Michigan utility regulator raises outage credit that power companies must pay customers

(FOX 2) - The Michigan Public Service Commission increased the rate that utility companies must credit customers for lengthy outages by $2.

For those who are eligible, which is a customer who loses power for 96 hours in which at least 10% of the utility's households are affected, the payout will be $40 per day.

The MPSC, which regulates the power companies that feed the electric grid in Michigan, raised the bill credit on Sept. 5, a week after more than a hundred thousand DTE customers lost power in Southeast Michigan.

The storms that caused the outage included 70 mph winds and thunderstorms that moved across the state in late August. While DTE said it was monitoring the storms, it had expected them to dissipate over Lake Michigan. 

The outage credit will also be automatically applied to customers who qualify for the money. That means people no longer need to request credit from their utility.

"We understand that the outage credit won’t cover everything lost when the power goes out, but the credit will help customers while encouraging utilities to do all they can to restore service quickly," MPSC Chair Dan Scripps said. "The credits are one tool the MPSC is using to encourage utilities to improve the power grid to better withstand increasingly frequent extreme weather and restore power as rapidly as possible after outages."

Qualifying for credit

There are multiple ways for customers to qualify for an outage credit. They include:

• A customer that experiences an outage that lasts 96 hours during circumstances where at least 10% of a utility's households lose power
• A customer that experiences an outage lasting 48 hours during gray sky conditions affecting between 1% and 10% of a utility's customers
• A customer that experiences an outage longer than 16 hours during normal conditions
• A customer that endures more than six sustained power interruptions in one year