MPSC Adopts New 2014-2015 Funding Factor for Low Income Energy Assistance Fund

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

July 22, 2014 - The Michigan Public Service Commission (MPSC) today adopted a funding factor for the Low Income Energy Assistance Fund (LIEAF) of 97 cents per month for the September 2014 through August 2015 billing months for utilities that chose to participate in the funding of the LIEAF. The current funding factor is 99 cents per month. Public Act 95 of 2013 requires the MPSC to calculate a funding factor that will not exceed $50 million.

The MPSC, in conjunction with the Michigan Department of Health & Human Services (DHHS), awards grants from the fund to organizations that assist low-income utility customers.

The MPSC on July 8 opened a public comment period on the proposed funding factor. No comments were received.

The funding factor is based on the number of meters provided by utilities that intend to participate in the program. Utilities that do not participate in the program are prohibited from shutting off service to any residential customers from Nov. 1 to April 15 for nonpayment of a delinquent account. Based on the information filed by the utilities, the Commission calculated a funding factor of 97 cents per meter per month for the coming 2014-2015 fiscal year.

Utilities that filed notice of their intent to participate in the LIEAF are: Northern States Power Company, Alpena Power Company, Consumers Energy Company, DTE Electric Company, Indiana Michigan Power Company, Alger Delta Cooperative Electric Association, Midwest Energy Cooperative, Presque Isle Electric and Gas Co-op, and Thumb Electric Cooperative.

Utilities that filed notice of their intent to opt-out of the LIEAF are: Upper Peninsula Power Company, Wisconsin Public Service Corporation, Wisconsin Electric Power Company, d/b/a We Energies, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, Ontonagon County Rural Electrification Association, HomeWorks Tri-County Electric Cooperative, and Cherryland Electric Cooperative.

The Michigan Municipal Electric Association filed a notice that all of its members will be opting out, with the exception of Village of Baraga, City of Bay City, Village of Clinton, Hillsdale Board of Public Utilities, Lowell Light and Power, Marshall Electric Department, Negaunee Department of Public Works, Newberry Water and Light Board, Niles Utility Department, City of Norway, City of Petoskey, City of St. Louis, and Union City Electric Department.

Case No. U-17377

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

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