MPSC raises bill credit to $42 for customers experiencing long or repeat outages, raises fines for gas safety standards violations

News media contact: Matt Helms 517-284-8300

Customer Assistance: 800-292-9555

The Michigan Public Service Commission today approved an annual increase to the bill credits customers receive if they experience lengthy or repeat power outages and raised the maximum fines the agency can levy for violations of gas safety standards.

The Commission today raised the bill credit to $42 per day for customers who endure prolonged or frequent power outages (Case No. U-20629), effective Oct. 1. Today's increase means the power outage credit is now 68% higher than it was before the Commission updated the credits in 2023. Before then, customers were eligible only for a one-time $25 credit, and they had to request it from their utility.

The Commission's 2023 updates raised the credit initially to $35 for each day a customer is without power and indexed the credit to the rate of inflation. The Commission also made the power outage credit automatic, so that credits for long-duration or repeat outages now automatically show up on eligible customers' bills. As a result of these changes, utility customers in 2024 received $8,456,093 in outage credits, a sevenfold increase over the $1,213,286 in credits provided to customers in 2022, the last year under the previous rules.

The credits are designed to provide some compensation to customers while also acting as an incentive for utilities to improve reliability and get power outages restored faster.

"While we know that these credits may not fully cover expenses and potential losses when the power goes out, they are an important tool for the MPSC to ensure utilities are doing everything they can to restore power quickly," said MPSC Chair Dan Scripps. "Unlike typical fines, these credits for violations of the Commission's Service Quality rules are paid directly and automatically to those customers who are most directly affected by outages.

The power outage credit kicks in after:

• 96 hours during catastrophic conditions, defined as a utility having 10% or more of its customers without power.
• 48 hours during gray sky conditions affecting between 1% and 10% of a utility's customers.
• 16 hours during normal conditions.

Customers who endure more than 6 sustained power interruptions in one year also are eligible for the outage credit. More information on outage credits is available at the MPSC's consumer tip sheet.

Additionally, the Commission separately raised fines for violations of gas safety standards to adjust for inflation (Case No. U-21961). Public Act 165 of 1969 gives the Commission authority to establish and enforce gas safety standards, and violators are subject to administrative fines of up to $200,000 for each violation for each day that the violation persists, with a maximum fine of $2.5 million for any related series of violations.

With this year's annual adjustment for inflation, the Commission set the new maximum fine of $202,511 for each violation for each day that the violation persists, and a maximum administrative fine of $2,531,383.

MPSC OKS CONSUMERS ENERGY'S AMENDED RENEWABLE ENERGY PLAN, WITH CHANGES

The MPSC approved Consumers Energy Co.'s amended renewable energy plan (REP), with changes, to reflect updates made to Michigan's energy laws in 2023 (Case No U-21816). Public Act 235, part of the 2023 energy law revamp, established a renewable energy standard of 50% by 2030 and 60% by 2035 and required electricity providers to file amended REPs with a forecast of resources needed to meet the new standard. Among other actions, the Commission directed Consumers Energy to speed up its acquisition of new wind energy resources, which could include soliciting power purchase agreements (PPAs) for wind resources located outside of Michigan. In addition, the Commission directed the company to evaluate load-growth scenarios including energy storage and curtailment in its next integrated resource plan; implement a competitive bidding process for wind and energy storage resources and actively solicit third-party PPAs in its future requests for proposals. The Commission also approved incentive renewable energy credits for 2023 but declined to approve the credits for 2024-2025 pending updated information. Consumers has 14 days to file an indication that it consents to the changes in the amended REP, and if the utility doesn't consent, it must file a revised plan by Jan. 12, 2026.

COMMISSION SEEKS COMMENT ON MPSC STAFF'S ENERGY AFFORDABILITY REPORT

The Commission is seeking public comment on a report issued by MPSC Staff as part of its ongoing work to address customer shutoff protections and energy affordability (Case No. U-20757). MPSC Staff filed a comprehensive Energy Affordability Report Sept. 10 outlining the work of the MPSC's Energy and Affordability and Accessibility Collaborative. The Commission seeks comments on Staff's recommendations, specifically for monthly assistance support tailored to household income and usage to support home energy security for income-qualified customers, as well as recommendations regarding affordable payment plans for eligible customers. Comments are due by 5 p.m. Oct. 30, 2025, and may be mailed to Michigan Public Service Commission, Executive Secretary, P.O. Box 30221, Lansing, MI 48909, or emailed to [email protected]. Comments should reference Case No. U-20757.

MPSC REVOKES LICENSES OF 4 TELECOMMUNICATIONS PROVIDERS

The Commission revoked the licenses of several telecommunications providers that appear to be no longer operating in Michigan and have not responded to multiple inquiries from the MPSC (Case No U-21868). The Commission in April commenced license revocation proceedings against four providers of basic local exchange phone service: ComTech 21 LLC; Osirus Communications Inc.; Crystal Automation Systems Inc., doing business as Casair Inc.; and MCC Telephony of the Midwest LLC. MPSC Telecommunications Staff found that the companies haven't met statutory and regulatory responsibilities to maintain a license.

MPSC TO HOLD PUBLIC HEARING, TAKE COMMENT ON CHANGES TO MICHIGAN'S GAS SAFETY RULES

The MPSC is seeking public input on proposed changes to the Michigan rules governing gas safety standards and will hold a public hearing on Oct. 21 to take comments from interested persons and organizations (Case No U-21847). The Commission has been working through the state administrative law process to amend the state's gas safety rules so that they adopt current federal gas safety standards and raise the threshold at which gas operators must report incidents to the Commission, to $25,000 in estimated property damage from the current $10,000. A public hearing on the rule changes will be held Oct. 21, 2025, at 9 a.m. in the MPSC's Lake Michigan conference room, 7109 W. Saginaw Highway, Lansing, Michigan 48917. Written comments also may be submitted, with a deadline of Nov. 4, 2025, by mail to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909, or by e-mail to [email protected]. All comments should reference Case No. U-21847.

For information about the MPSC, visit https://www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter or LinkedIn.

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.

# # #