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Coldwater utility to opt out of state energy-assistance pool, hires Jacobs Well to administer local aid
Summary
The board approved an opt-out from Michigan's state-run utility assistance surcharge, authorized Agreement 2532 with Jacobs Well Ministries as third-party implementer, and directed submission of an ordinance change to city council; the opt-out would preserve local control but requires roughly $112,000 budgeted to cover assistance.
The Coldwater Board of Public Utilities voted Oct. 1 to proceed with an opt-out from Michigan’s state-managed energy assistance surcharge and to contract with Jacobs Well Ministries to administer a locally run program.
Stacy Russell, the utility’s customer service manager, told the board that under new state rules utilities with fewer than 45,000 residential customers may opt out of the state program if they can demonstrate comparable local assistance. "To opt out, we would have to show that we have approximately a 112,000 in our budget," Russell said, and added that a local opt-out means the utility would not be eligible for state MEEP funds.
Under the proposed arrangement, Jacobs Well would serve as a third-party implementer, handling annual reports to the Public Service Commission and determining aid eligibility. Russell said Jacobs Well could approve up to a $500 cap per fiscal year for an eligible customer and would assess a 15% administration fee; unused funds would roll over into the following year.
Russell explained operational implications for residents: opting out would allow the utility to disconnect electric service for all-electric customers between Nov. 1 and April 15 (subject to a weather protection to avoid disconnections if the 24-hour forecast falls below 34°F), and would also affect customers in master-meter apartments and trailer parks. "This just gives us another tool in our tool box to be able to collect money past due," a senior staff member said during discussion.
Board members discussed the rationale for opting out—chiefly local control over funds and uncertainty whether state-collected surcharges would return to the region. Staff said Coldwater historically provided about $40,000–$60,000 per year in local assistance and that the opt-out arrangement could save roughly $50,000 compared with the $112,000 payout required for the state program depending on use.
The board approved staff’s request: authorize Agreement 2532 with Jacobs Well Ministries as the third-party implementer and submit ordinance change No. 877 to city council for introduction and adoption. If all governing boards approve, staff said implementation and the authority to begin disconnecting qualifying accounts could begin in mid-November.
The board also directed staff to advertise the program and educate customer-service staff so residents know where and how to apply for aid.
