

Chairperson’s Corner

YOUR VOICE, YOUR COOPERATIVE collaboration enhances our ability to respond during major outages through mutual aid, ensures our members are represented in legislative discussions that impact energy policy and funding, and provides valuable opportunities for our team to learn from and collaborate with peers across Michigan.

Willie LaLonde

Chairperson, Cloverland Electric Board of Directors

At Cloverland, every decision we make is guided by a simple principle: serving our members with reliability, transparency and long-term value. That means not only investing in our system but also being thoughtful about how we manage costs and strengthen our cooperative for the future.

Earlier this year, Cloverland renewed its partnership with the Michigan Electric Cooperative Association (MECA), reconnecting us with a statewide network of cooperatives working together on shared challenges. This

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One of the practical advantages of this partnership is the opportunity to participate in Michigan Country Lines, a statewide cooperative publication.

By re-joining this publication (starting with the July|August issue), Cloverland will significantly reduce the costs associated with producing and mailing a bi-monthly magazine, while still

delivering meaningful, high-quality local and regional content to our members. You’ll continue to see stories that reflect the communities we serve, along with features on energy and Michigan life and the photo and recipe contests many of you enjoy.

While this transition means some changes, such as moving board meeting minutes to our website, we remain committed to accessibility and transparency. Board meeting minutes are always available at cloverland.com or by contacting our member services team (800-562-4953). As always, our monthly board meetings are open to all members.

Most importantly, your voice remains at the center of everything we do. As a member-owner, you have a direct role in shaping the future of your cooperative—through participation in our director elections, feedback and engagement.

By working together and making thoughtful, strategic decisions, we can continue to deliver reliable service while being good stewards of the resources entrusted to us.

–Willie LaLonde

January May | February | June 2026 CONNECTIONS

Energy Insights

ANNUAL MEETING

OF THE MEMBERS NOTICE

Please be advised that pursuant to Article II, Section I of the Cloverland Electric Cooperative Bylaws, the Annual Meeting of the Members of the Cooperative is called by the secretary of the cooperative. The purpose of the annual meeting is to announce the director election results and to inform members of any other substantive matters. This meeting shall occur Thursday, June 4, 2026, at 6 p.m. at the DreamMakers Theater, Kewadin Casino in Sault Ste Marie.

AGENDA

1. DETERMINATION OF A QUORUM 2. CALL TO ORDER, PLEDGE OF ALLEGIANCE AND WELCOME 3. READING OF MEETING NOTICE 4. READING AND ACTION—2025 ANNUAL MEETING OF THE MEMBERS MINUTES 5. MESSAGE FROM THE CEO 6. UNFINISHED BUSINESS 7. NEW BUSINESS

CAPITAL CREDITS MEMBERS’ ECONOMIC PARTICIPATION FOR 2025 The capital provided by our co-op members is used to make system upgrades and improvements for safe and reliable service. As a not-for-profit electric cooperative, Cloverland allocates any margin (excess revenue) annually to each member’s capital credit account. The amount for each member is based on electricity purchased for the given year. Each year, our board of directors reviews the co-op’s financials. If the co-op is in good financial standing, they vote to retire a portion of the capital credits that were allocated in previous years. Capital credits—cash back over time—are then returned to our members through a general retirement process in August. Your 2025 capital allocation notice will be printed on your June bill. The first line is your allocation of the cooperative’s 2025 margin of $151,540.83. The second line is the cumulative amount of unretired capital credits in your account and represents your ownership share of the cooperative.

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WAYS TO PAY

1. SmartHub 2. Auto Pay 3. Mail 4. Pay-by-phone 844-843-6837 5. Dafter office 6. VanillaDirect Pay stations

IMPORTANT BANK PAY STATION NOTICE:

8. ADJOURNMENT

For members who currently pay their Cloverland bill at a bank, please note that these payments can take 10-14 days to process. To ensure your payments are posted more quickly and efficiently, Cloverland will transition away from bank pay stations effective Aug. 31, 2026.

Date of Notice: April 27, 2026 Carmine Bonacci Jr., Secretary/Treasurer Cloverland Electric Board of Directors

We encourage members to transition to one of our convenient alternative payment options ahead of this date to avoid any delays in processing.

DIRECTOR ELECTION BALLOTS MAILED Board of director election ballots were mailed April 27 and are due by May 29. Candidate profiles are available on cloverland.com and in this issue of Connections magazine. Election results will be announced June 4.

MEMBER SURVEY To assess our service, you may receive a survey by email on May 26. Participants are eligible to win one of five $50 bill credits or a grand prize: Bon Fire Solo Stove. To update the email on your account, contact our member services team: 800-562-4953.

All Cloverland offices will be closed Monday, May 25, in observance of Memorial Day and Friday, July 3, in observance of Independence Day. Line crews will be on call to respond to outages and emergencies.

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ELECTRICAL Safety

CELEBRATING DELYNN PAUL’S 49 YEARS OF SERVICE

After an incredible 49 years of service, Cloverland Electric Cooperative congratulates Accounting Clerk DeLynn Paul on her well-earned retirement.

A lifelong resident of Sault Ste. Marie, DeLynn began her career with Cloverland through Sault Area High School’s job placement program—working afternoons at the co-op while finishing her classes in the mornings.

Upon graduation, she transitioned into a full-time role, beginning a nearly five-decade career defined by dedication and adaptability.

DeLynn’s longevity reflects her loyalty, attention to detail and deep commitment to the cooperative and its members. We thank her for her extraordinary service and wish her all the best in her retirement.

ABOVE: DeLynn Paul reflects on nearly five decades of service while holding the punch cards she once used—just one example of the many technological changes she’s embraced throughout her career at Cloverland.

Teens

DO NOT use generic chargers or cords.

They could overheat or shock or burn you.

DO NOT put

DO NOT use charging

your cell phone under

cell phones or other

your pillow or take it

electrical devices with wet

to bed with you.

or damp hands.

Throughout her career, DeLynn has been responsible for ensuring the accurate entry of data that supports many of Cloverland’s core operations. Her work has touched nearly every corner of the organization, including payroll, accounts payable, work orders, fleet tracking and miscellaneous billing—serving as a steady and reliable foundation behind the scenes.

DeLynn has witnessed remarkable changes in technology and processes, from keypunch machines and handwritten meter readings to today’s automated systems and digital workflows. She also played an important role during the 2010 integration with Edison Sault Electric, supporting the expanded scope of accounting operations that followed.

for

DO NOT bring a charging cell phone or other electrical devices near water, including a bathtub or pool.

If you are in a car accident involving a downed power line, DO NOT get out of the vehicle unless you see smoke or fire.

If you must exit a burning vehicle near or on a downed power line, make a clean exit from the car and land on both feet; then hop with feet together, DO NOT WALK, to safety.

LEFT: DeLynn’s employee badges.

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JanuaryMay | June 2026 CONNECTIONS | February

PHOTO CONTEST

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LIFE BY THE WATER From lakes to rivers winding through, here are the EUP waters dear to you!

To view all entry submissions for our popular Life by the Water photo contest, follow Cloverland’s Facebook page.

Our thanks to members who submitted so many excellent entries!

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1. Perfect day on the St. Marys River!

—Deanna Long, Cedarville 2. Brie and Brae Bogue at the Lower Tahquamenon Falls.

—Donna Bogue, Rudyard

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3. Granddaughters dock fishing on Sturgeon Bay, Drummond Island.

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—Jim Bourcier, Drummond Island 4. The St. Marys River on the north shore of Sugar Island is one of our favorite places.

—Jenny Wagner, Sault Ste. Marie

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5

5. The mouth of the Two Hearted River at dusk.

—Liz Burt, Mackinac Island 6. Catching a Lake Huron sunset with our dogs, Murphy and Rosco.

—Pat Feldhake, Pickford 7. Learning to run a boat on Piatt Lake.

—Paul Wagner, Eckerman 8. Even ballerinas love to fish!

—Julie VanSickle, Manistique 9. Beautiful Les Cheneaux Islands!

—Sue Hamberg, Cedarville

New! Cloverland members can now encourage friends and family to vote for their photos! To submit your photo, visit cloverland.com/ photocontest. Photos printed in Michigan Country Lines are eligible for entry in a $100 bill credit drawing! (One winner selected at the end of 2026.)

July | August Cute Pets—Deadline: May 25 Submit your Cute Pets photos by May 25 for the July | August issue of Michigan Country Lines!

Recipe contest details for Michigan Country Lines (starting with the July|August issue) are available at micoopkitchen.com.

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Is a heat pump right for you?

Did your furnace struggle to keep up with demand this winter?

Are you interested in adding central air conditioning to your home?

Is outdated, inefficient HVAC equipment causing high energy costs?

If you answered “yes” to any of these questions, a heat pump could be right for you!

Heat pumps provide efficient heating and cooling for your home year-round. The technology works similarly to a refrigerator – heat is transferred from one location to another, rather than being generated. In the warmer months, heat is moved from inside to outside, leaving you cool and comfortable in your home. The opposite happens in the winter. Because of the efficient technology used, heat pumps provide significant energy savings over traditional alternatives. As a Cloverland member, you can save on purchase costs with rebates from the Energy Optimization program.

PRODUCT

REBATE

Central Air-Source Heat Pump

Tier 1: $250 Tier 2: $500

Mini/Multi-Split Air-Source Heat Pump

$1,000

Air-to-Water Heat Pump

$500

Ground-Source Heat Pump

$1,000

Desuperheater for Ground-Source Heat Pump

$100

Energy Optimization program rebates are available on a first-come, first-served basis and will end once 2026 funding is fully allocated.

Apply early to ensure rebate availability.

VISIT cloverland.com/eo CALL (877) 296-4319 10

January May | February | June 2026 CONNECTIONS

COMMITTED TO WHAT MATTERS MOST

20 ANNUAL REPORT 25 SUMMARY At Cloverland Electric Cooperative, everything we do is rooted in our commitment to serving our members. 2025 was defined by resilience, progress and continued investment in the cooperative’s future. From responding to major storm events and strengthening system reliability to expanding partnerships that support financial stability, Cloverland remained focused on delivering safe, reliable and affordable energy to the 34,000 members we serve across five counties in the Eastern Upper Peninsula.

Engineering continued critical system investments, including interconnecting new solar generation, upgrading substation monitoring systems, and conducting nearly 7,000 pole inspections to support long-term reliability. At the same time, Cloverland’s power supply and generation teams demonstrated their commitment to affordability by optimizing power supply costs by managing peak demand, which helps maintain stable rates for our members.

Committed to Transparency for Members

Committed to Cooperation Among Cooperatives

In February, Cloverland’s Board of Directors approved a strategic plan that will guide the cooperative through the coming years.

With ongoing changes in industry regulations, technology and economic conditions, the plan provides the flexibility needed to adapt while reinforcing Cloverland’s commitment to delivering reliable, affordable energy to its members. That same commitment extends to transparency. Cloverland members are encouraged to review the strategic plan at cloverland.com/governance. Board meetings are open to members, both in person and via conference call, and meeting minutes are always available online or by calling 800-562-4953.

Cloverland strengthened its cooperative connections by reestablishing its relationship with the Michigan Electric Cooperative Association (MECA). This renewed alignment connects Cloverland to a broader network of Michigan cooperatives, creating opportunities to share knowledge, coordinate resources and address common challenges.

MECA membership ensures Cloverland is better positioned to support reliable service during large-scale outage events, stay engaged in statewide energy discussions and collaborate on solutions that benefit our members and communities.

Committed to Reliability

Cloverland’s commitment to its members begins with its employees.

Throughout the year, the cooperative continued to invest in its workforce through training, development and career advancement opportunities. Through the state of Michigan’s Going Pro Talent Fund, 27 employees received specialized training and certifications that strengthened the cooperative’s technical capabilities. We welcomed eight new employees, celebrated eight internal transfers and promotions, and honored four retirements representing 125 years of service to the cooperative.

March brought a significant ice storm event across our service territory, primarily in Mackinac County. Due to the foresight of Cloverland’s management team, restoration efforts were strengthened by strong preestablished mutual aid partnerships, including historic and unprecedented congressional-approved support from PUC Services Inc. of Ontario, whose crews worked alongside Cloverland’s during the response. Supporting Cloverland’s commitment to reliability, vegetation management remained a key focus, with crews removing more than 500 trees that posed a reliability threat and completing thousands of additional trims, while implementing updated policies, a proactive 300-mile-peryear maintenance cycle, Mike Heise and enhanced planning President & CEO to improve efficiency and reliability.

Committed to the Cloverland Team

Safety remained a central focus across the cooperative. In addition to maintaining an excellent internal safety record, Cloverland continued its commitment to community safety by providing electrical safety demonstrations across its service territory and collaborating with local first responders on emergency response training.

At the heart of Cloverland’s strength is a team of 132 employees who take great pride in serving the cooperative’s member-owners. Whether responding to outages, maintaining infrastructure, supporting operations, managing financial stewardship or assisting members each day, their dedication makes every accomplishment possible. The entire Cloverland team will continue to carry that commitment forward for the benefit of our Eastern Upper Peninsula communities and the members we serve.

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20 25

STATISTICS

Members: 34,333

Miles of Line:

4,082

Capital Credit Allocation: $4,273,550

Employee Count: 132

Meters: 44,098 Islands Served:

58

POWER SUPPLY SOURCES

Counties Served: 5 FUEL SOURCES Diesel .73%

Purchased Power Generated Outside of Cloverland’s EUP Service Area

Locally Generated Power

58.6%

Other Renewables 5.39%

Nuclear 17.86%

Hydro 39.83%

Coal 16.69%

Natural Gas 19.50%

CASH FLOW SUMMARY 2025

2024

$5,974,738

$11,595,594

Net cash used in investing activities

($29,213,017)

($16,936,720)

Net cash used in financing activities

$22,263,236

$6,124,135

Net increase (decrease) in cash and cash equivalents

($975,043)

$783,009

Cash and temporary cash investments

$869,317

$1,844,360

Net cash provided by operating activities

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May | June 2026 CONNECTIONS

board@cloverland.com

OPERATING STATEMENT 2025

2024

99,734,564

91,695,333

511,388

418,864

$100,245,952

$92,114,197

Generating expense

7,711,797

8,501,793

Cost of purchased power

36,948,396

30,324,455

Transmission expense

11,387,246

9,883,487

Distribution operations and maintenance

16,192,581

13,657,478

Consumer expense

4,178,268

3,952,764

Administrative and general expense

7,544,702

6,370,457

Property and other taxes

3,156,449

3,068,437

Interest

5,213,377

4,407,247

Depreciation expense

8,195,820

7,837,563

$100,528,636

$88,003,681

Subtotal - operating margins

-282,684

4,110,516

Non-operating margins

434,225

-68,659

$151,541

$4,041,857

2025

2024

203,297,883

185,096,840

869,317

1,844,360

Other assets and investments

23,073,964

21,006,767

Accounts receivable

13,622,663

13,149,906

Materials and supplies

9,449,621

6,529,381

Other current and non-current assets

6,687,322

7,402,657

Total current and other assets

$53,702,887

$49,933,071

Total Assets

$257,000,770

$235,029,911

Long-term debt

138,645,881

133,412,101

Current and accrued liabilities

42,931,125

25,769,446

547,643

605,040

$182,124,649

$159,786,587

207,410

200,535

74,668,711

75,042,789

Total Equities

$74,876,121

$75,243,324

Total Equities and Liabilities

$257,000,770

$235,029,911

Electric energy revenue Capital credits received from others Total Operating Revenue

Total Operating Expense

Total Margins

BALANCE SHEET Assets Net utility plant Current and non-current assets: Cash and temporary cash investments

Equities and liabilities Current and long-term liabilities:

Non-current liabilities Total Liabilities Equities:

20 BOARD OF 25 DIRECTORS District A William LaLonde, Chair (Term: 2023-2026) 29 S. Marley St., St. Ignace, MI 49781 Gerald Nettleton (Term: 2024-2027) 34882 S. McAdams Road, De Tour Village, MI 49725 Jason St. Onge (Term: 2025-2028) P.O. Box 1496, Mackinac Island, MI 49757

District B John Sawruk, Vice Chair (Term: 2023-2026) 2649 W. 14th St., Sault Ste. Marie, MI 49783 Patrick Egan (Term: 2024-2027) 23806 W. Lakeshore Drive, Brimley, MI 49715 Carmine Bonacci Jr., Secretary/Treasurer (Term: 2025-2028) 3314 S. Sun Glo Drive, Sault Ste. Marie, MI 49783

District C Virgil Monroe (Term: 2023-2026) 603 Oak St., Manistique, MI 49854 Ronald Provo (Term: 2024-2027) 521 N. County Road 441, Manistique, MI 49854 Kevin Vanatta (Term: 2025-2028) 15380 County Road 402, Newberry, MI 49868

Directors’ Compensation Disclosure

Directors do not receive a salary for their service, but by resolution of the board, a fixed sum may be allowed for attendance at cooperative board meetings.

Monthly meeting – Chair Monthly meeting – Director Special meetings

$800 $600 $200

Officer Compensation Disclosure President and CEO $400,000 Statement of Non-Discrimination

Membership fees Margins and other equities

This institution is an equal opportunity provider and employer.

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20 25

STATISTICS

Statistics as of 12/31/25

Mission Statement: Cloverland Electric Cooperative is a not-for-profit, memberowned utility focused on 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.

Management Team

Member Data

Services

44,098

Total memberships

34,333

New memberships

1,499

20.40

Michigan investor-owned utilities

18.68

Cloverland Electric Cooperative

14.37

Chief Operating Officer – Pat Frazier Director of Finance – Jill Tomkinson Director of Operations – Jake Lewis

AVERAGE RESIDENTIAL RATES Other Michigan cooperatives

President and Chief Executive Officer – Mike Heise

Director of Engineering – Brian Lavey *2024 data is shown as the average price in cents per kilowatt-hour from the U.S. Energy Information Administration.

Director of Generation – Roger Line Director of Energy Services – Mark Perman Director of Human Resources – Becky Mills Director of Information Technology – Jim Bennin

SALES

779.9

726.0

million kilowatt-hours

million kilowatt-hours

2025

2024

Director of Business Development and Key Accounts – Jake Brown Director of Communications and Member Relations – Allie Brawley

Independent Auditor Opinion

REVENUE STATISTICS: Revenues

2025

2024

Residential

45%

46%

Large Commercial & Industrial

31%

31%

Small Commercial

22%

22%

Street Lights and other

2%

1%

100%

100%

Cost of Power

$0.542

$0.451

Operations & Maintenance

$0.271

$0.339

Depreciation, Interest & Tax Expense

$0.186

$0.166

Total Margins

$0.002

$0.044

$1.00

$1.00

Total Cost Breakdown for every dollar of Revenue:

Total

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We have audited the accompanying financial statements of Cloverland Electric Cooperative Inc. (a Michigan nonprofit cooperative), which comprise the balance sheets as of Dec. 31, 2025, and 2024, and the related statements of income and comprehensive income, changes in equity and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Cloverland Electric Cooperative Inc. as of Dec. 31, 2025, and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

For the auditor’s full report, please visit cloverland.com/about-us/annual-reports/.

July 2025 CONNECTIONS May | August | June 2026

POWER LINE PRUNING – TRIMMING FOR SAFETY & RELIABILITY 2026 Tree-Trimming Plans Cloverland’s contractors, Chop Tree Service, Wright Tree Service and Davey Tree, will clear rights of way along high-voltage power lines. Cloverland maintains a total of 4,056 miles of line, with approximately 300 miles scheduled for clearance in 2026 across our Eastern Upper Peninsula service territory.

Scheduled work will occur across: District A: Clark, DeTour, Drummond Island, Marquette, Pickford and Raber townships.

District C: Garfield, Hudson, Doyle, Manistique, Hiawatha, Inwood and Thompson townships.

Additional maintenance work may occur across Cloverland’s service territory.

Plant the RIGHT TREE in the RIGHT PLACE The larger the tree, the farther it should be from a power line. Avoid planting beneath power lines, near poles or close to electrical equipment.

Small Trees (up to 25' tall)

Medium Trees (26'-45' tall)

Large Trees (46' and taller)

Our tree trimming process involves two phases to ensure efficient and thorough work.

1. Trimming: The first crew trims the limbs and branches, leaving them in piles.

2. Chipping: The second crew follows to chip the trimmed branches.

There may be a two- to four-week gap between phases, so you may notice branches accumulating during this period. Thank you for your understanding and patience.

Shrubs (up to 15' tall)

15'

Safe clearances are maintained by removing select trees and pruning limbs along power lines. Crews are identified by company logo on their vehicles and identification badges. Contact Cloverland at 800-562-4953 if you are concerned about vegetation in proximity of your service line.

35'

45'

Remember, know what's below by calling 8-1-1 before you dig.

Members affected by 2026 tree trimming plans will be notified in advance by email and automated phone message. Call 800-562-4953 to update your email or phone number to stay informed.

Learn more at:

15

Sara Maurer draws on firsthand experience raising sheep alongside her sister, bringing authenticity and depth to the farm life portrayed in her debut novel, “A Good Animal.”

Photo by Abby Moran

Local Author Publishes Debut Novel Set in Familiar Fields Drawing from her upbringing on a Sault Ste. Marie farm, Sara Maurer weaves a story of family, land and lasting choices in her debut novel, ‘A Good Animal.’

By Allie Brawley

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May | June 2026 CONNECTIONS

“I hadn’t really been writing creatively, but these scenes came to me and I wrote them down,” she says. “And I forgot how good it felt to be writing like that.”

The scenes began to take shape into a broader story and, interestingly, from the perspective of a teenage boy growing up on a farm. Maurer was drawn to exploring emotional growth through a male character navigating relationships, responsibility and the weight of his choices.

Sara Maurer reads from “A Good Animal,” sharing a story shaped by place, family and the lived experiences of growing up on a farm in the Eastern Upper Peninsula.

Photo by Allie Brawley

Sara Maurer’s writing journey began in a Shunk Road farm field in Sault Ste. Marie at just 8 years old—sparked by heartbreak and a notebook.

After showing her beloved bottle calf, Cory, at the county fair, Sara returned home with him—only to have him fall ill shortly after. From a young age, she felt a deep sensitivity to the rhythms of farm life—the quiet bonds formed with animals and the responsibility of their care. When Cory died, the loss was devastating to her. With a notebook in hand, she wandered out into the field of her family farm and wrote a poem she called “Cory’s Song.”

“It was probably the first time that I turned to writing to express what I was feeling,” Sara recalls.

Nearly four decades later, those same feelings of loss, love and connection to the land would help shape the emotional depth of her debut novel, “A Good Animal.”

Maurer’s path to publication was anything but direct. She studied English, worked as a newspaper reporter and later wrote for a construction magazine. After earning a master’s degree in written communications, she built a career in technical writing in corporate banking. Creative writing took a back seat—until she started to invest time in it in 2019.

Set in the farm country outside Sault Ste. Marie, “A Good Animal” centers on Everett Lindt, a young man determined to stay rooted in the land he loves. His hometown dreams are tested when he falls in love with Mary, who dreams of life beyond a small town. The novel captures the tension of choices, family legacy and personal ambition and how one decision can ripple across generations.

Those themes are deeply personal for Maurer.

When the pandemic prompted a reevaluation of priorities, she enrolled in Stanford University’s Continuing Studies novel writing certificate program. With the encouragement of her husband of 23 years, Ryan, and the steady support of her son and daughter, she stepped away from her corporate role to focus on writing.

Connecting with other writers in the program gave her valuable feedback on her writing. By the time she finished the program in June 2022, she had completed her manuscript.

The road to publication required persistence and resilience. Finding an agent took time, but she ultimately connected with one who shared similar small-town roots, 4-H involvement, and an Albion College background, where Maurer also earned her undergraduate degree.

manuscript. In early 2024, her book was finally accepted for publication.

While the novel is fiction, its foundation is unmistakably real.

Seventeen years ago, when Maurer returned home to Sault Ste. Marie, her sister, Deanna Shunk, encouraged her to start a small sheep herd—an experience that became essential research for the book.

“I did experience firsthand what you read in the book,” she says. “Including birth and having to help two of my sheep.”

Her father, Spencer Shunk, also played a role, teaching her the intricacies of hay farming later in life.

“He was excited to tell me about the different types of grass—brome grass and red top clover,” she says. “He is a wealth of knowledge.”

These lived experiences lend authenticity to the novel’s portrayal of rural life: its beauty, its hardships and its deep ties to family and place.

Maurer’s parents, Spencer and Sue, have watched her journey come full circle— from a young girl writing poems in the field to a published author whose work reflects the rhythms of farm life. Her mother recalls the small table and chair set out in the field that she referred to as Sara’s “writing spot.”

Now, that same Shunk Road farm landscape lives on in a different way— woven into the pages of “A Good Animal,” where place is more than a setting. It is identity, tradition and home.

“A Good Animal” can be purchased at major online retailers as well as local book stores.

Learn more at saramaurerwrites.com.

Even with representation, the process continued to test her resolve. Maurer faced multiple rounds of rejection, but each editor’s feedback helped strengthen the

Sara Maurer’s family sits front row at her book launch celebration at Lake Superior State University in Sault Ste. Marie supporting the journey that brought her debut novel, “A Good Animal,” to life.

Photo by Allie Brawley

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HEALTHY COMMUNITY ZONES TEACH IMPORTANCE OF FRESH FOODS, HEALTHY EATING Story and Photography by Neil Moran

Kathryn and Russell Hastings tour the gardens at Gordon’s Produce, gaining a deeper understanding of how locally grown produce contributes to healthy families and communities.

Flair, left, and Rowdy Filipek participate in a hands-on learning experience at Gordon’s Produce. The Healthy Community Zone program helps children discover where their food comes from and how fresh produce supports healthy living.

Last summer, the Chippewa County Health Department launched the Healthy Community Zone, or HCZ, an initiative to encourage people to get outdoors and eat nutritious food. With the help of area farmers, the program is teaching adults and children how to grow, prepare and store fresh produce.

the USDA’s WIC program. Twenty families participated, which included on-site visits to a local farm where fresh foods are abundant, as well as educational videos and other learning opportunities. Leach says she has plans to expand to 60 families this year and the response from last summer is encouraging.

The program is part of a larger Healthy Community Zones initiative funded by the Michigan Department of Health and Human Services. This program invests in community-led solutions to reduce racial health disparities in Chippewa County, Saginaw County and the city of Detroit. Grantees are implementing projects focused on food access, nutrition, physical activity and social cohesion.

“They were super excited to learn,” says Leach, referring to both children and adult participants. “It’s super nice to see the kids involved.”

“Our main goal for the program is to teach people that they can grow their own fruits and vegetables at home and use them in their meals and preserve them,” says Chippewa County Health Department HCZ Grant Coordinator Alexys Leach.

Participants of the program visit working farms where vegetables are being grown for market. Steve and Vicki Gordon, proprietors of Gordon’s Produce, welcomed families to their farm to tour their greenhouse and vegetable gardens.

Steve signed on to the program last spring and has found it to be a rewarding experience to share what can be grown in this area.

Leach says the goal of the grant program is to address the problem of obesity in the county, as identified by the data collected by the health department over the past several years.

Daisy Newhouse explores the greenhouse at Gordon’s Produce, learning firsthand how fruits and vegetables are grown and how gardening can support healthy habits at home.

Last summer, the program was limited to individuals enrolled in

The mission of the HCZ program is to increase awareness of nutritional value, affordability and accessibility of locally grown produce to make healthy eating sustainable and cost-effective for families across the region.

“Families want to do this stuff, but don’t know where to start,” says Gordon. “I like seeing people get excited about gardening and eating fresh produce—that’s the reward.”

Steve Gordon, of Gordon’s Produce, shares insights from his greenhouse with Mary Mattson, of Emergence Collective, during a Healthy Community Zone farm visit. The program connects local growers with community partners to expand access to fresh, locally grown food.

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May | June 2026 CONNECTIONS

2026 CLOVERLAND CARES SCHOLARSHIP RECIPIENTS

Dawson Tominac “I look forward to becoming a part of the workforce and making a difference in my community.”

Educational plans: North Country Electrical Line School—utility technology

The Cloverland Cares board announces five 2026 scholarship recipients. The scholarship is open to high school seniors and members returning to complete a degree, with eligible programs at local community colleges, universities and technical schools.

Applications were evaluated based on essays, school and community involvement, work experience, goals and letters of recommendation.

Each recipient will receive a one-time scholarship. We celebrate their hard work, ambition and determination—congratulations! Full scholarship details are available at cloverland.com/cloverlandcares.

Kadin Kellogg “I plan to attend North Country Lineman School to gain certifications in Class-A CDL, heavy equipment and lineman technician. After completing this schooling, I will join a journeyman apprenticeship program to build my career and gain more knowledge and practice in this trade.”

Educational plans: North Country Electrical Line School—utility technology

Adison Dorman “I aspire to be a surgical oncologist because I want to help people who are in similar situations as my mother. I also want to advocate for women’s health care and breast cancer research.”

Educational plans: Lake Superior State University— biology and premedical

Kaden Wiltfong “Sports have shaped who I am by teaching me discipline, hard work, leadership and how to push through when things get tough. I plan to carry those lessons into my career and use my education to build a future where I can succeed while also working as a lineman, giving back and making a positive impact in my community.”

Educational plans: Alpena Community College— utility technology

Benjamin Smart “When you think of what you want to do in life you often only think of yourself, when in reality at times what needs to be considered is how you can provide for your family and manage to do good while doing so.”

Educational plans: Alpena Community College— utility technology

Cloverland Cares 2025 Annual Report 2024 Ending Balance

$56,577.50

2025 Revenue

Launched in 2020, Cloverland Cares is a nonprofit charitable organization to give back to the Eastern Upper Peninsula communities served by Cloverland Electric Cooperative. Funds generated through Cloverland Cares will be used to support the cooperative’s commitment to our members, through programs such as sponsorships and donations, food banks and scholarships.

Visit Cloverland.com/cloverlandcares to learn more.

Additional Donations | Capital Credits Donations | Cash Register Donations

$1,578.68

Monthly Round Up Contributions January-December 2025

$4,045.97

2025 Expenses Scholarships

$2,750.00

Sponsorships/Donations/Contributions

$1,800.00

Net Contributions Available For 2025 Grants And Scholarships

$57,652.15

Overhead expenses including labor, advertising and legal fees were covered by Cloverland Electric Cooperative.

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2026 Director Candidate Profiles

In Their Own Wor Cloverland Electric Cooperative announces the candidates eligible for election to its board of directors. Ballots were mailed April 27 to members on record as of March 27, and voting ends May 29. Members can vote by mailed ballots or electronic voting. Election results will be presented at the annual meeting of the members Thursday, June 4, and published on cloverland.com. Candidates are presented by membership district in alphabetical order. All biographies and photos were submitted by the candidates. Cloverland does not verify accuracy or artificial intelligence involvement. Candidate biographies are printed verbatim as submitted, in accordance with board policy. These biographies also appear on the ballots.

Ballots were not mailed to Districts A and C since both district candidates are unopposed. Ballots were mailed only to members in District B. The name(s) of those eligible to cast the vote for each membership will be printed on the ballot. As a not-for-profit, democratically controlled utility, Cloverland Electric is governed by a nine-member board. The cooperative’s five-county service area is divided into three membership districts. Each district is represented by three directors elected by the members of the district to serve a threeyear-term. One seat is up for election in each district annually.

DISTRICT A

April 27

Ballots mailed

June 4

Results announced

May 29

Voting ends

John Sawruk To all Cloverland members, it has been my honor to serve as one of your board members. During my time on the board, the board has worked very hard along with all staff to bring you the most reliable and affordable energy system. We have brought our equity up from 17% to over 31%, we have lowered directors pay. We are in the process up upgrading our infrastructure to continue serve all our members the best we can.

I have been a lifelong member of district A. I have been married to my wife Donna for 34 years and I have 3 daughters and 7 grandchildren. Most of my life has been dedicated to community service. I am retired deputy sheriff, I was a member of the fire department for 32 years and I am currently serving as Mayor of St. Ignace.

I am asking for your support in the up coming election, I look forward to continuing to serve all our members and I thank you for your support

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ELECTION SCHEDULE:

DISTRICT B

William LaLonde

William LaLonde

MEMBERSHIP DISTRICT MAP

I’m an advocate for members; always available to listen to members concerns, have assisted many members. When suggestion was made to close tailrace to fishing, I spoke up against it.

Cloverland has the lowest rates of the nine Michigan electric cooperatives.

The board has retained a CEO who has assembled a management team second to none.

Our skilled workers provide great service, excellent restoration during storms.

My 47 years work experience with Edison Sault & Cloverland give me an understanding of the utility business.

I’ve completed NRECA’s director education program and hold the highest level credentials.

I thank you for your continued support to serve as your advocate on the board, and appreciate your vote.

May | June 2026 CONNECTIONS

ords DISTRICT B

Heidi Witucki

Hey there Neighbors! Heidi Witucki here. I'm running for the Cloverland Electric Cooperative Board of Directors.

Those of you who know me well are already aware that I have been attending the Board of Directors' meetings since they were opened in 2019 so that member-owners can attend. Usually, I am the only non-employee member in attendance. I pay close attention to financial issues, and at my request, during the treasurer's report, they give data on how many members are behind on their bills. I use this information to keep track of the financial health of our region—if the numbers are increasing, it gives me a chance to let helping agencies know so they can prepare for more requests for assistance. I also pay close attention to CEC's equity ratio, which was abysmal back in 2019. Anyone with an account is what is called a “Member-Owner”—so every account holder has the right to attend the Board of Director Meetings....and the right to ask questions.

DISTRICT C

John Stapleton

I am seeking election to the Cloverland Electric Cooperative Board of Directors to help ensure affordable, reliable electricity for all member-consumers and to guide the cooperative’s long-term success.

Cloverland is essential to families, farms, and businesses across the Upper Peninsula, and strong, informed governance is critical to keeping rates competitive and the electric grid resilient.

I am a lifelong Upper Peninsula resident and live on a beef cattle farm on the Garden Peninsula with my wife, Kelli, of 30 years. We have two adult daughters and two grandchildren. I am a volunteer firefighter and past fire chief, and I have a long history of community service through local and regional boards supporting agriculture, land stewardship, zoning, conservation, and youth programs. I also currently volunteer at the Upper Peninsula State Fair, where I serve as the Junior Beef Exhibitors’ Representative and on the Building and Grounds Committee.

Professionally, I serve as Director of the Schoolcraft County Transit Authority, with 17 years of executive leadership experience, and as Executive Director of the Delta Area Transit Authority in Escanaba, where I have served for 14 years.

These roles involve oversight of multi-million-dollar budgets, long-term planning, regulatory compliance, and public accountability. I also serve as Vice President of the Michigan Public Transit Association, working with transit systems statewide on policy, funding, and operational best practices, and as Secretary of the Menominee-Delta-Schoolcraft Community Action Agency, which provides essential services to strengthen families and support vulnerable residents across our region.

I understand that Cloverland directors carry serious fiduciary responsibilities. I am committed to affordability, transparency, grid reliability, and ensuring large-load customers pay their fair share. I will bring steady leadership, fiscal discipline, and cooperative values to the board to keep Cloverland reliable, affordable, and accountable to the members it serves.

We are blessed because our Cooperative has, and uses, multiple energy generation sources. This makes us pretty unique. Cloverland Electric Cooperative is facing changing and potentially challenging times. I feel our cooperative should be like us Yoopers—strong, dependable, and affordable We have a good mix of energy generation sources and that makes us distinctive from many other areas around Michigan and the U.S. By shepherding our resources properly and well, our cooperative cooperative is in a good place, and I'd like to keep it that way. Big issues are on the horizon that will impact our cooperative and given all I've learned since I started attending the meetings in 2019, I'd appreciate your support in this election.

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UNDERSTAND YOUR BILL SAMPLE OF AN AVERAGE RESIDENTIAL BILL

1

2 Urgent Notices

Delinquent Notices

3

5 4

7

6

News and Information

8

Credit Card will be charged on xx/xx/xxxx

9

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May | June 2026 CONNECTIONS

BILL DETAILS

CHARGE DETAILS

1. Urgent Notices — Find important account-specific messages requiring your immediate attention.

• Energy Capacity — A required charge that represents the cost to ensure Cloverland has sufficient energy resources available at all times to all members.

2. Delinquent Notices — If an account is past due, an alert message will appear in this area.

• Power Supply Cost Recovery (PSCR) — A fuel-cost adjustment factor used by utilities to reconcile for fluctuations in purchased power costs.

3. Service Description — Your service address appears below your name. If you have multiple accounts, you can add a short description to identify the service location quickly and easily.

• Facility — A set monthly fee to help recover the fixed costs required to generate, transmit and deliver electricity, including poles, wires, substations and property taxes.

4. Usage History — Easily compare your monthly energy use this year to last year using the new graph.

• Energy Optimization (EO) — A surcharge mandated by Michigan Public Act 295 of 2008 to fund energy efficiency incentive-based residential and commercial programs.

5. Billing Summary — This area shows the previous balance, any payments since your last billing and any balances due. A “CR” designation indicates a credit/payment.

• Demand — A charge based on the maximum power requirement recorded by the meter over a specified time frame during the billing period. Applicable to LP and 900-series rates.

6. Current Charges — The current charges are itemized and totaled in this section.

• MI Energy Assistance Fund — A state mandated per meter surcharge that funds the Low-Income Energy Assistance Fund (LIEAF); distributed to local assistance agencies by the State of Michigan to provide low-income eligible members financial support with their electric bills.

7. News and Information — Find important co-op announcements posted in this area.

8. Auto Pay — The date your current charges will be charged or drafted from your designated card or bank account if you are enrolled in our Auto Pay program.

RATES

9. Phone Numbers — Any phone numbers listed on your account will appear on your bill payment stub. Review this area often to ensure we have the most current phone numbers on file. Your phone number is vital for notifying you about planned outages and other service-related matters.

Cloverland Electric is a member-regulated electric utility.

Rates are authorized by the co-op’s board of directors. Rate schedules, explanation of rates and special charges are available upon request or can be viewed on cloverland.com.

10. Back of Bill — The reverse side includes more information about your charges, rates and payment options. We added a new area where you can submit a comment or suggestion.

For more information about Cloverland’s rates, visit cloverland.com or scan the QR code.

High Energy Bills This Winter?

There’s a Better Way to Plan Ahead.

Budget Billing is a convenient payment option that helps level out your energy costs throughout the year—so you’re not hit with higher bills during peak usage seasons.

While Budget Billing doesn’t reduce your overall energy expense, it makes managing your household budget easier by spreading your annual energy costs into consistent monthly payments. That means no more seasonal surprises—just a steady, predictable bill each month.

2026 Budget Billing starts in June. Ready to simplify your payments?

Enroll today by calling our Member Services team at 800-562-4953 Monday-Friday, 8 a.m. to 4:30 p.m.

23

PRSRT STD U.S. POSTAGE PAID SAULT SAINTE MARIE, MI PERMIT NO. 92

725 E. Portage Ave. Sault Ste. Marie, MI 49783

You’re invited to Cloverland Electric Cooperative’s Annual Meeting of the Members.

Cloverland Electric Cooperative welcomes members to its Annual Meeting Thursday, June 4, at 6 p.m. at the DreamMakers Theater, Kewadin Casino, Sault Ste. Marie.

As a member-owner, this is your opportunity to stay informed and engaged!

Cloverland will announce the results of the 2026 Board of Directors election, recognize scholarship recipients, and provide updates on key cooperative matters. Enjoy refreshments while connecting with fellow members and enter for a chance to win raffle prizes!

We look forward to seeing you there!