Michigan Approves Increased Power Outage Credit for Eligible Customers

The Michigan Public Service Commission (MPSC) has approved an increase in power outage credits for eligible customers from $25 to $35. The decision was made after a series of ice and snow storms that caused widespread outages in the southern Lower Peninsula. This left many customers outraged, and public officials demanded action.

$35 for Each Day Customers Are Without Power

The new credit system will provide an additional $35 for each day a customer is without power. The credits will be automatic, removing the need for customers to apply for them. The outage credit application will be on a tiered system based on the percentage of customers affected and will also be indexed to the rate of inflation.

Automatic Credits Follow Recent Storms

The credit increase follows recent ice and snow storms that caused widespread outages in the southern Lower Peninsula, leading to outrage from both customers and public officials. With the automatic reimbursement now in place, customers affected by power outages can rest assured that they will receive financial relief.

Strengthening Rules And Technical Standards For Regulated Utilities

The MPSC approved strengthening the rules and technical standards for regulated utilities. This includes the creation of a Distribution System Reliability Metrics webpage that will measure the duration and frequency of outages. Further, measures have been put in place to ensure customers’ service isn’t shut off without proper notice.

Shortened Time Requirement To Restore Long-Duration Outages

The MPSC also approved shortened required times for utilities to restore long-duration outages. This measure is aimed at ensuring faster responses during catastrophic events, such as those experienced earlier this year.

Third-Party Audit To Address Reliability Issues

To address ongoing reliability issues, the MPSC ordered a third-party audit to review equipment and operations of two utilities’ distribution systems. The Citizen Utility Board (CUB) believes that the audit will likely demonstrate that utility management practices are at least part of the problem in reliability issues.

Annual Reporting Requirements To Ensure Service Quality

Annual reporting requirements for rural electric cooperatives and all investor-owned utilities have also been established to ensure they report service quality and reliability performance to the Commission. Technical standards were updated with new requirements for electric utility and cooperative reporting on outages, additional requirements for utility line clearing programs, updates to electric metering, and requirements for cybersecurity programs.

Conclusion

Overall, the MPSC’s decision to increase power outage credits is a positive development for Michigan customers affected by power outages. The automatic reimbursement system will provide financial relief while strengthening rules and technical standards will help utilities respond faster during catastrophic events. The measures put in place by MPSC will ensure Michigan residents have access to reliable power.

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