The Coldwater Board of Public Utilities voted to opt out of Public Act 95 for the FY 2025–26 plan year, meaning the utility will not collect the $1.25-per-meter surcharge the state authorizes and will instead fund local low-income assistance from its budget.

The board took the vote after a presentation from the utility director explaining the program. "If you remember Public Act 95 or PA 95 went into law in 2013 as a funding mechanism for low income energy assistance to customers," the director told the board, noting the statute now allows a surcharge of up to $2 and that this year the state set the level at $1.25 per meter. The director said that opting into the program would have meant the utility collecting roughly $112,000 and sending the money to a state-administered pool that could be reallocated across Michigan.

The director said the utility has recommended opting out and instead budgeting a line item of $112,000 to support local assistance and continuing to coordinate with a local charity and state programs for eligibility and administration. He described operational obligations for utilities that choose to participate, including demonstrating available funds, maintaining a customer-assistance plan, conducting customer outreach, and completing annual reports to the Public Service Commission.

Board procedure followed with a motion to opt out, a second, and a voice vote in which the chair called the motion passed. The director noted the budgeted $112,000 figure and said the utility's net write-offs were $31,000 last year and $25,000 through April this year. He also warned that under the local-implementation approach the utility would regain the ability to disconnect service under its own criteria and that the board must notify the Public Service Commission by July 1 whether it opts in or out.

Board members asked clarifying questions during the discussion; the director said staff will present more details later this year about how the local assistance program would be implemented and how the utility will communicate availability to customers.

The vote leaves Coldwater operating a locally administered assistance program funded from its budget rather than participating in the state-managed surcharge pool. The board directed staff to proceed with the opt-out for the FY 2025–26 plan year and to prepare public information and implementation steps for future meetings.