December 20, 2002

The Michigan Public Service Commission today approved a fourth round of grants, totaling $20 million from the Low-Income and Energy Efficiency Fund.  The Customer Choice and Electricity Reliability Act of 2000 authorized the creation of a low-income and energy efficiency fund, administered by the Commission.  The purpose of the fund is to provide shut-off and other protection for low-income customers and to promote energy efficiency by all customer classes.  The fund results from securitization savings that exceeded the amount needed to achieve a 5% rate reduction for residential and business customers.

The Commission received ten proposals with requests totaling more than $39 million.  In awarding these grants, the Commission gave a preference to organizations with a proven record in distributing energy assistance to low-income residents, an existing administrative structure to handle additional distribution activities, an ability to coordinate the provision of assistance with other service providers, and a plan to serve multiple counties or populations of at least 500,000 people.  The order approves the following grants:

  *Family Independence Agency (FIA) - $12 million to provide supplemental payments to households receiving the Home Heating Credit and $1.5 million to expand the State Emergency Fund in cooperation with community action
agencies;

  *Salvation Army - $3 million to serve households statewide ineligible for assistance from FIA or for whom such
assistance is insufficient or not available;

  *MCAAA - $2 million in a direct grant for low-income energy assistance;

  *THAW - $1.5 million for the THAW Safety Net Program.

Today's order follows three previous Commission orders approving grants from the Fund.  On February 21, 2002, the Commission issued an order approving the first round of grants totaling $27.4 million to immediately address the needs of low-income customers during the heating season.  On July 23, 2002, the Commission issued an order approving the second round of grants totaling $12.2 million to develop or improve the quality or application of energy efficient technologies.  On August 20 and September 16, 2002, the Commission awarded more than $5 million for low-income energy efficiency grants.

The MPSC is an agency within the Department of Consumer and Industry Services.


Case No. U-13129 

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