Transcript Low Income Programs and Consumer Protections

Low Income Programs and
Consumer Protections
Energy Regulatory Partnership Program
Abuja, Nigeria
July 14-18, 2008
Presented by Robert W. Kehres
Forms of Assistance and Customer
Support
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Medical Emergencies
Winter Protection Plan
Low-income Energy Efficiency Fund
Residential Billing Rules
Complaint Process and Settlement Agreements
Toll-free Customer Service Line
Consumer Alerts
Consumer Forums
A vast amount of customer information is available online
• The Commission must allow anyone to make comments
at every Commission meeting
Medical Emergencies
• R 460.147 – a utility shall postpone the
shutoff of service for not more than 21
days if the customer or a member of the
customer’s household is suffering a
medical emergency.
• Shutoff protection may be extended for up
to 63 days per household member.
• Shutoff protection may not exceed 126
days per year per household.
Winter Protection Plan
• It gets very cold in Michigan in the winter
months.
• Residential customers’ spending on
heating costs is concentrated in the
months of November – March.
• The Winter Protection Plan (WPP) is the
Commission’s effort to protect low-income
and elderly customers from shut-off of
service during winter months.
Winter Protection Plan
• Established by Administrative Rule, R 460.148149, and by Statute, MCL 460.10t.
• Meant to assist those groups of customers who
have trouble dealing with increased costs in
winter.
• Primarily a natural gas issue.
• R 460.148 applies to low-income customers.
• R 460.149 applies to elderly costomers.
R 460.148 Low-income WPP
• Eligible low-income customer means a
utility customer whose household income
is less than 150% of federal poverty
guidelines or anyone who receives any of
the following:
– Supplemental Security income or low-income
assistance
– Food stamps
– Medicaid
Low-Income WWP
• Does not apply to situations involving
unauthorized use.
• Applies November 1 to March 31.
• Customer must ask for shutoff protection.
• Customer must apply for assistance.
• Customer must pay 7% of estimated annual bill
per month and a portion of an arrearage, if any.
• Shutoff protection ceases if customer fails to
pay.
Senior Citizen WPP
• R 460.149 – applies to persons 65 years
old or older who informs the utility of his or
her eligibility.
• An eligible senior citizen’s utility service
cannot be terminated during the space
heating season.
• If shutoff, a utility must reconnect service
to an eligible senior without any charges.
The Origin of the Low-income
Energy Efficiency Fund
• Public Acts 141 and 142 of 2000 created
the Low-income Energy Efficiency Fund
• Act 142 allowed a public utility to securitize
certain of its assets.
• Excess securitization savings were to fund
the LIEEF.
Current LIEEF
• Now, the Commission adds an amount of
LIEEF to a utility’s O&M costs, which is
included in all customers rates.
• Utilities contribute the proceeds to a state
fund.
• The Legislature appropriates the funds to
the Commission annually.
• The Commission disburses the funds by
order to grantees.
Residential Billing Rules
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Definitions
Application for service
Deposits and guarantees
Meter reading
Billing and payment standards
Voluntary termination of service
Utility procedures
Shutoffs and service restorations
Energy assistance and shutoff protections
Disputes and hearings
Commission appeal procedures
Complaints and Settlements
• Shutoff notice informs customer of right to
a hearing and to contact a social services
agency to check on eligibility for
assistance.
• Informal hearing
• Mandatory settlement agreements
• Informal appeals
• Formal complaints
Disputes – Informal Hearing
• A utility cannot shutoff service if the
customer has filed a complaint. R 460.139.
• Customer must pay the full amount not in
dispute and 50% of the amount in dispute,
up to $100.
• Utility has burden of proof
• Utility hearing officer’s decision may be
reviewed by an MPSC regulation officer.
Formal Complaints
• Follow the procedures set forth in the
Rules of Practice and Procedure
• Customer files complaint.
• Utility files answer
• Matter is heard by ALJ, who issues a PFD
• Exceptions and Replies to Exceptions
• Commission Decision
Toll-free customer phone line
• Phones are answered by Commission
employees who try to resolve disputes
• Sometimes, customers are referred directly to
the appropriate utility’s customer service
departments
• Utilities and Commission employees work
together to resolve the matter, if possible
• If resolution is not possible, customers are
informed about how to file a complaint
• Commission staff has various pre-drafted
complaint forms for use by a customer
Consumer Alerts
• The Commission staff prepares “Consumer
Alerts”
• These may be about any energy or utility-related
topic, such as projections of future electric and
gas prices, availability of propane and gasoline,
Winter Protection Plans, etc.
• Sent out to assistance agencies, news outlets,
and posted to the Commission website.
Consumer Forums
• Every year the Commission sets up
locations across the state for meetings
between the Commission, its staff, and the
public
• Representatives of utilities in the local
areas also attend
• The public may address the Commission
on any issue of concern.
Information on the MPSC website
• Statutes, administrative rules, case
decisions, and docket information on all
open and closed cases
• Press releases, consumer alerts, staff
reports, and MPSC investigations
• Complaint forms, instructions, toll-free
telephone number, and utility contact info
• Utility tariffs, names of alternative
suppliers, and pricing information
MPSC must allow public comments
• By law, the MPSC must reserve some time
at the end of every public meeting for
members of the public to address the
Commission
• The Chairman may limit the amount of
time that each person may use to make a
presentation
• The staff is available to follow-up after the
meeting.
The End