November 8, 2007

The Michigan Public Service Commission (MPSC) today approved a year-round shut-off protection program proposed by The Detroit Edison Company and Michigan Consolidated Gas Company.  The program expands eligibility to low-income customers at or below 200 percent of the federal poverty level, and it permits senior citizens age 62 and above to apply for shut-off protection. 

This program is offered in addition to the Winter Protection Program (WPP), required by Michigan law.  The WPP covers low-income customers at or below 150 percent of the federal poverty level, seniors aged 65 and above, and it is only available from November 1 through March 31.

"My fellow Commissioners and I are pleased that more Detroit Edison and Michigan Consolidated Gas Company customers will be eligible for shut-off protection - not just during the heating season - but all year-round," said MPSC Chairman Orjiakor Isiogu.  "This is especially good news for customers whose higher income levels make them ineligible for the Winter Protection Plan but who still struggle with energy bills.  We encourage anyone who thinks they will have trouble paying their utility bills to contact the utility now to enroll in this new program to prevent utility shut-offs."

Under the approved program, eligible low-income and senior citizens may enroll by paying 10 percent of any balance due at the time of enrollment, and reconnection fees, deposits, and late fees will be waived for customers enrolled in the program and in good standing.  Customers participating in the program will be required to pay a monthly minimum of one-twelfth of any remaining arrearage balance and one-twelfth of the estimated annual bill.  The companies may elect to offer a customer an extended payment plan of up to 24 months for arrearage payment. 

Customers enrolled in the program will not be shut off, provided they do not default.  Customers would default if they fail to make the required down payment or fail to make two monthly payments.  In the event that customers default, service may be shut off, and they may remain liable for the full arrearage balance in addition to a deposit, late fees, and reconnection charges. 

Last month, the MPSC approved revised residential billing rules that permit Michigan utilities to offer, in addition to the required Winter Protection Plan, optional shut-off protection programs that meet or exceed the required eligibility criteria and customer protections.  On Oct. 19, Detroit Edison and Michigan Consolidated Gas Company filed an application requesting Commission approval to offer an optional shut-off program to its customers. 

Interested customers should contact Detroit Edison and/or Michigan Consolidated Gas Company to enroll.

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

Case No. U-15444