Michigan Public Service Commission raising credit to $40 a day for lengthy power outages

(CBS DETROIT) - The Michigan Public Service Commission (MPSC) announced it was raising the credit for residents impacted by lengthy power outages to $40 a day.

The commission says the credit is automatically applied to customers' accounts if they meet the threshold, according to a news release. It kicks in after 96 hours during catastrophic conditions or when 10% or more of its customers are without power.

The credit is also applied to the accounts after 48 hours "during gray sky conditions affecting between 1% and 10% of a utility's customers and after 16 hours during normal conditions."

"We understand that the outage credit won't cover everything lost when the power goes out, but the credit will help customers while encouraging utilities to do all they can to restore service quickly," MPSC Chair Dan Scripps said in a statement. "The credits are one tool the MPSC is using to encourage utilities to improve the power grid to better withstand increasingly frequent extreme weather and restore power as rapidly as possible after outages."

The increase comes after hundreds of thousands of Michiganders recently experienced a power outage due to severe storms in Metro Detroit. More than 200,000 DTE customers were without power on Aug. 27, leaving behind storm damage and downed power lines .

MSPC says prior to 2023, customers were eligible for a one-time $25 credit. The credit was then increased to $35 before the commission raised it again to $38 in September 2023. MSPC is required to adjust credit each year.