News Story

Senate Votes To Maintain Electricity Subsidies

An assessment on residential customers raises $50M a year for low-income households

The Michigan Senate approved Senate Bill 451 last month, which would extend for another four years a law that authorizes a surcharge of up to $1 a month on residential electricity customers. That money is used to subsidize the heating bills of low-income households that are also collecting other social welfare benefits.

The law allows up to $50 million in subsidies each year, and the current residential utility surcharge for this purpose is 91 cents per month. The bill passed unanimously and is now pending before the House. It is one of a number of bills authorizing the continuation of existing fees, passage of which is presumed by the governor’s budget recommendation.