October 18, 2005

The Michigan Public Service Commission (MPSC) today established emergency billing practices, from Nov. 1 through March 31, 2006, for retail customers of electric and gas utilities subject to the Commission's jurisdiction.  The rules now go to Governor Granholm for her concurrence and then will be transmitted to the State Office of Administrative Hearings and Rules and to the Legislative Service Bureau for their approvals.

"With the alarming increases in energy costs since Hurricanes Katrina and Rita, Michigan's electric and natural gas customers face dire circumstances this winter," said MPSC Chairman J. Peter Lark.  "My fellow commissioners and I are greatly concerned about the negative effects these large increases will have on the health, safety and welfare of customers.  The emergency rules we established today will help soften the economic blow that residential and business customers will soon face."

The emergency rules, in place from Nov. 1 through March 31, 2006 call for the following changes:

• The due date for all utility service bills cannot be less than 22 calendar days from the date the bill was transmitted to the customer.  (The current rule is 17 days for residential customers and 21 days for businesses.)

• The utility may not shutoff service or charge a late payment fee for failure to pay an estimated bill by the due date, unless the customer is subsequently delinquent on a bill using an actual read.  (The current rule allows for shutoffs and late payment fees on estimated bills.)

• The required monthly payment for an electric or gas customer pursuant to a settlement agreement cannot exceed $50 plus: the amount of the customer's monthly electric bill; the amount of the customer's gas bill; or for a combined bill, the sum of the monthly electric and natural gas bills.   (The current rule does not contain a cap on settlement agreements.)

• The utility cannot shutoff service to a residential customer who is 65 years of age or older and advises the utility of this, or whose household income does not exceed 200 percent of the poverty level, provided the customer pays a monthly amount equal to 6 percent of the customer's estimated annual bill.  (The current rule is 150 percent of the poverty level and 7 percent of the estimated annual bill, plus a portion of any past due amount.)

• The utility cannot require a deposit from a customer unless that customer has been shutoff for nonpayment during the prior 12 months.  A customer deposit under this rule may not exceed the average monthly bill.   (The current rule allows for deposits for residential customers for 17 different reasons.  The current deposit may be not more than twice the average peak season monthly bill for residential customers.  For businesses, the current rule allows for a three-month deposit and also permits deposits under other conditions.)

The MPSC is an agency within the Department of Labor & Economic Growth.

Case No. U-14668