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Power outage credit for Michigan customers with lengthy, repetitive outages is raised

The MPSC said this is meant to compensate people who lose electricity while also incentivizing electricity providers to improve their service.
Credit: 13 ON YOUR SIDE

MICHIGAN, USA — The Michigan Public Service Commission has raised the amount of the bill credit customers who experience lengthy power outages can receive to $40 per day. 

The commission said this is meant to compensate people who lose electricity while also incentivizing electricity providers to improve their service. 

“We understand that the outage credit won’t cover everything lost when the power goes out, but the credit will help customers while encouraging utilities to do all they can to restore service quickly,” said MPSC Chair Dan Scripps. 

The MPSC's order has increased the outage credit by $2 for each day the power is out and for repetitive interruptions. 

The credit is automatically applied to the accounts of customers whose outages meet the threshold for the credits. 

Customers won't have to request credit from their electricity provider. 

The MPSC posts monthly outages and credit statistics for utilities statewide on its website

Before the MPSC updated the outage credit in 2023, customers could only receive a one-time $25 credit, which they had to ask their utility provider for. 

MPSC raised the credit to $35 for each day a customer is without power, with the credits indexed to inflation. 

The MPSC raised the credit to $38 in September 2023 because it's required to adjust the credit each year. 

"The credits are one tool the MPSC is using to encourage utilities to improve the power grid to better withstand increasingly frequent extreme weather and restore power as rapidly as possible after outages," said Scripps. 

The power outage credit will begin after 96 hours during "catastrophic conditions."

These conditions are defined as:

"A utility having 10% or more of its customers without power; after 48 hours during gray sky conditions affecting between 1% and 10% of a utility’s customers; and after 16 hours during normal conditions."

Customers who experience more than six sustained power interruptions over the course of a year are also eligible for the outage credit. 

More information on outage credits can be found here

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