Michigan PSC approves low-income energy policy summits and pilot program, encourages collaboration on issues
In its latest caseloads and orders, the Michigan Public Service Commission (MPSC) ordered staff to convene up to two energy policy summits for low-income customers this year while encouraging and green lighting steps to address energy affordability and assistance at large.
An important aspect of this includes the extension of the MPSC’s Energy Affordability and Accessibility (EAA) Collaborative for an additional two years. This group helps to address recommendations related to the Commission’s work during the COVID-19 pandemic that continues to disrupt day-to-day life, affordable energy bills, as well as data collection, communication, and engagement issues. Michigan’s utilities will also be required to continue reporting monthly data on shutoffs and customer debts for the foreseeable future. MPSC staff will file a report on the recommendations of the Energy Affordability and Accessibility (EAA) Collaborative to that end by Dec. 16, 2022.
The EAA Collaborative was formed in February 2021 to better understand energy assistance needs and the best ways to provide help. So far, it has launched a public database that updates monthly with utility customer shutoffs and arrearages and created an energy assistance outreach toolkit to help educate and spread awareness of energy assistance programs.
In addition, the MPSC recently encouraged staff to continue collaborating with the Governor’s Poverty Task Force, the Governor’s Council on Climate Solutions, and the Council on Future Mobility and Electrification, to help develop policies across state agencies focused on access and affordability. In turn, the Commission accepted the staff’s recommendation to expand the representation of historically marginalized communities within the EAA Collaborative.
For Consumers Energy specifically, last week, the MPSC approved a two-year pilot program that deals with some of these same issues. The Income Payment Plan (PIPP) pilot program was established to assess the efficacy of the percentage of income-based payment plans compared to existing programs to assist low-income customers in arrears on energy bills. Beginning Oct. 1, 2022, it will offer energy bill assistance and access to programs and education to help participants reduce energy waste and lower monthly bills.
A maximum of 1,500 customers will be eligible to apply, whether they draw natural gas, electricity, or both from Consumers. They will then be placed on a fixed payment plan of approximately 6 percent of gross income, with any difference in monthly bills covered by a PIPP credit and arrears forgiven. It is expected to cost approximately $4.5 million, though this will not affect customer rates.
