October 11, 2005

With natural gas customers in Michigan facing a 46 percent price increase on winter heating bills, Michigan Public Service Commission (MPSC) Chairman J. Peter Lark and Commissioners Laura Chappelle and Monica Martinez today reminded customers that now is the time to “Be WinterWise” and increase the energy efficiency of their homes.  They also outlined the financial assistance programs available for low-income customers.

“The MPSC estimates the average homeowner’s winter bill increase will be about $59 per month, bringing the average monthly winter natural gas bill to about $187,” said Lark.  “With supplies down and demand up, prices have increased dramatically.  So now is the best time to begin planning for higher natural gas bills.”

Commissioner Laura Chappelle added, “With the dramatic increase in natural gas prices, it is absolutely critical that customers take energy efficiency to a whole new level -- from dialing down the thermostat to weather-stripping around doors and windows.”

Chappelle also highlighted other energy saving tips:

• Clean or replace furnace filters regularly, according to the manufacturer’s recommendations.

• Lower the thermostat on your water heater.  A setting of 120 degrees is comfortable for most uses.

• Add insulation to attics and walls, if needed.

• Install a programmable thermostat that automatically dials down the temperature at night and when no one is home.

• Insulate your gas or oil hot-water storage tank and pipes, being careful not to cover the thermostat.

Starting next year and in 2007, Chappelle noted that federal tax credits for certain energy efficient improvements will be available.  Tax credits vary depending on the type of improvement, but can be substantial. 

For low-income customers, Commissioner Martinez noted the programs available to help keep the heat on this winter.  “In September, the MPSC announced that it would make $41 million in grants to organizations that help low-income people with their bills, and yesterday the MPSC announced $10 million in grants for low-income energy efficiency, ” she said.    “We expect that money to be available early next year – just when the large bills arrive.”

Other financial assistance programs are:

• Utility budget payment plans, available to any residential customer

• The Winter Protection Plan, created by the MPSC and administered by the utilities, is available to senior citizens aged 65 and older, people receiving assistance from the Michigan Department of Human Services, or people with incomes at or below 150 percent of the poverty level.

• The Michigan Home Heating Credit from the Michigan Department of Treasury.  Forms will be available by the end of January anywhere tax forms are located.  After February 1, 2006 forms will be available by calling 1-800-827-4000.  Forms must be filed by Sept. 30, 2006.

• Local Michigan Department of Human Services offices administer the State Emergency Relief Program.

• The Internal Revenue Service offers an Earned Income Credit on federal tax forms.

The MPSC’s “Be WinterWise” campaign is designed to make people aware of higher natural gas prices, to provide information on what people can do now to lower their bills, and to provide information on the variety of financial assistance programs available to low-income utility customers.  More information is available on the “Be WinterWise” Web site located at: michigan.gov/bewinterwise.

Other conservation tips are available at energysavers.org or by calling the MPSC at

1-800-292-9555.

A list of energy demonstration centers can be found at:  warmtraining.org/medc.

Homeowners can conduct their own online energy audit here:  http://hes.lbl.gov/

Details on the federal tax credits available for energy efficiency improvements are located on the Michigan Energy Office’s Web site:  michigan.gov/energyoffice

The MPSC is an agency within the Department of Labor & Economic Growth.