What PA 169 (LIEAF Surcharge) Means for the Ontonagon County REA

Posted September 15, 2025

What PA 169 Means for the Ontonagon County REA

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, the Ontonagon County REA 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.

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 October, for your September billing, you’ll see a $1.25 per meter per month state mandated charge on your electric bill. This charge will appear as “LIEAF” 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 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.

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