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MPSC Adopts Funding Factor for the Low Income Energy Assistance Fund

 

Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission  

 

 

July 29, 2013 - The Michigan Public Service Commission (MPSC) today adopted a funding factor of 99 cents per meter per month for all Michigan electric utilities that have opted to participate in the funding of the Low Income Energy Assistance Fund (LIEAF), effective for the September billing month.

 

Public Act 95 of 2013 created the LIEAF within the State Treasury and authorizes the MPSC to approve a LIEAF funding factor no later than July 31 of each year for the subsequent fiscal year.

 

The funding factor is a non-bypassable surcharge to be added to each retail billing meter (but no more than one residential meter per residential site), payable monthly by every customer receiving retail distribution service from an electric utility, regardless of the identity of the customer's electric generation supplier. The funding factor is to be the same across all customer classes; will appear as a separate line item on each customer's bill; and will not exceed $1.

 

The Act provides that electric utilities may elect not to collect the funding factor by annually filing a notice with the MPSC; however, utilities that do not collect the funding factor shall not shut off service to any residential customer from Nov. 1 to April 15 for nonpayment of a delinquent account.

 

The Act provides that electric utilities may elect not to collect the funding factor by annually filing a notice with the MPSC; however, utilities that do not collect the funding factor shall not shut off service to any residential customer from Nov. 1 to April 15 for nonpayment of a delinquent account.

 

The following Michigan utilities filed notices of intent to participate and included meter counts:

 

Alger Delta Cooperative Electric Association, Bay City Electric Light & Power, Chelsea Electric Department, Cherryland Electric Cooperative, City of Marshall Electric Department, City of Negaunee Electric Department, City of Norway Electric Department, City of Petoskey, City of St. Louis, Consumers Energy Company, DTE Electric Company, Hillsdale Board of Public Works, Indiana Michigan Power Company, Lowell Light and Power, Newberry Water & Light Board, Niles Utility Department, Northern States Power Company, Presque Isle Electric and Gas Co-op, Thumb Electric Cooperative, Union City, Village of Baraga, and Village of Clinton.

 

Today's order directs all utilities that have opted-out of the collection of the surcharge not to shut off service to any residential customer from Nov. 1 through April 15, 2014, for nonpayment of a delinquent account.

 

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

 

Case No. U-17377

 

For more information about LARA, please visit www.michigan.gov/lara.  Follow us on Twitter www.twitter.com/michiganLARA, "Like" us on Facebook or find us on YouTube www.youtube.com/michiganLARA.

 

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