The MPSC took its first step toward implementing expanded eligibility for the Michigan Energy Assistance Program (MEAP), which provides crucial home energy assistance to income-eligible households.
The Commission on Feb. 11 kicked off its annual assessment of the funding factor for MEAP, with this year being the first since the program was significantly expanded to make more households eligible for energy assistance and self-sufficiency services (Case No U-17377).
Legislation 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. Legislation signed by Gov. Whitmer raises the per-meter assessment cap to $2 over time. The revamped MEAP also eliminates the total cap on how much annual funding the meter charge can raise.
The Commission set the funding factor for 2025 at $1.25 per meter per month — 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.
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