October 26, 2007

The Michigan Public Service Commission (MPSC) today formally adopted the revised rules governing Consumer Standards and Billing Practices for electric and natural gas residential service, significantly improving customer protections. The changes mark the first time in 10 years that the rules have been significantly updated.

"The new rules adopted today substantially help customers by providing more shut-off protections, prohibiting estimated meter reading in most cases, and giving customers more time to pay their bills," noted MPSC Chairman Orjiakor Isiogu.

Highlights of the rule changes include:

• The space-heating season for winter protection was changed from December 1 through March 31 to November 1 through March 31.
  
  
• Utility companies may opt to create an expanded Winter Protection Program in order to serve customers above 150 percent of the federal poverty level.
  
  
• Increased shutoff protection is encouraged by establishing provisions permitting companies to extend shutoff protection programs throughout the entire year for low-income customers.
  
  
• Billing activities were changed, including:
  • Bills can now be transmitted by Internet and fax in addition to mail;
  • The payment period is increased from 17 days to 21 days;
  • Low-income customers of combination companies will have the right to designate how payments will be applied when partial payments are made; and
  • When a utility company overcharges a customer due to a billing error, the customer will receive 7 percent interest on the over-charges.
    
    
• Estimated bills are to be issued only if the utility cannot gain access to the meter and has exhausted all reasonable alternatives to obtain an actual read.
  • Estimated billing procedures for all utilities are to be approved by the Commission;
  • Final bills should be based upon an actual read; and
  • No late fees may be assessed on estimated bills.
    
    
• Customer shutoff protections are provided for military personnel and their families.

• Lowered deposits will be required during the space-heating season.

Today's order formally adopts the revised rules, which were approved by the Legislative Service Bureau and the Office of Regulatory Reform, on Sept. 20 and Sept. 26, respectively. The rules were filed with the Joint Committee on Administrative Rules, which did not object to the rules.

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

Case No. U-14851