Michigan regulators set proposed increase to low-income energy assistance factor, open comment period

The Michigan Public Service Commission on Feb. 11 approved an order to begin implementing 2024 legislative reforms to the state’s low-income energy assistance program and proposed a new funding factor to increase support for households struggling with energy costs.

Commission staff member Holly Velker told commissioners the Michigan Energy Assistance Program provides help with home electricity and heating costs for customers at or below specified income thresholds and that the program is funded through the low-income energy assistance fund (LIIF). Velker said the commission’s order proposes a LI funding factor of $1.25 per meter per month for the billing year Sept. 1, 2025, through Aug. 31, 2026, and opens a public comment window ending 5:00 p.m. Eastern on March 4, 2025.

The commission said legislative changes enacted in 2024 (Public Acts 168, 169, 170 and 198) expand eligibility, alter the mechanics for utilities that opt out of the LIIF charge, and add reporting safeguards intended to prevent overcollection. Velker noted that the LIIF historically collected about $50 million annually; the proposed factor combined with statutory changes is expected to yield roughly $71 million for MEAP assistance in fiscal year 2025–26, a staff estimate the commission described in its remarks.

The order requires electric utilities—investor-owned, municipal and cooperative—that intend to opt out of collecting the LIIF to submit a written notice of intent and detailed meter counts by county and by customer class to the commission by 5:00 p.m. Eastern on April 1, 2025. All electric providers, regardless of opt-in status, must file meter-count information to support the commission’s May 1, 2025 setting of the LI funding factor.

Chair Dan Scripps highlighted the expansion of eligibility in the recent statutes and said commissioners heard testimony from community organizations and program grantees during outreach events. “What struck me most was how often the word ‘dignity’ was used,” Scripps said, describing the reforms as aiming to preserve recipients’ independence and avoid humiliation when seeking assistance.

The commission voted unanimously to approve the order in case U-17377. Stakeholders and members of the public may file comments in the case docket by 5:00 p.m. Eastern on March 4, 2025.