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

MPSC approves $20 million for the Low-Income and Energy 
Efficiency Grants 

December 20, 2002

The Michigan Public Service Commission today approved a fourth 
round of grants, totaling $20 million from the Low-Income and 
Energy Efficiency Fund.  The Customer Choice and Electricity 
Reliability Act of 2000 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 results from securitization savings that 
exceeded the amount needed to achieve a 5% rate reduction for 
residential and business customers.

The Commission received ten proposals with requests totaling 
more than $39 million.  In awarding these grants, the Commission 
gave a preference to organizations with a proven record in 
distributing energy assistance to low-income residents, an existing 
administrative structure to handle additional distribution activities, 
an ability to coordinate the provision of assistance with other 
service providers, and a plan to serve multiple counties or 
populations of at least 500,000 people.  The order approves the 
following grants:

  *Family Independence Agency (FIA) - $12 million to provide 
supplemental payments to households receiving the Home 
Heating Credit and $1.5 million to expand the State 
Emergency Fund in cooperation with community action 
  *Salvation Army - $3 million to serve households statewide 
ineligible for assistance from FIA or for whom such 
assistance is insufficient or not available
  *MCAAA - $2 million in a direct grant for low-income energy 
  *THAW - $1.5 million for the THAW Safety Net Program.

Today's order follows three previous Commission orders 
approving grants from the Fund.  On February 21, 2002, the 
Commission issued an order approving the first round of grants 
totaling $27.4 million to immediately address the needs of low-
income customers during the heating season.  On July 23, 2002, 
the Commission issued an order approving the second round of 
grants totaling $12.2 million to develop or improve the quality or 
application of energy efficient technologies.  On August 20 and 
September 16, 2002, the Commission awarded more than $5 
million for low-income energy efficiency grants.

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

Case No. U-13129