MPSC raises funding factor to provide energy assistance for more eligible Michigan households

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More Michigan households will be eligible for expanded energy assistance after the Michigan Public Service Commission today raised the funding factor that pays for the Michigan Energy Assistance Program (MEAP).

The Commission set the Low-Income Energy Assistance Fund (LIEAF) funding factor at $1.50 per electric meter from Sept. 2026 to August 2027 (Case No. U-17377). Each billing meter for customers of participating utilities will be assessed $1.50, limited to one meter per household, with the proceeds funding MEAP energy assistance and self-sufficiency services for income-eligible Michigan households.

The Michigan Legislature and Gov. Gretchen Whitmer approved legislation in 2024 that expanded the income eligibility threshold for Michigan households to receive MEAP support and the amount that may be raised for it each year. The funding factor amount can be raised by 25 cents each year until it reaches the maximum cap of $2 per meter, which may be adjusted to track inflation thereafter.

LIEAF was previously capped at no more than $1 per meter, with a maximum limit of funding of $50 million. The 2024 law eliminated the funding cap and permitted the funding factor to be raised by 25 cents each year until hitting a new maximum of $2, subject to adjustments for inflation.

The increased funding surcharge is expected to raise about $90 million for the year beginning with the September 2026 billing month, estimated to provide energy security for a year for about 90,000 Michigan households. That's up from an average of about 50,000 households yearly before the 2024 MEAP expansion.

Anyone struggling with home energy bills can learn more about financial assistance, payment plans, shutoff protections, tax credits and more at michigan.gov/mpsc/gethelp or at the MPSC's Energy Assistance and Shutoff Protection tip sheet. Or call Michigan 211 for free, confidential help connecting with health and human services agencies and resources in your community.

COMMISSION ISSUES ORDERS ON UPPER MICHIGAN ENERGY RESOURCE CORP. RENEWABLE ENERGY MATTERS

The Commission issued several orders today affecting Upper Michigan Energy Resources Corp. (UMERC). The Commission granted intervention to a major Upper Peninsula mine, Tilden Mining Co., as the MPSC reviews UMERC's amended application for approval of its voluntary green pricing (VGP) program (Case No. U-18356). VGP programs allow customers to voluntarily specify a certain amount of electricity purchases to be from renewable energy resources, with the costs of the program billed only to participating customers. The Commission also converted the case into a contested proceeding and ordered it to be consolidated with UMERC's upcoming renewable energy plan case that the utility must file by Oct. 15, 2026. In a related decision, the MPSC denied a petition for rehearing sought by UMERC of the Commission's Dec. 18, 2025, order rejecting the utility's amended REP (Case No. U-21813). Lastly, the Commission approved UMERC's application requesting ex parte approval for deferred accounting for incremental costs associated with the utility's Renegade Solar project that will not be recovered through its power supply cost recovery mechanism (Case No. U-22035). Renegade Solar is a 100 megawatt solar facility in Delta County that UMERC agreed in its most recent integrated resource plan case to build. In approving the company's request for deferred accounting for the project, the Commission stressed that its approval is limited to the accounting request, and the underlying reasonableness of the costs and their eligibility to be recovered from customers will be reviewed in a future contested proceeding.

COMMISSION APPROVES REHEARING ON CONSUMERS ENERGY'S RENEWABLE ENERGY PLAN

The MPSC granted a limited rehearing of the Commission's order approving Consumers Energy Co.'s renewable energy plan (REP) (Case No. U-21816). The Commission approved Consumers' REP, with changes ultimately accepted by the company, on Sept. 11, 2025. Three intervenors in the Consumers REP case - the Michigan Department of Attorney General, the Great Lakes Renewable Energy Association (GLREA) and, as a group, Michigan Energy Innovation Business Council, Institute for Energy Innovation, and Advanced Energy United, collectively known as MEIU - filed petitions for rehearing. The Commission today granted the rehearing sought by MEIU, reopening the record in the case solely to take evidence on the issue of whether the purchase of renewable energy credits from distributed generation customers comports with Public Act 235 of 2023. Given the approval of the MEIU's petition for rehearing, the Commission denied GLREA's petition as moot and also denied the Attorney General's petition for rehearing. With the record reopened, today's order contains scheduling for testimony, rebuttal, briefs and replies, and a one-day public hearing June 16, 2026.

MPSC APPROVES DTE GAS CO.'S GAS COST RECOVERY PLAN, DIRECTS UTILITY TO EVALUATE ITS GAS PRICE HEDGING PROGRAM

The MPSC approved DTE Gas Co.'s application for approval of its gas cost recovery (GCR) plan for the 12 months ending March 31, 2026. (Case No. U-21608). The Commission also approved the company's 5-year forecast. The approval permits DTE Gas to implement a maximum GCR factor of $3.84 per thousand cubic feet and authorizes the utility to include a supplier of last resort charge of $0.36 per thousand cubic feet for GCR customers and a reservation charge of $0.24 per thousand cubic feet for gas customer choice customers to be reflected in the company's monthly billings. The Commission found DTE Gas' continued use of its gas Volume Cost Average (VCA) Method pricing strategy reasonable and prudent in providing customer price stability. However, the Commission directed DTE Gas to evaluate the VCA's stability benefits and potential alternatives, and to take a close look at whether improvements to better balance the hedging program's costs may be necessary in future GCR proceedings. The Michigan Department of Attorney General and the Retail Energy Supply Association intervened in the matter. MPSC Staff also participated.

MPSC GRANTS PERMANENT BASIC LOCAL EXCHANGE SERVICE LICENSE TO INTERACTIVE SERVICES NETWORK INC.

The Commission granted a permanent license to provide basic local exchange phone service in Michigan to Interactive Services Network Inc. (Case No. U-21952). The Commission granted the company a temporary license Dec. 5, 2025.

The MPSC serves as an expert, impartial regulator committed to consumer protection, fairness and transparency. For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

To look up cases from today's meeting, access the MPSC's E-Dockets filing system.

Watch recordings of the MPSC's meetings on the MPSC's YouTube channel.

DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.

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