Michigan Commission Increases Funding for Energy Assistance Program to Reach More Households

The Michigan Public Service Commission on Feb. 11 initiated its annual review of the funding factor for the state’s low-income energy assistance program. This marks the first assessment since the program’s significant expansion, which increased the number of households that qualify for energy assistance and self-sufficiency services.

The commission proposed increasing the funding factor for the state’s low-income energy assistance program to $1.25 per billing meter for 2025, from the current factor of $1. Legislation enacted last year increases the income eligibility threshold to qualify for the program and raises the per-meter assessment to $2 over time. The factor could increase by 25 cents per year until it reaches a maximum of $2 per meter. The reassessment will increase funding for the program and enable more low-income households to benefit.

The commission issued an order directing each electric utility to submit information showing the number of retail billing meters subject to the funding factor, and the total number of retail billing meters for each service region, county, and customer class. This condition applies to every electric utility whether or not they participate in the Michigan Energy Assistance Program, or MEAP. The commission has included participation in the program as a condition in its rate increase approvals of several utilities, such as Upper Michigan Energy Resources Corp.

MEAP receives its funding from the state’s Low-Income Energy Assistance Fund via a per-meter charge assessed on retail electric billing meters. Currently, this monthly charge is $1 per customer, with the total funding capped at $50 million per assessment.

The 2024 law raised the income eligibility margin to expand the reach of MEAP to potentially as many as 335,000 households. Currently, around 50,000 households benefit from MEAP every year. The law expanded income eligibility guidelines for households. Previously, a family of four qualified if their income was up to 150 percent of the federal poverty guideline, equivalent to $46,800. Starting Oct. 1, 2025, that same family will be eligible with an income up to 60 percent of the state’s median income, or $61,861.