LOW INCOME ENERGY ASSISTANCE S.B. 880:
SUMMARY OF INTRODUCED BILL
IN COMMITTEE
Senate Bill 880 (as introduced 5-22-24)
Sponsor: Senator Sam Singh
Committee: Energy and Environment
Date Completed: 6-5-24
CONTENT
The bill would amend Public Act 3 of 1939, the Public Service Commission law, to
do the following:
-- Allow the Michigan Public Service Commission (MPSC) to increase the Low-
income Energy Assistance Fund's funding factor from a maximum of $1 to $2.
-- Delete a provision allowing an electric utility to opt-out of collecting a low-
income energy assistance funding factor.
Section 9t of the Act creates the Low-income Energy Assistance Fund within the State
Treasury to provide energy assistance for low-income households. The Department of Health
and Human Services, in consultation with the MPSC, must ensure that all money collected for
the Fund from a geographic area is returned, to the extent possible, to that geographic area.
Under the Act, the MPSC may, after an opportunity to comment, annually approve a low-
income energy assistance funding factor no later than July 31 of each year for the subsequent
fiscal year. The low-income energy assistance funding factor must be the same across all
customer classes and cannot exceed $1. The amount used by the MPSC to calculate a low-
income energy assistance funding factor during each fiscal year may not exceed $50.0 million
minus the amount appropriated from the General Fund in that fiscal year for home energy
assistance and the amount remaining in the Low-income Energy Assistance Fund from the
prior fiscal year. An electric utility, municipally owned electric utility, or cooperative electric
utility that collects money under the Act must remit that money to the State Treasurer for
deposit in the Fund on a monthly basis within 30 days after the last day in each calendar
month. The electric utility, municipally owned electric utility, or cooperative electric utility
must list the low-income energy assistance funding factor as a separate line item on each
customer's bill.
Under the bill, before the bill's effective date, the low-income energy assistance funding factor
could not exceed $1. Beginning on the bill's effective date, the MPSC could not increase the
low-income energy assistance funding factor by more than $0.25 each year and the low-
income energy assistance funding factor could not exceed $2. The bill also would delete the
cap on the amount used by the MPSC to calculate the funding factor.
Under the Act, an electric utility, municipally owned electric utility, or cooperative electric
utility may elect to not collect a low-income energy assistance funding factor by annually filing
a notice with the MPSC by July 1. Notwithstanding any other provision of the Act, an electric
utility, municipally owned electric utility, or cooperative electric utility that elects to not collect
a low-income energy assistance funding factor may not shut off service to any residential
customer from November 1 to April 15 for nonpayment of a delinquent account. The bill would
delete these provisions.
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MCL 460.9t Legislative Analyst: Nathan Leaman
FISCAL IMPACT
The bill would likely have a negative fiscal impact on State government and no fiscal impact
on local government. The amount of revenue received by the Fund likely would be higher
under the bill, though the exact amount would depend on the low-income assistance funding
factor determined by MPSC each year. The bill also would delete the cap on the Fund, allowing
the Fund to grow beyond $50.0 million and all this money would be spent on energy
assistance. This increase could result in an added cost for additional staff to administer the
program.
Fiscal Analyst: Nathan Leaman
SAS\S2324\s880sa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official
statement of legislative intent.
Page 2 of 2 Bill Analysis @ www.senate.michigan.gov/sfa 880/2324


Statutes affected:
Substitute (S-1): 460.9
Senate Introduced Bill: 460.9
As Passed by the Senate: 460.9