On June 11, 2026, the MPSC issued an Order in Case No. U-20757 (See: Issue Brief) establishing a statewide affordability goal: No Michigan residential customer should pay more than 6% of household income on electricity and gas.
The work builds upon years of work through the Energy Affordability and Accessibility Collaborative (EAAC), percent-of-income pilots, and MPSC Staff’s Energy Affordability Report (2025). The order launches a transition from current utility bill credits (RIA and LIA) toward Affordable Payment Plans (APPs) designed to reduce energy burdens and simplify assistance.
The Commission recently spoke about their work on the Energy Burden episode of the Behind the Meter Podcast.
What Are Affordable Payment Plans?
APPs provide monthly bill credits based on income, reducing enrolled customers’ bills to the target 6% energy burden.
Under the new framework:
- Electricity costs are targeted to not more than 4% of income
- Natural gas costs are targeted to not more than 2% of income
- Customers heating with electricity would have a goal of having electric costs not exceed 6% of income
APPs build on the structure of the Michigan Energy Assistance Program (MEAP) and will streamline enrollment for customers.
Current Assistance Programs Serving Income-Qualified Households
Michigan’s energy assistance system includes:
- Residential Income Assistance (RIA) and Low-Income Assistance (LIA) credits offered by many electric and natural gas utilities
- MEAP-funded APPs and crisis assistance for households at or below 60% of state median income
- Federal programs such as LIHEAP, the Home Heating Credit, State Emergency Relief, and Weatherization Assistance
- Recent legislative changes expanded MEAP eligibility and increased program funding, allowing assistance to reach up to 150,000 households per year.
How These Programs Are Helping Today
- 2024–2025: Average payment assistance per MEAP household was $724, funded by a $0.88 per‑meter charge (about 3 cents per day), helping over 55,000 households stay connected.
- 2025–2026: A $1.25 per‑meter charge (about 4 cents per day) will support about 70,000 low‑income households.
- 2026–2027: A $1.50 per‑meter charge (about 5 cents per day) will support about 90,000 households.
- This charge may gradually increase up to $2.00 per month (about 7 cents per day) by 2029 and then indexed to inflation, ensuring expanded access to assistance.
Next Steps
MPSC Staff will convene a workgroup with utilities, state agencies, and community organizations to design the APP implementation plan and associated tariff framework.
A draft will be filed by January 31, 2027, followed by future Commission proceedings to approve updated utility tariffs.
