Michigan ratepayers pick up energy tab of 55,732 households

In 2024, thousands of Michigan households — 55,732 in all — struggled to pay their energy bills and received relief through a state requirement that made other customers pay a portion of their bills, according to a document obtained through a records request.

In 2013, Michigan lawmakers created the Low-Income Energy Assistance Fund and charged the state health department with spending money under the Michigan Energy Assistance Act.

Twenty-nine utilities participated in the program, which is funded by a surcharge on monthly bills that can’t exceed $1. The Michigan Public Service Commission approved a $0.88 surcharge for fiscal year 2024 to fund the energy program.

Most of the funds flowed to Wayne, Oakland and Macomb Counties:

2024 MEAP Report to Legislature (1) by mcclallen on Scribd

Michigan households can receive multiple types of government assistance for their energy bills. Self-sufficiency services were extended to 40,644 households in the most recent year for which we have data, with no direct payments recorded, according to the Michigan Energy Assistance Program’s annual report to the Legislature.

Another benefit, the affordable payment plan, was extended to 38,849 households for a total payout of $22 million in 2024, and 16,650 households received $18.3 million in one-time or other assistance.

Michigan’s utilities have received more than $14 billion in subsidies but they still increase their rates CapCon has reported.

The program paid an average of $724 in payment assistance per household in fiscal year 2024, according to the report to the Legislature. Households may receive more than one service from the program. Here’s a breakdown of how many households received various services:

• Needs assessment (includes referrals): 24,699
• Vendor advocacy: 23,851
• Energy education: 27,262
• Financial counseling: 15,286
• Short-term case management: 20,404
• Long-term case management: 4,362

Gov. Gretchen Whitmer’s 2026 budget would fund another $50 million to pay for other people’s energy bills, paid to about 55 electric companies that serve nearly all state residents.

Michigan lawmakers and utilities increase electricity costs through net-zero emission programs, said Jason Hayes, director of energy and environmental policy at the Mackinac Center for Public Policy.

“State-mandated energy assistance programs illustrate classic public choice theory,” Hayes told Michigan Capitol Confidential. “They offer concentrated benefits (for utilities who are making a lot of money on these programs) and diffuse costs (as in, ‘it's only a few bucks a month’ for the average ratepayer). Energy bills have increased significantly over the years. Utilities get permission from state regulators to increase the surcharge. At the same time, they get approval to raise other surcharges for line clearing/tree trimming, distribution charges, energy charges, renewable mandate charges, etc.”

Utilities as well as nonprofits such as the United Way and the Salvation Army administer portions of the heating assistance programs. The report to the Legislature gives information on the assistance some of the organizations provide.

Consumer’s Energy CARE program serves 10,275 households, with 4,262 new families enrolled in fiscal year 2024 for a total of $8.7 million.

DTE Energy’s LSP program serves 15,720 households, with 8,226 new households enrolled in fiscal year 2024 for a total cost of $11.6 million

SEMCO Energy’s assistance program serves 3,751 households, with 2,002 new households enrolled in 2024 for a total cost of just over $1 million.

The EASE program of UPPCO, the Upper Peninsula Power Company, program serves 385 households, with 198 new households enrolled in 2024 for a total cost of $367,889, while the Great Lakes Energy program served 267 households with 73 new enrolled households in 2024 for a total cost of $288,986.