Laura Chappelle, Chairman Mary Jo Kunkle
David A. Svanda 517-241-3323
Robert B. Nelson

     LANSING December 21, 2001.  The Michigan Public Service Commission today 
released the Request for Proposal (RFP) for Low-Income Energy Assistance Grants.  
These grants are part of the Low-Income and Energy Efficiency Fund established 
as part of the Customer Choice and Electricity Reliability Act.  The Act requires 
a portion of the cost savings from the issuance of Detroit Edison's securitization 
bonds to be used as the capital for the Fund.  The purpose of the Fund is to 
provide shut-off and other protection for low-income customers and to promote 
energy efficiency by all customer classes.  The purpose of the RFP issued today 
is to obtain proposals from non-profit and public organizations on the means by 
which they will provide assistance to Michigan's low-income residential customers 
in paying household energy bills.  One or more grants totaling $15 million may be 
awarded for a period through September 2002. 

     The Commission held a public hearing and accepted written comments regarding 
the process for administering the fund on October 11 and 12, 2001, respectively.  
On November 20, 2001, the Commission issued an order stating that is would work 
with Staff to prepare an RFP limited in scope to the design of specific objectives 
and funding priorities for the low-income assistance portion of the fund, and that 
energy efficiency programs would be handled in one or more separate RFPs in 2002.  
On December 11, 2001, the Commission requested specific comments on whether the 
requirements in the RFP were reasonable and not burdensome to potential applicants.  
All comments received were considered in preparation of the finalized RFP issued 

     The RFP is available on the Commission's website, .  Proposals must 
reference Case No. U-13129 and must be received by the Commission by 5:00 PM 
Wednesday, January 16, 2002 at the following address: 

                  Michigan Public Service Commission
                  Executive Secretary
                  P.O. Box 30221
                  Lansing, Michigan 48909

     The Commission anticipates announcing the grant awards early in 2002.

     The Michigan Public Service Commission is an agency within the Department 
of Consumer and Industry Services.

Case No. U-13129
December 20, 2001
(Low-income Energy Assistance Grants)