October 29, 2003

The Michigan Public Service Commission today issued an order awarding $13 million in grants to four organizations from the Low-Income and Energy Efficiency Fund.

Governor Jennifer M. Granholm today praised the Michigan Public Service Commission (MPSC) for its expedited approval of the grants.  “With recent increases in natural gas prices, these grants will make available much-needed assistance to people who need help paying their energy bills,” she said.

“I have heard first-hand from people who have received help from these grants, and I know these funds make a real difference for people who need help keeping the heat on during the frigid winter months,” noted J. Peter Lark, MPSC Chair.  “By acting now, these funds will get to the people who need help the most just as we enter the heating months.”

On August 29, 2003, the Commission called for grant proposals to be submitted on or before Oct. 8, 2003. 

The Low-Income and Energy Efficiency Fund, administered by the Commission, was authorized by the Customer Choice and Electricity Reliability Act of 2000.  Its purpose is to provide shut-off and other protection for low-income customers and to promote energy efficiency by all customer classes.  The funds result from securitization savings that exceeded the amount need to achieve a 5 percent rate reduction for residential and business customers.

The Commission received proposals from seven organizations with requests totaling more than $25 million.  In awarding these grants, the Commission gave significant consideration to organizations with a proven record in distributing energy assistance to low-income residents, an existing administrative structure to handle additional distribution activities, and the ability to coordinate assistance with other service providers and serve multiple counties.

Today’s MPSC order approved the following grants:

• $7.5 million to the Family Independence Agency;
• $2 million to the Salvation Army;
• $3 million to The Heat and Warmth Fund (THAW) Safety Net Program; and
• $0.5 million to Newaygo County to assist clients in a 10-county area ineligible for the State Emergency Relief program or for whom such assistance is insufficient or would not be available in time to avert an emergency.

The next step in the grant process is approval by the State Administrative Board.

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

Case No. U-13129

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