Michigan Utility Restructuring Legislation

Legislation Cite and Date
SB 937 (6/00)
SB 1253 (6/00)
Public Act 141

Low-Income Provisions
The 2000 restructuring law created the low-income energy efficiency (LIEE) fund as part of securitization — bonds that customers pay off on their bills. Savings from securitization were first used to lower rates by five percent; any other savings were mandated for the LIEE fund, which will operate for six years. The LIEE fund is designed to provide low-income energy assistance and energy efficiency as well as energy efficiency programs for all customers. As of February 2004, the LIEE funding was rolled into utility rates as a surcharge.

Low-Income Rate Assistance
Beginning in February 2002, the PSC has periodically awarded energy assistance funds through the competitive bid process to various low-income agencies around the states, including the LIHEAP office.

Low-Income Conservation
Beginning in July 2002, the PSC has periodically awarded energy efficiency funds through the competitive bid process to various low-income agencies around the state.

Annual Funding (2008)
Rate Assistance: $63 million
Conservation: $14.3 million

Funding Mechanism
Savings from securitization through 2003; thereafter through a surcharge to all customer classes of electric and gas utilities.

Administration
Michigan Public Service Commission

Pre-Restructuring Funding
Rate Assistance: $2 million
Conservation: None

Reports, Evaluations
Report on the Low-Income and Energy Efficiency Fund, May 2008, the PSC's annual report on the effectiveness of its low-income fund.

Page Last Updated: September 24, 2009