Overview
- 37% of Michigan’s households are low-income and earn less than $30,000 each year. As a percentage of income, energy burden refers to households’ heating and electric costs. (Source: *directly quoted* https://www.elevatenp.org/wp-content/uploads/Energy-Burden-in-MI.pdf)
- According to Elevate Energy (a nonprofit organization), Michigan’s average annual energy cost is $2716 If household energy costs exceed 6% of household income, it is considered energy-burdened. To afford this bill, Michigan households would need $45,000 annually. Energy efficiency upgrades for your home, such as insulation, air sealing, lighting upgrades, etc., can reduce your energy burden and save you between 15% and 30% on your energy costs. (Source: *directly quoted* https://www.elevatenp.org/wp-content/uploads/Energy-Burden-in-MI.pdf)
- January 20, 2022, victory for customers with the highest energy burdens. The Michigan Public Service Commission approved a settlement agreement in the DTE Energy Waste Reduction case. DTE must increase its budget for income qualified gas and electric energy waste reduction. This settlement was approved by the Michigan Public Service Commission. These budget increases of $10.5 million for 2022 and 2023 will help Michigan households who have the highest energy burdens or spend the most income on energy costs.
- Energy burden is disproportionately affecting those living in poverty ($26,000.50 for a family with four in 2022), especially seniors, low-income families with kids, and racial/ethnic minorities. They are also more likely to renters. Low-income seniors are much more likely to have service interruptions for 24 hours or more, and children in energy insecure homes are also more likely to face food insecurity, hospitalizations, and developmental delays Poorly heated or cooled homes contribute to asthma, respiratory problems, heart disease, arthritis, and rheumatism. Families often have trouble paying their energy bills and must sacrifice nutrition, medicine, or other necessities to offset the effects of inequality. (Source: *directly quoted* https://www.elevatenp.org/wp-content/uploads/Energy-Burden-in-MI.pdf)
- The Washtenaw County opportunity Index shows that a large portion of the county has a low child poverty rate of 0-5 percent, while the poverty rate in the greater Ypsilanti area rises to 37-66%. This ruling could help low-income residents make improvements to improve energy efficiency and lower their bills. It may include fixing leaky roofs, water infiltration and faulty ductwork. These issues can also lead to investment delays and health risks. (Source: http://www.opportunitywashtenaw.org/economic-well-being.html)
- Alexis Blizman is the Legislative & Political Director of Clean Energy & Climate Action Team. She says that addressing health and safety issues such as comfort, air quality, and environmental hazards will make people live in a healthier environment and improve their quality of living. (Source: *directly quoted https://www.ecocenter.org/dte-energy-waste-reduction-case-settlement-helps-most-vulnerable-customers?eType=EmailBlastContent&eId=76bdf1de-7fdf-4949-bf13-ed7863c41ccc)
Transcription
David Fair: I’m David Fair. This is the topic on 89 WEMU’s Issues of the Environment. 37% of Michigan households are low-income, which means they earn less than $30,000 per year. This means that many people face an enormous energy burden. A recent settlement between DTE Energy (Michigan Public Service Commission) will be most beneficial to those in this situation. DTC will spend 10 million dollars over two years to reduce some of the worst levels of energy burden. Alexis Blizman is our guest today. Alexis is the legislative and policy director at the Ann Arbor-based Ecology Center. We are grateful for your time today.
Alexis Blizman It’s a pleasure to be here.
David Fair: What was the origin of the complaint that eventually led to the settlement between DTE & the Public Service Commission?
Alexis BlizmanThe regulated utilities are required every two years to file their energy waste reduction plan. We intervened in this matter. The case was then reopened two years later, in partnership with Ecology Center and NRDC, Sierra Club Earthjustice, National Housing Trust, and Earthjustice. Our intervention has primarily focused on income-qualified energy waste reduction.
David Fair: The settlement announcement states that it will reduce some of the state’s highest energy burdens, which was clearly the goal you were working towards. Who is this going to help exactly?
Alexis Blizman It’s really..this was geared, obviously, to DTE customer territory. But we really tried to ensure that this had on then targeted those with the highest energy burden. These are often Black and Brown communities. Detroit has one of the most severe energy problems in the country. This plan is what it serves.
David Fair: Both of us have spoken out about energy burden many times. How do you define energy load?
Alexis Blizman Energy burden is the amount of income households will need to spend on energy costs. This includes all utilities, electric and gas. The average home spends three to five percent. In Detroit, those with lower incomes and income qualified may face energy burdens up to 10% to 15%. These households are really hit hard by not being able to use the money for other necessities like food, transportation, or medical costs.
David Fair: DTE will invest 10 and a quarter million dollars in this effort over two years. How will this settlement money be used specifically?
Alexis Blizman It’s actually an increase in the number of people by ten percent five million.
David Fair: Here you go. Better said.
Alexis Blizman It’s also more than 35 million more than their budget for 2020-2021. This is a significant increase. This money will be used to improve energy efficiency and weatherization in the home. Things like insulation, air sealing, and new furnaces are all things that can help lower energy costs. Many of the programs are designed to assist with bill payment assistance. That assistance is vital. Even though payment assistance is not a solution, it does not eliminate the high energy burden that comes with being unable to pay for utilities. This is why we need to make these investments in energy efficiency.
David Fair: 89 one WEMU’s Issues of the Environment continues with Alexis Blizman (Ecology Center legislative and policy director) as we speak with her. What other avenues at the federal, state and local levels are being explored to improve DTE’s energy efficiency?
Alexis BlizmanThere are certainly a lot more weatherization dollars coming down through federal government, both through infrastructure plan and American Rescue Plan. The state budget negotiations are still ongoing. But we want to make sure that there is more money going toward these efforts. The settlement also includes a pilot for health and safety. This pilot was established two years ago. There are many people who have the income to qualify for these energy-saving measures. But the condition of their homes due to disinvestment (e.g., history of redlining) often results in problems such as leaky roofs, mold infiltration or lead. We also see ductwork that is either non-existent or substandard. Sometimes you may have outdated wiring. So, until these issues are addressed in your home, you cannot move forward with the energy-saving measures. We established a pilot program with DTE to address some of the safety and health issues that led to deferrals, after we reached a settlement two years ago. It’s been a tremendous success. We were able to expand the program geographically and demographically for this settlement to ensure that those with the greatest energy burden are receiving these services. However, this program needs to be funded with a lot more money.
David Fair: On a larger scale, we can see that there are many assistance programs available and will continue expanding. It is a small-scale approach that works small by little. Are we putting off the necessary action to address the root causes of poverty, such as wage and income disparity?
Alexis Blizman Absolutely. All of these things are interconnected. This is just a small portion of the problem. There are so many other things to be done. We are also working on affordability programs within utilities. This is something that is not related to energy waste reduction. This year, they’re piloting a program for a percentage income payment plan. We hope to see this expanded at the state-level, so that everyone pays less than, you know. 10 percent for gas and electric. Michigan’s energy costs continue to rise without these long-term affordability measures. DTE has just filed a rate increase request. Without things that are specific to low-income individuals, we will not solve the problem. But, also, you are right. You know what? Higher wages, better benefits and schooling.
David Fair: There is no one-stop solution. It’s going take all of them, right?
Alexis Blizman Right.
David Fair:Alexis Blizman, Ecology Center on WEMU’s Issues of the Environment, is our guest. We must not only deal with the past, but also consider the future. Are you willing to work with elected officials and other policymakers to look at possible steps such as requiring that all new construction, especially affordable housing, comes with solar panels and charging stations that would help reduce some of the energy burden.
Alexis Blizman Absolutely. We are both working at the legislative and continuing to work in some of these cases within the Public Service Commission as well as, as you know, with MSHDA to try to ensure that all affordable housing has access to renewable energy and energy efficiency. All of these things must be connected and people should be able to control their energy production.
David Fair:Is there similar progress in consumers energy to the one we are seeing with DTE?
Alexis Blizman The Consumers Energy case for waste reduction has also been influenced by the same coalition. The case is currently pending. We hope to reach a similar settlement. Two years ago, consumers also signed the health and safety program. We anticipate that it will continue. It’s been so successful, in fact, that all major regulated utilities now have some type of safety and health payment. This is an important piece to get this done.
David Fair: What is the next step for those who are unsure if they’re eligible?
Alexis Blizman There are many ways to get help and connect to these programs. It includes their outreach to customers but also Michigan 211 to get help. You can also contact the Public Service Commission and they will put you in touch with those who run these programs. We want to ensure that everyone is informed. These agencies are also essential to this work. They do a lot of the contractor work but also do outreach and help to identify potential problems.
David Fair:Alexis, I want to thank you for taking the time to speak with me today. It is very much appreciated.
Alexis Blizman We are very grateful.
David Fair:Alexis Blizman is the one. She is the Ann Arbor-based Ecology Center’s policy and legislative director. Visit our WEMU dot.org website for more information about today’s guest. This weekly feature is produced in partnership by the Office of the Water Resources Commissioner and you can hear it every Wednesday. I’m David Fair and this is one WEMU FM.
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