The next time Michiganders suffer through a prolonged power outage, they will get a slightly higher credit on their utility bill.
On Thursday, the Michigan Public Service Commission approved raising the bill credit to $42 per day for customers who endure prolonged or frequent power outages.
The credit is an additional two dollars over the rate approved by the commission last year.
Before 2023, it was only a one-time $25 credit.
When the credit kicks in will depend on several factors, including the cause and the extent of the outage.
The power outage credit kicks in after:
- 96 hours during catastrophic conditions, defined as a utility having 10% or more of its customers without power.
- 48 hours during gray sky conditions affecting between 1% and 10% of a utility’s customers.
- 16 hours during normal conditions.
“While we know that these credits may not fully cover expenses and potential losses when the power goes out, they are an important tool for the MPSC to ensure utilities are doing everything they can to restore power quickly,” said MPSC Chair Dan Scripps.
In 2024, Michigan utility customers received $8.4 million in outage credits, a sevenfold increase over the $1.2 million in credits provided to customers in 2022, the last year under the previous rules.
According to the MPSC, the credits are designed to provide some compensation to utility customers while also acting as an incentive for utilities to improve reliability and get power outages restored faster.
