Major utilities participate in Michigan PSC’s annual Low-Income Energy Assistance Fund
More than two dozen utilities, including Northern States Power Co., Consumers Energy Co., DTE Electric Co. and Indiana Michigan Power Co. (I&M), opted into the annual Low-Income Energy Assistance Fund (LIEAF) recently set by the Michigan Public Service Commission’s (MPSC).
The funding factor for the home energy assistance program was set at 91 cents and will, according to the MPSC, provide up to $50 million in assistance for vulnerable households. At 91 cents, the funding factor is one cent lower than in 2019. The charge will take effect in September. The rate is never allowed to exceed $1 per meter or more than one meter per residential customer.
Those organizations that opted out of collecting the funding factor will be unable to shut off service to any residential customer between November 1 and April 15 for nonpayment. Any assistance funds generated from a specific area will also have to be returned to the same area, where possible.
Last week the MPSC also approved a series of renewable energy contracts for the state. Consumers were the largest beneficiary. It was approved for a series of solar, landfill and hydro-centric power purchase agreements (PPAs).
The hydro efforts will see costs cut by nearly $2.6 million over the life of the contracts and, in the case of the Cascade and Fallasburg hydro plants, bring net savings to customers of around $950,000 over 20 years. The solar agreements, which were reached with Durban Solar, LLC, Esmarelda Solar, LLC, and Shady Solar, LLC, will also last 20 years and generate 30 MW. Those projects should cost almost $72 million. Amendments were also made to existing landfill renewable energy purchase agreements that will increase rates for customers enrolled in Consumers’ voluntary Renewable Resource Program, reduce its renewable energy credit purchase obligation and likewise reduce both costs and performance requirements.
I&M also benefited from an amended renewable energy plan, which will now incorporate the 20 MW South Bend Solar Project in Indiana. That amendment will see Michigan’s jurisdictional share account for 3 MW, with operations expected to begin by April 2021.
