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Are we required to refund the energy draft amount to a customer who is currently living out of state?

Are we required to refund the energy draft amount to a customer who is currently living out of state?

No, you are not required to cash the draft for them. Return the draft to the customer. The customer must return the draft, along with a letter requesting a refund, to:

Michigan Department of Treasury
Customer Contact/Energy Draft Processing
P.O. Box 30757
Lansing, MI 48909