MI Low Income Energy Fund - LIEAF FAQs
Alger Delta Cooperative Electric
LIEAF FAQs
What is the LIEAF surcharge, and when does it start?
Michigan Public Act 169 requires a Low-Income Energy Assistance Fund (LIEAF) surcharge of $1.25 per meter per month, which will begin with Alger Delta Cooperative Electric's September 2025 billing. The annual surcharge applies for the 2025–2026 heating season, as mandated by the Michigan Public Service Commission (MPSC). This charge will appear on your bill as "MI Energy Assistance Fund."
Why was this surcharge created?
LIEAF was established under Public Act 95 of 2013 and amended in 2024 to ensure all Michigan electric utilities contribute to low-income energy assistance. It ensures statewide funding support for families struggling to afford their energy bills. View Public Act 169 of 2024.
What members pay this surcharge?
The fee applies to all retail meters – both residential and commercial – but is not charged on more than one residential meter per residential site.
Where does the money go and who disperses it?
Funds collected through the LIEAF surcharge are remitted monthly to the Michigan Department of Treasury, which then distributes the money to state-approved nonprofit agencies through the Michigan Energy Assistance Program (MEAP). These agencies provide energy assistance services such as bill payment support and crisis prevention for qualifying households.
How do we know if the money stays local?
The MPSC requires that MEAP funds be distributed in proportion to the geographic area where they were collected to the extent possible. This means the dollars contributed by Alger Delta Cooperative Electric members are intended to benefit low-income households within Alger Delta Cooperative Electric’s service area and will be administered through local assistance agencies.
How are rates set?
The MPSC sets the LIEAF rate annually by May 1 for the following heating season.
Who benefits from these programs?
Funds support low-income households by providing bill payment help, crisis prevention and budgeting assistance. These services are delivered through MEAP-funded nonprofit agencies.
How is low-income eligibility determined?
Alger Delta Cooperative Electric does not determine eligibility, process applications or award funding. Eligibility and the application process is determined by the specific low-income agencies and programs. Low-income eligibility is typically determined by the Federal Poverty Levels, which change each year due to inflation. In 2025, MEAP announced it will replace the 150% of the Federal Poverty Level requirement with a new determination factor based on 60% of the state’s median income. This new factor will raise the income level eligibility based on the number of household members and should result in more members being eligible for funding.
Alger Delta Cooperative Electric’s member services team will direct members to the proper agencies and provide information on the programs available. Members delinquent on bills or working with an assistance agency should inform our member services team.
Where can I get more information?
Call or text 211 to connect with local assistance agencies.
Or Visit: https://www.algerdelta.com/payment-assistance