LANSING – The MPSC kicked off its annual assessment of the funding factor for Michigan’s low-income energy assistance program, with this year being the first since the program was significantly expanded to make more households eligible for energy assistance and self-sufficiency services.

Legislation approved by the Legislature and signed by Gov. Gretchen Whitmer in 2024 raised the income eligibility threshold for Michigan households to be eligible to receive Michigan Energy Assistance Program (MEAP) support and the amount that may be raised for it. With higher income eligibility, MEAP could provide energy assistance to as many as 335,000 households. MEAP has assisted an average of around 50,000 households per year in recent years.

MEAP is funded through the state’s Low-Income Energy Assistance Fund (LIEAF), through a per-meter charge assessed on retail electric billing meters. Before this year, the maximum that could be assessed per customer was $1 per month, with a cap on total funding raised through the assessment set at $50 million. The legislation signed by Governor Whitmer raises the per-meter assessment to $2 over time. The revamped MEAP also eliminates the total cap on how much annual funding the meter charge can raise.

The Commission today proposed to set the funding factor for 2025 at $1.25 per meter — limited to one meter per residential site — and seeks comment from interested persons and organizations. Under the new law, the amount can be raised by 25 cents each year until it reaches the maximum cap of $2 per meter, which may be adjusted for inflation thereafter.

The assessment applies to all electric utilities in the state, although utilities with fewer than 45,000 residential electric customers may opt out of the program, provided they have an energy assistance program that matches MEAP eligibility requirements for heat and electricity assistance. Customers of opt-out utilities are not eligible for MEAP support.

Eligible household income guidelines were expanded under the new law. Previously, a family of four was eligible if it made up to 150% of the federal poverty guideline, or $46,800. Now, that same family is eligible if it makes 60% of the median state income, or $61,861, beginning Oct. 1, 2025.

The Commission directed each electric utility, whether it will participate in MEAP or opt out, to file information showing the number of retail billing meters it serves in Michigan that are subject to the LIEAF funding factor, the total number of retail billing meters in the utility’s service territory, the total billing meters by county, and the total billing meters by customer class.

Interested persons and organizations may submit written and electronic comments regarding the proposed funding factor. The comments, which should be paginated and reference Case No. U-17377, must be received by 5 p.m. March 4, 2025.  Comments may be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909, or e-mailed to LARA-MPSC-Edockets@michigan.gov.

MPSC APPROVES DTE ELECTRIC CO. SOLAR PROJECT TO PROVIDE ENERGY TO FORD MOTOR CO.

The Commission approved DTE Electric Co.’s application for approval of the utility’s Cold Creek Solar Park Project, through which the utility will provide electricity to Ford Motor Co. through DTE’s voluntary green pricing program, MIGreenPower (Case No U-21285). The approval includes master service agreements with New East Solar Energy (Americas) Inc. for the module supply agreement and Roncelli Inc. for engineering, procurement and construction. The solar project is located in Butler, Quincy, and Coldwater Townships in Branch County and is anticipated to provide 100 MWac of renewable energy capacity, with commercial operation expected in late 2026.

MPSC APPROVES DTM MICHIGAN LATERAL CO.’S APPLICATION FOR RATE INCREASE FOR FIRM TRANSPORTATION SERVICES

The MPSC approved an application from DTM Michigan Lateral Co. (DMLC), formerly known as DTE Michigan Lateral Co., for a rate increase for firm transportation services on the wet header system (Case No U-21525). DMLC sought to recover actually incurred costs of $13,259,559 associated with the pipeline conversion project on its wet header system from gas gathering to a dry gas transmission service. Ultimately, the Commission found that the case was limited to evaluating the reasonableness of DMLC’s contingency costs from a previous case, and that DMLC supported recovery of $5,721,993 in contingency costs reasonably and prudently incurred. The Commission permitted DMLC to charge a transportation rate of $0.2427 per dekatherm for firm transportation services on its wet header system effective as of the date of this order. The Michigan Attorney General’s Office and DTE Gas Co. intervened in the case. MPSC Staff also participated.

COMMISSION APPROVES STEAM SALES CONTRACT BETWEEN DETROIT THERMAL, DETROIT RESIDENTIAL COOPERATIVE HIGH-RISE

The MPSC approved a steam sales agreement special contract between Detroit Thermal and the 1300 Lafayette East Cooperative Inc. in Detroit (Case No U-21850). The 20-year special contract doesn’t impact rates for other customers of Detroit Thermal, which generates steam used primarily for space and hot water heating and absorption cooling of more than 100 buildings in greater downtown Detroit. The 30-story building is in Detroit’s Lafayette Park neighborhood.