2026 Update: For the 2026–2027 heating season, the surcharge will increase from $1.25 to $1.50 per meter per month, starting with Cloverland's September 2026 billing. It appears on monthly bills as "MI Energy Assistance Fund." This change occurred with MPSC Case No. U-17377 order dated April 17, 2026.
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 Cloverland Electric Cooperative'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 Cloverland members are intended to benefit low-income households within Cloverland’s service area and will be administered through local assistance agencies.
What did Cloverland’s board of directors decide about the LIEAF surcharge for 2025–2026?
Cloverland’s board of directors voted to opt in to the state-managed LIEAF program. A low-income assistance program is mandated for all utilities annually whether it is managed through the state or the local utility. Cloverland elected to have this program administered by the state.
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?
Cloverland 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. Cloverland’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?
Payment assistant agencies are available on our website.
- Notices are posted in the Cloverland Connections magazine and on cloverland.com.
- Call or text 211 to connect with local assistance agencies.
- View Michigan Energy Assistance Program FAQs