Michigan PSC adopts funding change to boost low-income energy assistance

The Michigan Public Service Commission on April 17 unanimously approved an order that the commission said will increase funding for the state's low-income energy assistance program to about $90 million for the next fiscal year.

Chair Dan Scripps said the change implements a funding factor for the low-income energy assistance fund and described the shift as a roughly 40% increase over the prior cap of $50 million that existed before reforms enacted in 2024. "This increase is badly needed," Scripps said, adding the order delivers an additional $15 million for the Michigan Energy Assistance Program (MEEP).

The commission's staff attorney, Charlie Kavanagh, summarized the order as vetted by technical and legal staff and ready for approval. Commissioners moved, seconded, and approved the order by voice vote; the vote was unanimous.

The chair framed the decision against the backdrop of rising energy costs and recent federal and regional market changes. He cited a recent U.S. Energy Information Administration survey noting increased household energy insecurity and said the commission is "using the existing statutory framework and a disciplined approach to mitigate some of these challenges." He also highlighted that the commission has restrained bill increases relative to inflation over recent years.

What the order does and next steps: The commission adopted the funding factor proposed in case U-17377 and directed utilities and staff to make the filings and follow-up actions described in the order. Commissioners said they will continue to monitor program effectiveness and other reforms aimed at simplifying and improving assistance to Michiganders who struggle to pay energy bills.

The motion to approve the order was made, seconded, and carried unanimously. The commission did not modify the order on the record and did not record separate dissenting remarks.