Low Income Programs and Consumer Protections

1. Low Income Programs and Consumer Protections Energy Regulatory Partnership Program Abuja, Nigeria July 14-18, 2008 Presented by Robert W. Kehres

2. Forms of Assistance and Customer Support • Medical Emergencies • Winter Protection Plan • Low-income Energy Efficiency Fund • Residential Billing Rules • Complaint Process and Settlement Agreements • Toll-free Customer Service Line • Consumer Alerts • Consumer Forums • A vast amount of customer information is available on-line • The Commission must allow anyone to make comments at every Commission meeting

3. Medical Emergencies • R 460.147 – a utility shall postpone the shutoff of service for not more than 21 days if the customer or a member of the customer’s household is suffering a medical emergency. • Shutoff protection may be extended for up to 63 days per household member. • Shutoff protection may not exceed 126 days per year per household.

4. Winter Protection Plan • It gets very cold in Michigan in the winter months. • Residential customers’ spending on heating costs is concentrated in the months of November – March. • The Winter Protection Plan (WPP) is the Commission’s effort to protect low-income and elderly customers from shut-off of service during winter months.

5. Winter Protection Plan • Established by Administrative Rule, R 460.148-149, and by Statute, MCL 460.10t. • Meant to assist those groups of customers who have trouble dealing with increased costs in winter. • Primarily a natural gas issue. • R 460.148 applies to low-income customers. • R 460.149 applies to elderly costomers.

6. R 460.148 Low-income WPP • Eligible low-income customer means a utility customer whose household income is less than 150% of federal poverty guidelines or anyone who receives any of the following: • Supplemental Security income or low-income assistance • Food stamps • Medicaid

7. Low-Income WWP • Does not apply to situations involving unauthorized use. • Applies November 1 to March 31. • Customer must ask for shutoff protection. • Customer must apply for assistance. • Customer must pay 7% of estimated annual bill per month and a portion of an arrearage, if any. • Shutoff protection ceases if customer fails to pay.

8. Senior Citizen WPP • R 460.149 – applies to persons 65 years old or older who informs the utility of his or her eligibility. • An eligible senior citizen’s utility service cannot be terminated during the space heating season. • If shutoff, a utility must reconnect service to an eligible senior without any charges.

9. The Origin of the Low-income Energy Efficiency Fund • Public Acts 141 and 142 of 2000 created the Low-income Energy Efficiency Fund • Act 142 allowed a public utility to securitize certain of its assets. • Excess securitization savings were to fund the LIEEF.

10. Current LIEEF • Now, the Commission adds an amount of LIEEF to a utility’s O&M costs, which is included in all customers rates. • Utilities contribute the proceeds to a state fund. • The Legislature appropriates the funds to the Commission annually. • The Commission disburses the funds by order to grantees.

11. Residential Billing Rules • Definitions • Application for service • Deposits and guarantees • Meter reading • Billing and payment standards • Voluntary termination of service • Utility procedures • Shutoffs and service restorations • Energy assistance and shutoff protections • Disputes and hearings • Commission appeal procedures

12. Complaints and Settlements • Shutoff notice informs customer of right to a hearing and to contact a social services agency to check on eligibility for assistance. • Informal hearing • Mandatory settlement agreements • Informal appeals • Formal complaints

13. Disputes – Informal Hearing • A utility cannot shutoff service if the customer has filed a complaint. R 460.139. • Customer must pay the full amount not in dispute and 50% of the amount in dispute, up to $100. • Utility has burden of proof • Utility hearing officer’s decision may be reviewed by an MPSC regulation officer.

14. Formal Complaints • Follow the procedures set forth in the Rules of Practice and Procedure • Customer files complaint. • Utility files answer • Matter is heard by ALJ, who issues a PFD • Exceptions and Replies to Exceptions • Commission Decision

15. Toll-free customer phone line • Phones are answered by Commission employees who try to resolve disputes • Sometimes, customers are referred directly to the appropriate utility’s customer service departments • Utilities and Commission employees work together to resolve the matter, if possible • If resolution is not possible, customers are informed about how to file a complaint • Commission staff has various pre-drafted complaint forms for use by a customer

16. Consumer Alerts • The Commission staff prepares “Consumer Alerts” • These may be about any energy or utility-related topic, such as projections of future electric and gas prices, availability of propane and gasoline, Winter Protection Plans, etc. • Sent out to assistance agencies, news outlets, and posted to the Commission website.

17. Consumer Forums • Every year the Commission sets up locations across the state for meetings between the Commission, its staff, and the public • Representatives of utilities in the local areas also attend • The public may address the Commission on any issue of concern.

18. Information on the MPSC website • Statutes, administrative rules, case decisions, and docket information on all open and closed cases • Press releases, consumer alerts, staff reports, and MPSC investigations • Complaint forms, instructions, toll-free telephone number, and utility contact info • Utility tariffs, names of alternative suppliers, and pricing information

19. MPSC must allow public comments • By law, the MPSC must reserve some time at the end of every public meeting for members of the public to address the Commission • The Chairman may limit the amount of time that each person may use to make a presentation • The staff is available to follow-up after the meeting.

20. The End