BWL & the Michigan Energy Assistance Program

The Michigan Energy Assistance Program (MEAP) was created in 2012 to provide energy assistance to low-income households. The law provided that utilities could surcharge their customers a small amount and use those amounts to fund various agencies who would, in return, provide bill payment assistance to the households. 

 

The statute (Act 615 of 2012) gave the utilities an option : contribute to the program and allow their low-income customers to benefit by tapping the community agencies in their area for financial aid  or agree not to shut-off their customers during the winter. Most utilities chose to contribute to the program but Lansing Board of Water and Light chose to “opt out” of the program and not shut-off their customers during the heating season. They opted out of the program for seven years. Community agencies, including the Capital Area Community Services organization, could not provide assistance during this period, to the detriment of BWL customers.

 

I was appointed to the BWL Board in 2015 as the first member representing East Lansing. As a Commisioner with the Board, I urged BWL to enroll in the MEAP, but I was  unsuccessful. As a non-voting member, I could not make motions to support MEAP enrollment. I resigned from the Board in 2017 because they had refused to opt in to the program. 

 

Finally, in the fall of 2023, after 10 years without participation in MEAP, the Lansing Board of Water and Light agreed to enroll in MEAP. Low-income customers who needed financial assistance during the previous 10 years were deprived of it. Many of them, after the expiration. of the heating period, were shu-toff from service and had to pay reconnection fees in addition t0 the back pay amounts. 

 

By not opting into MEAP for 10 years, BWL experienced high levels of uncollectibles, since the amount of unpaid bills escalated. Uncollectible charges are then passed on to the customer base. Therefore, not opting into MEAP resulted in hardships for low-income customers and higher bills for all other customers, including businesses.