April 3, 2020
Michigan Public Service Commission
7109 W. Saginaw Highway
Lansing, MI 48917
Via
Electronic Mail (mpscedockets@michigan.gov)
Re: Seeking
MPSC Leadership to Address Key Impacts of the Coronavirus Crisis
Dear Commissioners Talberg, Scripps, and
Phillips:
We write on behalf of Sierra Club and
its more than 23,000 members in Michigan, and Earthjustice, to urge you to take
immediate action to ensure all residents have access to essential utility
services as the state confronts a public health emergency. We echo the concerns
raised by the DTE Works for Me coalition in its letter of March 25, 2020, as
well as those raised by the Michigan Energy Efficiency for All coalition’s
letter to Governor Whitmer on the same date [1]. Although DTE Energy and Consumers Energy have enacted certain voluntary
measures, a Commission order would provide needed clarification as to the
duration and scope of this relief and would extend to customers served by other
utilities, such as the state’s municipalities and co-ops.
In addition to issuing an emergency
order to immediately address utility shut-offs and reconnections, the
Commission should prioritize affordability issues across its dockets, and
should open a new docket to specifically address the impacts of the COVID-19
crisis. As jobless rates soar, affordability will become paramount for an
increasing percentage of each utility’s customers. Moreover, social distancing
and stay-at-home orders both increase residential energy use while making energy
efficiency work to bring down bills more challenging, or even impossible,
during the current emergency. Finally, as stakeholder meetings cannot be held
in person at this time, the Commission should develop procedures for robust
online or phone-based alternatives that are as inclusive as possible, and that
should be used by the Commission and utilities until such time as public health
conditions allow for in-person meetings and hearings to safely resume. The
Commission must take a leadership role in navigating each of these issues to
protect the public interest.
We request that the Commission:
(1) Issue
an emergency order pursuant to MCL 24.248 that
○ Suspends gas and electric utility shut-offs for nonpayment for
all customers;
○ Orders reinstitution of gas and electric services that have
already been shut off for nonpayment, whether the shut-off occurred before or
after the onset of the coronavirus emergency;
○ Requires
utilities to include a bill insert in the next billing cycle noting all
financial assistance or flexible payment programs available, and how the
customer can access more information about such programs. The utility should
also describe the specific eligibility requirements and timeframe for programs
specific to coronavirus relief. Utilities should make this information
accessible to all customers, whether or not they have internet access or
English language proficiency.
(2) Pursuant
to the Commission’s broad authority under MCL 460.6(1) , require each utility
to submit an “affordability plan” to the Commission within 180 days that
describes the steps each utility will take to address the economic hardship of
residential customers resulting from the COVID-19 crisis and considers reforms
to the utility’s working definition of “low-income,” the utility’s fixed
charges for residential customers, its net-metering tariff and other policies
affecting the affordability of distributed generation, assistance programs for
low-income and senior customers, and energy efficiency assistance, with the
goal of reducing the number of customers who cannot consistently pay their
bills. The Commission should offer a public comment period on each plan and
should hold a public hearing virtually or, if public health conditions permit,
in person. Following public comment, the Commission should either approve or
recommend changes to the utility’s plan. If it is a utility’s preference to
file the affordability plan as part of a rate case filed within the 180-day
period, the utility should be permitted discretion to do so. In such instances,
the Commission should require the utility to identify and describe all the
elements of the affordability plan in direct testimony.
(3) Establish
a stakeholder process to create continuity plans for energy efficiency
programs, energy assistance, and the energy workforce during the crisis, as
proposed to the Governor’s office by Michigan Energy Efficiency for All. As
explained by MEEFA:
The energy efficiency sector, like all other sectors of the economy, has experienced severe disruption. However, as residents are being advised to stay home, it is increasingly important that the homes they are staying in are safe, comfortable, healthy and efficient. We should be planning to create continuity within the energy efficiency, weatherization and assistance programs, particularly for those who serve low-income residents. This process should also ensure continuity of energy efficiency and related program dollars flowing to workers and agencies administering and delivering energy efficiency, energy assistance and other complementary programs. That way we can ensure there is a plan in place to jumpstart this critical work once the immediate emergency has passed. The MPSC process should be inclusive and open to all interested parties.
(4) Issue
guidance with best practices for how utilities should engage with stakeholders
during periods where public gatherings are not permitted. For example,
Consumers Energy had intended to hold stakeholder meetings for its 2021
Integrated Resource Plan throughout the spring. The public should still be
provided a meaningful and timely opportunity to participate in any stakeholder
process intended to take place during the stay-at-home order. The Commission
should provide an opportunity for public input on the guidance.
Thank you for your attention to these
critical issues. We look forward to your decisive action to protect Michigan’s
utility customers in these difficult times.
Sincerely,
 Mike Berkowitz, Campaign Representative |
Elena Saxonhouse, Senior
Attorney
(415) 265-2943
Sierra Club
|
|
(248) 345-9808
|
|
Sierra Club
|
|
Michael Soules, Staff Attorney
|
Shannon Fisk, Managing Attorney
|
|
(202) 797-5237
Earthjustice
|
(215) 717-4522
Earthjustice
|
cc:
Governor Whitmer (governorsoffice@michigan.gov)
Attorney
General Nessel (StaffordA4@michigan.gov)
Kara
Cook (CookK14@michigan.gov)
Michael
Moody (moodym2@michigan.gov)
