Energy Waste Reduction (EWR) Low Income Workgroup Michigan Energy Assistance Program (MEAP)

1. Energy Waste Reduction (EWR) Low Income Workgroup Michigan Energy Assistance Program (MEAP) Michigan Public Service Commission Wanda Clavon Jones, Manager Customer Assistance Division MEAP Section jonesw1@Michigan.gov July 26, 2018

2. Michigan Energy Assistance Act • On March 28, 2013 Public Act 615 of the Michigan Public Acts of 2012 was enacted creating the Michigan Energy Assistance Act that requires the Michigan Department of Human Services to establish and administer the Michigan Energy Assistance Program (MEAP).  The purpose of the MEAP is to establish and administer programs statewide that provide energy assistance and self-sufficiency services to eligible low-income households. • On June 8, 2016, Public Act 147 was signed by Governor Snyder extending the Michigan Energy Assistance Program for three years, until Sept. 30, 2019. This ensures the availability of $50 million in Low-Income Energy Assistance Funds to provide energy assistance to low-income customers.

3. Low-Income Energy Assistance Fund • On July 1, 2013 Public Act 95 of the Michigan Public Acts of 2013 was enacted creating the Low-Income Energy Assistance Fund (LIEAF) charging the Michigan Department of Human Services with expending money from the fund as provided by the Michigan Energy Assistance Act.  The Act allows the Michigan Public Service Commission (MPSC) to annually approve a low-income energy assistance funding factor, not to exceed $50,000,000, to support the LIEAF.  • On July 24, 2018, in Case No. U-17377, the MPSC adopted a funding factor of 93 cents per meter per month for all Michigan electric utilities that have opted to participate in the funding of the LIEAF, effective for the September 2018 billing month

4. MEAP Grantee Awards for 2018

5. 2019 MEAP RFP and Timeline • RFP Issued – June 29, 2018 • Inquiries Due – July 11th • Pre-Proposal Conference – July 18 • Proposals Due – July 31 • Grantees Notified Mid August • Program Start Date – October 1

6. MEAP Households Assisted *2018 through July 9, 2018

7. MEAP Is Assisting Michigan’s Most Vulnerable Customers - 2016 & 2017 * • Households may fall into more than one category and not all households fall into one of these. • *2018 through July 9,2018 At least one member that is disabled

8. MEAP Is Assisting Michigan’s Most Vulnerable Customers - 2016 & 2017 * • *2018 through July 9,2018

9. MEAP Is Assisting Michigan’s Most Vulnerable Customers - 2016 & 2017 Utility Affordable Payment Plans Consumers Energy DTE Energy SEMCO Low-Income Self-Sufficiency Plan (LSP) Monthly Assistance Plan (MAP) Consumers Affordable Resource for Energy Program (CARE) The service disconnection rate for customers on the LSP program has been consistently low. In 2017, DTE reported only 0.37% of enrolled households were shut off. Participation in CARE resulted in an average annual reduction from the previous year in gas usage of 1.34% and electric usage of 8.37%. During the 2017 program year, individuals who participated in the MAP program had an on-time bill payment rate of 84%.

10. MEAP 2019 – Grantee Role • As required by Public Act 615 of 2012: • MEAP Grantees will offer services that will enable participants to become or move toward becoming self-sufficient, including: • assisting participants in paying their energy bills on time, • assisting participants in budgeting for and contributing to their ability to provide for energy expenses, and • assisting participants in utilizing energy services to optimize on energy efficiency.

11. MEAP 2019 Michigan Department of Heath and Human Service Role • MDHHS determines eligibility and issues the initial crisis payment using LIHEAP funds • Reduces administrative and direct program costs; allows more dollars to be used for direct assistance • Provides an opportunity to leverage LIHEAP funds for APP- eligible households and other self-sufficiency measures • Eliminates the need for a client to provide information that MDHHS already has access to such as: • SSN validation • RSDI/SSI income & Medicare expenses • Child Support income and expenses • Unemployment Compensation Benefits • Department issued payments and benefits

12. MEAP 2019 – Grantee Role • No wrong door • Seeking a transition that does not disrupt the customer process • Navigators and Referral Agencies • Enroll customers inAPPs • LIEAF funds will used for ongoing payments for households enrolled in an APP • Provide Self-Sufficiency Programs • All participating households must receive services to assist with self-sufficiency

13. Funding for 2019 Grant Year LIHEAP (Federally Funded) LIEAF (Rate-payer Funded) Direct Assistance Administration Assurance 16 Weatherization State Emergency Relief (SER) Home Heating Credit (HHC) Self-sufficiency Service & Admin EAP Costs APP Other Direct Assistance Programs & Services Energy Payments Energy Payments Programs & Services Energy Payments MEAP Program Initial crisis payment funded through SER

14. MEAP and Energy Waste Reduction • MEAP assists in the resolution of energy crisis situations • Works with eligible households to develop self-sufficiency plan • Plan should help participants to become or move toward becoming self-sufficient • Self-sufficiency includes: • Paying energy bills on time • Budgeting for and contributing to ability to provide for energy expenses-enrollment in utility Affordable Payment Plan • Utilizing energy services to optimize on energy efficiency

15. MEAP and Energy Waste Reduction • Related to bill payment and energy usage, MEAP strives to: • Incorporate customer accountability • Provide incentives for positive actions • MEAP programs should: • Coordinate availability with other program services • Other program services that include energy crisis prevention programs, weatherization, and education focused on reducing energy consumption