The Family Independence Agency began a pilot project in September with three utility companies to avoid energy shut-off notices for FIA clients. This program, called Energy Direct, is a collaboration of the FIA, Detroit Edison and Michigan Consolidated Gas – known as DTE – Consumers Energy and SEMCO Energy Gas Company.

"This initiative has three goals," said FIA director Marianne Udow. "Reduce administrative overhead for our agency and the energy providers, provide seamless service to FIA cash assistance customers, and reduce work for FIA case specialists."

Under the pilot, the FIA will match cash assistance clients against shut-off statements from the areas served by the three providers. When a shut-off notice is processed, the FIA will pay the invoice – up to a maximum of $550 – and the shut-off notice will not be sent to the client’s home. Under terms of the agreement, shut-off will be avoided for 30 days.

"DTE Energy is thrilled about this new program and the opportunity to assist our customers when they need it the most," said Carolyn Mackool, DTE energy assistance manager. "The outstanding partnership and creativity we encountered with the Family Independence Agency and the other utilities to establish this program exemplifies how organizations can collaborate to improve the lives of Michigan's citizens."

FIA clients receiving Family Independence Program, Supplemental Security Income and Food Assistance Program benefits are eligible for Energy Direct, as well as certain households that received emergency assistance from the agency. The FIA will notify clients when a shut-off notice has been paid and refer them to local weatherization services to help reduce their energy consumption in the future.

"Energy Direct is an outstanding example of the power of collaboration," said Debra Harmon, Consumers Energy's manager of assistance programs. "It's truly a lifeline for our FIA cash assistance customers who are facing energy service shut-off. We are honored to be a partner in this pilot program with the FIA and other energy companies in Michigan."

The project will be piloted from November 2004-September 2005 for families served by DTE, SEMCO and Consumers Energy. The three companies currently have about 234,000 accounts with FIA customers.

If successful, the project will be expanded statewide next year. Low-income households not served by this pilot may continue to file applications for State Emergency Relief (SER) in local FIA offices to resolve utility shut-off notices.

The pilot involves no new funds and will expend funds from the SER account. In addition, the project is supported by $34 million in federal Low Income Energy Assistance Program funds and supplemented with other state and federal dollars.

"This project represents a collaboration between energy companies and state government to better serve low-income citizens," Udow said. "We are grateful to our utility partners for their cooperation, which will result in more direct service to clients and less paperwork for everyone including FIA case specialists."