Michigan at risk of losing heating assistance program

A state fund that helps low income and unemployed people stay warm over the winter will be unavailable this winter unless the Legislature takes action to reauthorize the program.

The Michigan Citizen reports that the state’s Low Income Energy Efficiency Fund typically provides $90 million a year in assistance with energy bills and weatherization.

In July, the Michigan Appeals Court granted the wishes of the state’s largest energy customers — business and industry — to opt out of paying into the fund.

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The court case began in 2009 when former Michigan Attorney General Mike Cox joined ABATE, a business interest group representing large industrial energy users including auto makers, in a lawsuit challenging the Michigan Public Services Commission’s authority to oversee LIEEF.

The Michigan Court of Appeals ruled on July 21 that the Michigan Public Services Commission (MPSC) was not authorized to manage the fund.

MPSC spokesperson Judy Palnau says $62 million in energy assistance was already announced for 2011, but those monies will now be unavailable to agencies assigned with distributing them.

Maureen Taylor of the Michigan Welfare Rights Organization told Michigan Citizen that energy companies including General Electric are trying to convince state officials that LIEEF money should be invested in research and development of weatherization technologies.

The LIEEF money represents the bulk of the utility assistance funds distributed through the Salvation Army, the Michigan Community Action Agencies, and the Heat and Warmth Fund.

The legislature could make the money available by passing a bill that authorizes a system for administering the program.

Rather than take this up the Legislature has moved bills to kick families off cash assistance and deny food aid to college students.

The suspension of the LIEEF program comes as Congress is considering slashing funding for the federal Low Income Home Energy Assistance program. Though Gov. Rick Snyder has called on federal lawmakers to maintain funding for that program, he has yet to take action on the suspension of Michigan’s program.