October 14, 2003

The Michigan Public Service Commission (MPSC) today issued an order approving $6,797,690 in low-income energy efficiency grants to eight organizations.

"These grants will help reduce energy costs for low-income people just as we enter another heating season," said MPSC Chair J. Peter Lark."The improvements made as a result of these grants will help reduce energy costs for years to come."

The Commission on Aug. 29, 2003 issued a Request for Proposal for low-income energy efficiency grants. Proposals were due by Sept. 24, 2003. In awarding the grants, the Commission gave significant consideration to organizations with previous experience conducting low-income energy efficiency programs with existing administrative structure to handle distribution activities and to organizations capable of offering services statewide. Based on its review, the MPSC awarded the following grants  

• Habitat for Humanity -- $327,200 for energy efficient upgrades to scheduled for homes construction in 2004 for low-income families in Michigan;
• Nova Development Group- Michigan (HEAT) Home Energy Analysis Team – $1.5 million to provide energy conservation improvements and energy education for low-income families living in affordable multi-family housing units;
• Michigan Community Action Agency Association -- $1.5 million to provide weatherization inspections and services, and weatherization and client education programs;
• Metro Neighborhood Housing and Community Development -- $1.5 million for home inspections to demonstrate Energy Star appliances, efficient lighting, construction up-grades and heating/cooling products and to increase low-income homeowners' awareness about energy-wise appliance and lighting usage;
• Community Economic Development Association of Michigan -- $652,000 for education of nonprofit housing managers, financial incentives for nonprofit housing groups to build more efficient homes, pre-certification and certification of new construction to five-star energy ratings, and distribution of homeowner handbooks to occupants of certified homes;
• United Way Community Services/Nonprofit Facilities Center -- $865,000 for energy efficiency audits, energy efficiency/weatherization education, and grants and matching grants to non-profit facilities for energy efficiency upgrades;
• Urban Options, Inc. -- $244,490 for energy education, audits, and low interest loans to homeowners for efficiency upgrades and purchase of Energy Star appliances; and
• WARM Training Center -- $209,000 for energy education to consumers who receive energy assistance.

These grants are part of the Low-Income and Energy Efficiency Fund established as part of the Customer Choice and Electricity Reliability Act of 2000 (Public Act 141). The Act requires a portion of the cost savings from securitization bonds to be used as the capital for the Fund. 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 grants announced today are the latest grants made under this program. Since the program's inception, the following grants were made:

• Feb. 21, 2002 -- $27.4 million in energy assistance grants to seven organizations;
• July 23, 2002, $12.2 million in energy efficiency grants to nine organizations;
• Aug. 20 and Sept. 16, 2002, $5 million in low-income energy efficiency grants to seven organizations;
• Dec. 20, 2002, $20 million in energy assistance grants to four organizations; and
• Feb. 27, 2003, $20 million in emergency energy assistance to four organizations.

The MPSC is an agency within the Department of Consumer and Industry Services.
Case No. U-13129

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