The stgates utility customers to see higher refunds win increase in Michigan outage credit when outages linger or repeat.

MPSC Hikes Outage Credits to Push Utilities on Reliability

LANSING — The Michigan Public Service Commission (MPSC) on Thursday approved raising the power outage credit to $42 per day for customers who suffer prolonged or repeat outages, starting Oct. 1. The change boosts compensation by 68 percent over the prior formula and is part of a broader tightening on utility accountability.

Under the new rules, credits kick in automatically under defined outage conditions: 96 hours during catastrophic events (10 percent or more of customers without power), 48 hours in “gray sky” events (1–10 percent affected), or 16 hours in normal conditions. Customers who endure more than six sustained interruptions in a year also qualify.

Previously, customers had to request credits under the older $25 flat rate. In 2023, the commission revised that to $35, indexed credits to inflation, and began issuing them automatically. In 2024, the reforms yielded $8,456,093 in outage credits, a sevenfold jump from the $1,213,286 issued in 2022 under the older framework.

“MPSC Chair Dan Scripps said the credits, while not fully covering customer costs, press utilities to restore service more quickly and make the compensation automatic to those affected.” (MPSC News Release)

Gas Safety Penalties Also Increase Under Inflation Adjustment

In tandem, the commission raised maximum fines for violations of gas safety standards to align with inflation. Each violation can now carry a daily fine up to $202,511, and a cap of $2,531,383 for a series of related violations. Under Public Act 165 of 1969, the MPSC holds oversight of gas safety and enforcement.

These revised amounts update previous caps of $200,000 per violation and $2.5 million in aggregate. The increase reflects years of push to bring Michigan’s standards in line with federal expectations. Lawmakers have previously debated bills such as Senate Bill 366 to achieve parity with federal standards.

Why the New Michigan Outage Credit Matters to Customers

For Michiganders, the new $42 credit offers stronger recourse during lengthy outages. That may be especially welcomed in rural and Upper Peninsula areas where storms, snow, or equipment failures can leave customers disconnected for days.

Consumers Energy notes that customers do not need to apply for the credit; it will appear automatically within 90 days post-restoration. Still, critics argue outages can inflict bigger losses than the credit can cover, including spoiled food, lost wages, or medical risks.

Michigan ranks poorly on reliability metrics. A 2023 report found the state had the worst average restoration times in the nation, adding urgency to MPSC’s action.

Legislative Pressure and Next Steps

Consumer advocates and legislators continue to push for stronger protections. A proposed “Ratepayer Bill of Rights” would expand outage credits further, paying $5 per hour during outages, rising to $25 per hour after 72 hours.

The Oct. 1 implementation date gives utilities time to adjust billing systems. Customers should review bills for an “outage credit” line item or file complaints with the MPSC if they believe credits were missed.

Public hearings continue this fall, with an Oct. 21 session set to address additional gas safety rule changes.

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