How to Use the State of Michigan Energy Draft for Utility Bills

Paying utility bills can be challenging, especially during colder months when heating costs rise. To help residents, Michigan offers an Energy Draft program that provides financial relief by applying state-issued funds directly to utility bills.

Obtaining the Draft

Eligibility is based on income, household size, and energy costs. The Michigan Department of Health and Human Services (MDHHS) administers the program, and applicants apply through the Michigan Energy Assistance Program (MEAP) or the Low-Income Home Energy Assistance Program (LIHEAP). These programs assess financial need and issue drafts to those who qualify.

Recipients receive a physical or electronic draft specifying the amount allocated for energy expenses. This draft is a voucher, not a cash payment, and can only be used with participating utility providers. The amount varies based on income and energy burden—the percentage of income spent on utilities.

To avoid delays, applicants should keep their contact information updated with MDHHS. Errors such as incorrect income reporting or missing documentation can slow processing. Checking application status through MI Bridges, the state’s online benefits portal, helps track progress and address issues promptly.

Submitting the Draft to Utility Providers

Once received, the draft must be submitted to the utility provider for processing. Each provider has specific procedures, which may include electronic submission, mailing, or in-person delivery. Checking with the utility company on their preferred method helps prevent delays.

Some providers require recipients to sign the draft or include an account number for proper application. If mailing, using certified mail with tracking provides proof of delivery. For electronic submissions, saving a confirmation receipt from the utility company serves as documentation in case of discrepancies.

Processing times vary, and it may take several business days for the funds to be applied. If the draft is not reflected on the account within the expected timeframe, contacting customer service with submission details can help resolve the issue. Many utility companies allow customers to check payment postings online.

Applying the Draft Toward Your Utility Bill

Once processed, the Energy Draft amount is deducted from the total balance. Some utility providers apply the draft immediately, while others reflect it on the next billing statement.

If the draft covers the full amount due, no further payment is needed for that billing period. If it only offsets part of the balance, the remaining amount must be paid before the due date to avoid late fees or service disruptions. Reviewing the next statement ensures the credit was applied correctly.

If the draft exceeds the amount due, the surplus may be carried over as a credit for the next billing cycle. Some providers may issue a refund. Contacting customer service clarifies how overages are handled.

Handling Any Remaining Balance

Any remaining balance must be paid by the due date to avoid late fees or penalties. Utility companies typically charge a percentage of the overdue balance as a penalty, often ranging from 1% to 5% per month. Reviewing the provider’s late payment policy helps avoid unexpected charges.

For those struggling to pay, many energy providers offer budget billing programs that average usage over the year for predictable monthly payments. Some companies also provide short-term payment plans, allowing customers to pay in installments.

If the balance remains unaffordable, additional assistance programs may be available. Nonprofits, community action agencies, and local government relief funds sometimes offer aid to prevent disconnections. Michigan 2-1-1, a statewide resource, can help locate emergency utility assistance programs.

Keeping Accurate Payment Records

Maintaining records of Energy Draft transactions helps prevent disputes. Tracking payments, including the date the draft was submitted and when it was applied, ensures the assistance was processed correctly.

Utility companies typically provide payment confirmations through account statements or online portals. Saving copies of these statements, along with any correspondence related to the draft, creates a clear financial history. Organizing records by billing cycle or payment date makes it easier to reference past transactions. Keeping both digital and physical copies ensures information is accessible even if one format is lost.