By Pat Frazier, Chief Operating Officer
In December 2024, Michigan approved changes to the Low-Income Energy Assistance Fund (LIEAF), expanding eligibility and funding for the Michigan Energy Assistance Program (MEAP). The new law requires all utilities to either participate in MEAP or establish their own assistance program that must follow the state’s guidelines. Eligibility for the program also broadened, potentially adding 335,161 qualifying Michigan households
Before the State’s mandatory participation, Cloverland Electric Cooperative has traditionally opted out of the program due to concern that the funds collected from members would be sent to heavily populated downstate areas and would not be distributed equally to its Eastern Upper Peninsula service territory. Opting into the program potentially allows for more consistent, year-round funding but leaves Cloverland dependent on state administration and distribution of funds.
For the 2025-2026 period, Cloverland’s Board of Directors voted to opt in to LIEAF for one year. This decision enables the co-op to evaluate whether participating in the state-administered program ensures the timely and sufficient distribution of funds to its members. Opting in also shifts the administrative burden such as program costs of processing applications and distributing aid to the state, providing Cloverland’s staff with more time to plan an alternative program if necessary. However, the program will require a monthly charge per residential meter, set by the state for all Michigan electric utilities, which will appear on Cloverland electric bills in the fall.
However, opting in comes with potential drawbacks: higher state-imposed fees and no guarantee that collected funds will be fully returned to Cloverland members. If the first year of the program proves unsatisfactory, the co-op can opt out the following year (April 2026) and establish its own program by October 2026.
This cautious approach gives Cloverland flexibility to determine whether the state’s program meets its members’ needs before making a long-term commitment. The state will announce the LIEAF rate in the coming months (historically 87 cents) and Cloverland will provide additional details about the program in an upcoming issue of Cloverland Connections, Cloverland.com, bill messages, email and Facebook.