In December 2024, the Michigan legislature passed a bill during a lame duck session that will impact your electric bill going forward.
Michigan Public Act 169-2024 adds a monthly charge to every electric bill in the state of Michigan. The money collected will fund the Michigan Energy Assistance Program, known as MEAP, which provides support to income qualified households to help avoid energy shutoffs.
Until now, Cherryland was exempt from this charge. We opted out because, year after year, we were required to collect more from our members than our community received back in assistance. In essence, our members were subsidizing electric bills elsewhere in the state.
That decision wasn’t without consequence. By opting out, we were prohibited from disconnecting past-due accounts during the winter months. For the last 10 years, we’ve honored a winter moratorium on disconnections from Nov. 1 to April 15.
The MEAP program has always brought up mixed feelings for me. On one hand, I believe deeply in helping our most vulnerable members keep their lights on. Cherryland has led with compassion and innovation—piloting the first low-income community solar program in the state, launching a home repair grant program, and supporting nonprofits that make homes more efficient for families who can’t afford upgrades on their own. I would never advocate for withholding help from those who need it.
One positive change in the new MEAP law is the increased income eligibility threshold, which means more families may qualify for assistance. That’s good news.
But I remain skeptical of programs that have historically funneled rural dollars to urban centers. Under the new legislation, the Michigan Department of Health and Human Services will be required to report where MEAP funds are collected and where they’re distributed. That kind of transparency is overdue, and we’ll be watching closely to ensure our members see a fair return on what they’re paying in.
In the meantime, here’s what this new law means for you:
- Starting in September, you’ll see a $1.25 per meter per month state mandated charge on your electric bill. This charge will appear as “MI PA 169-2024 Compliance” and 100% of those funds will be remitted to the state.
- We will no longer observe a winter disconnect moratorium.
- Disconnections for nonpayment will follow our regular billing cycle year-round. However, members will now qualify for MEAP funds year-round beginning October 1,2025. We want to make sure our members get the assistance they’re paying for, so please give us a call, check out our podcast, or hop on our website to learn more about how to apply for assistance.
If you have concerns or want to share feedback on this state mandate, I encourage you to reach out to your elected officials.
As always, we’ll continue to advocate for energy solutions that serve our community—not just in theory, but in practice.
I don’t like this as some people are older and do not know how to apply. People could freeze to death waiting to get turned back on. This will fall on the conscience of Cherryland and the state. That non shut off saved lives in Michigan winter. One more government controlled thing
Hi Kellie – I understand your concern. While I didn’t discuss it in this column, everyone over the age of 65 is protected from disconnect in the winter. This is true at all utilities in Michigan. If you know of any seniors, just make sure their birthday is on file with us and they are protected from disconnect from November 1 – March 31. That said, it’s also important we help connect them with assistance. They are paying for it via this mandate and we want to make sure those that need it get it. Our member services team is excellent at directing members to the right assistance agency for their needs. Anyone struggling to pay their bill should give us a call and we will do everything we can to help them out. Thanks for the comment and for your concern about our senior members.
The author is in favor of helping the poorest among us, but is opposed to helping the poorest that live in downstate cities. Got it!
Richard – I can’t tell whether you agree or disagree, but you are correct that I am concerned about taking care of the people we serve. That’s my job. It’s not that I don’t personally care about poor and disadvantaged people everywhere, it’s that I have a responsibility to the people who get their power from Cherryland. If we’re going to collect money from them via what is essentially a regressive tax on the electric bill, I will advocate tirelessly to make sure they get access to their fair share of that.
Need to make sure kids and everyone can have heat and ac when needed. Waiting for job to provide meal payments may kill off more people Not a good idea for meal program
Hi Constance – The good news is that this mandate is going to increase the funding for energy assistance and increase eligibility. So, it should do exactly what you are describing by making sure those who are struggling to make ends meet can get help with their gas and electric bills. This funding is earmarked exclusively for energy assistance and is, therefore, not impacted by any other assistance funding shortfalls – like SNAP or food assistance. If you or anyone you know is struggling to pay your bill, give us a call and we can help walk you through the process to apply for energy assistance through MEAP.
Need to make sure kids and everyone can have heat and ac when needed. Waiting for job to provide meal payments may kill off more people Not a good idea for meal program Plus what if meal runs out of funds. Then what happens to people ?
Sounds like the working-class is now going to pay more so the poor people can have electricity so they can watch their big screen TV’s with all the pay per view channels and be able to charge the latest $ 1200 to $1500 I Phone, while sitting at home and not working
The article states the fee is $1.25 per meter per month. I have a meter for my household use and a second meter for my interuptable geothermal heat. Does this mean I will be paying a total of $2.50 per month?
I’m glad you asked this question, Rick. If you have multiple residential meters at one location (like you do), you’ll only be charged on one. So, no, you will not pay $2.50/mo. You will pay $1.25/month on your main meter and nothing on the heat meter.
You had the ability to opt out in 2024. Did the state require coops to participate now or did Cherryland choose to opt in?
The law changed, effective this year. Previously, we could opt out if we agreed not to disconnect in the winter. Under the new law, we cannot opt out anymore.
For the needy people that the State is referring to they won’t have internet to read this. I am sure that a bulletin would need to be enclosed with a bill in advance. And in some rural areas there are people who still don’t have internet.
And while electricity is important some people don’t manage how they use it. It would make more sense to help the needy people understand how they are using their electricity (maybe the furnace can’t be fixed and they are heating with an electric oven) when they are consuming it without any thought of conservation. This isn’t just about electricity use it is a bigger problem. Things should have been left as they were. I would be all for community interventional help program to actually solve a families problem not take money from one community and burden another.
Jessie – you are correct, this issue is much more complex than a simple energy assistance program can fix. We also have programs in place to help upgrade and make homes more efficient for our most vulnerable members. We have partnered with several local non-profits, including Habitat for Humanity, Freedom Builders, and Northwest Michigan Community Action Agency to offer Cherryland-funded grants to make those repairs. We expect to expand that program next year. But, it can be challenging, often these families are renters which puts them at the mercy of what their landlord is willing to do or allow someone to do in the home. And, if the home gets improved, it potentially increases the rental value which can ultimately displace the family. Community-based solutions tend to work best because when we live and work here we tend to know what is best for here. I appreciate your perspective on that and totally agree with you.
Just FYI – we are planning to mail this information to all of our members via our magazine in September. In addition, our members who regularly did not pay their bills in the winter during the moratorium will be notified directly.
Thanks for the comment.
Another great program that will provide many jobs with great benefits and health insurance.
Thank you for an informative message, and the personal response to many of the comment made here. That’s the kind of responsive leadership we need. Keep up the good work .
Thanks, Jim. I appreciate the note and kind words.
Bottom line…customers have no choice in their provider. We’re completely held captive and at the mercy of whatever decisions you and the board make. Yes, this one was mandated. Yet every time we turn around, it’s another increase. It’s time for term limits for board members. With no fresh input, everything remains status quo. Some have made a career out of being on the board, and it’s time they moved on. New people bring new ideas. Maybe that could help rates be reduced for a change. Time for a policy change limiting board service.
Dee – as you rightly point out, this particular mandate is not under the purview of the board. If you have concerns about the mandate, I would encourage you to speak with your state legislators. If you have concerns for the board, they take member input at the beginning of every board meeting. Our next member input session is at 9am on Monday, September 22 at our office in Grawn. You can also reach out to them via email. Their contact information is available on our website here: https://cherrylandelectric.coop/governance/.