Coldwater council hears changes to Michigan energy-assistance rules, introduces ordinance to allow limited winter electric disconnections

Coldwater City Council on Oct. 13 heard a detailed presentation on 2025 changes to Michigan's low-income energy assistance framework and voted to introduce an ordinance that would let the city disconnect electric-only customers in winter under specific conditions.

Paul Jakubjak, presenter, told the council the state has set a $1.25-per-meter monthly contribution for this year as part of the Michigan Energy Assistance Program (MEEP). "Currently for this year, it's a dollar 25 per meter per month," Jakubjak said, estimating that approach would generate roughly $112,000 that a utility like Coldwater's CBPU would remit to a state-managed pool.

Jakubjak outlined the opt-out path for utilities serving 45,000 customers or fewer. He said that if Coldwater opts out, the city must show the assistance funds exist in a local budget line and operate a local program; Coldwater plans to partner with Jacobs Well Ministries to perform eligibility screening and to administer payments. Jakubjak said the BPU would pay Jacobs Well a 15% administrative fee of the local pool (about $15,000 on the $112,000 estimate).

Jakubjak warned that money collected under the state's approach would be pooled and administered by Lansing, and "we don't know if all this money would stay here locally in Branch County," adding the state lacks a way to guarantee local retention. He described operational differences between opting in or out and said the CBPU historically used $30,000 to $40,000 per year for energy-assistance payments.

A central policy change in the proposed local rules is the treatment of electric-only customers. Under state law protections many utilities observed, electric service could not be disconnected during certain winter months. Jakubjak said the drafted ordinance (No. 877) would allow Coldwater to disconnect electric meters in winter only when the 24-hour forecasted temperature is above 34'F and the customer does not have city water service (master-metered multiunit or trailer-park customers would remain protected). "We will look at the weather forecast every morning to make that determination," he said.

Council members asked whether gas assistance would be covered and whether the city could charge the $1.25 per meter that the state set. Jakubjak replied the key eligibility hinge is being a BPU electric customer and that the city can either remit the $1.25 per meter to the state (opting in) or run a local program (opting out) and fund it from local reserves or a surcharge. He also noted the state-set fee could rise up to a $2 maximum before CPI-based increases.

Jakubjak asked the council to introduce Ordinance No. 877, which would amend the CBPU rules, rates and regulations to permit the described winter disconnections and to establish the local assistance-flow and documentation requirements. The council moved, seconded and voted to introduce the ordinance by voice vote.

The ordinance introduction will return for further readings and a formal vote at a later meeting; no final decision to opt into or out of the state-managed program was recorded at this meeting.