Michigan Public Service Commission Increases Power Outage Credit Rate

Michigan residents paying for electricity who endure lengthy power outages are now eligible to receive additional compensation, thanks to a decision by the Michigan Public Service Commission.

Prior to 2023, electricity customers were eligible only for a one-time $25 credit, and customers had to ask for it from their utility. The Commission raised the credit initially to $35 per day for each day a customer is without power, with the credits indexed to inflation. The Commission, which is required to adjust the credit each year, last raised the credit to $38 in September 2023. The commission announced Thursday that credit is now $40 per day a rate payer is without power and for repetitive interruptions. The credit is automatically applied to the accounts of customers whose outages meet thresholds for the credits, so customers no longer have to request the credit from their utility.

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; after 48 hours during gray sky conditions affecting between 1 and 10 percent of a utility’s customers, and after 16 hours during normal conditions. Customers who endure more than 6 sustained power interruptions in one year also are eligible for the outage credit.

The commission says the increased credits toughen an incentive for electricity providers to improve reliability and shorten the length of outages.