LANSING, October 2.  On September 28, 2001, Governor John Engler signed the 2001-2002 
Department of Consumer and Industry Services fiscal year appropriations bill which included a provision 
authorizing the Michigan Public Service Commission to begin making distributions from the Low-Income and 
Energy Efficiency Fund of up to $60 million annually, for a period of 6 years.   The Commission today 
announced that it will hold a public hearing on Thursday October 11, 2001 at 2:00 p.m. at the 
Commission's office, 6545 Mercantile Way, Lansing to solicit public comments on establishing a process 
for the administration and operation of the Fund.  The public hearing will be legislative in nature and provide 
an opportunity for any interested person to present data, views, questions and arguments on the proposed 
process, which includes the grant procedures and the allocation of disbursements from the fund.  Additionally, 
the Commission is interested in suggestions on the degree to which available funds should be divided between 
support for current projects and investment for supporting future projects.  Written comments may be 
submitted to the Commission by Friday, October 12, 2001.
On June 5, 2000, Governor Engler signed Public Act 141 which, in part, authorized the creation of a 
low-income and energy efficiency fund, administered by the Commission.  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 fund would result from securitization savings that exceeded the amount needed to 
achieve a 5% rate reduction for all electric customers.  In November 2000, the MPSC authorized The Detroit 
Edison Company to securitize up to $1.7 billion.  Under securitization, Detroit Edison was allowed to 
refinance some of its most expensive debt and equity with less expensive debt and equity.  Savings occurring 
as a result of securitization was used first to cover the 5% rate reduction for its electric customers, with the 
remaining savings, up to 2% of the electric utility's commercial and industrial revenues, allocated to the Low-
Income and Energy Efficiency Fund.

"We are pleased to see that up to $60 million will be available annually to provide support and 
assistance for qualifying low-income customers and energy efficiency projects," said Chairman Laura 
Chappelle.    "We are eager to move forward quickly to establish a process that will assist the Commission in 
its operation and administration of the Fund." 

The MPSC is an agency within the Department of Consumer and Industry Services.

Case No.  U-13129
October 2, 2001
(Low-income energy efficiency fund)