Michigan PSC Awards $20 Million For Energy Assistance

A very cold winter, a poor economy, cutbacks in the state's budget, the elimination of the Michigan Family Independence Agency's positive billing program (which allowed a portion of welfare recipients benefits to go toward paying energy bills), and an increase in utility service shutoffs convinced the Michigan Public Commission (PSC) to award $20 million of the state's low-income energy efficiency fund (LIEE) for supplemental energy assistance in February.

The PSC issued a February 5 request for proposals, for grants to total $20 million, asking that all proposals be received by February 19. Normally, the request for the submission of grant proposals would not take place until fall of this year. Noting the pressing need for energy assistance in the state, the Commission also announced that it would award the grants by the end of February.

The Commission received proposals from six organizations with requests totaling more than $34 million. In awarding the grants, the Commission gave preference to organizations with a proven record in distributing energy assistance to low-income residents, an existing administrative structure to handle additional distribution activities, an ability to coordinate the assistance with other service providers, and a plan to serve multiple counties or populations with at least 500,000 people.

The order approves the following grants:

Family Independence Agency (FIA) – $17 million to expand the State Emergency Relief Fund
Salvation Army – $1 million to serve households statewide that are ineligible for assistance from FIA or for whom such assistance is insufficient or not available
Michigan Community Action Agency Association – $1 million in a direct grant for low-income energy assistance
The Heat and Warmth Fund (THAW) – $1 million for the THAW Fund.

Michigan's 2000 restructuring law legislation created the LIEE fund that is designed to provide energy payment assistance and fund energy efficiency programs. The payment assistance program is meant to supplement existing energy programs by increasing the level of assistance and serving more clients, including some who are not eligible under current guidelines. Its emphasis is to protect low-income households from utility shut-offs and "the inability to purchase deliverable fuels," according to PSC guidelines.

Visit http://www.ncat.org/liheap/dereg/states/michigan.htm for more information on Michigan's restructuring legislation andfour previous Commission orders approving grants from the LIEE fund.

Page Last Updated: December 7, 2005