As the new year begins on January 1, 2026, thousands of households in the state of Michigan will see an automatic $250 credit applied to their accounts with Consumers Energy. This initiative is designed specifically to ease the burden of rising heating costs during the cold winter months.
Purpose of the Program
This effort is part of the state’s “Energy Relief Initiative,” created to assist families who face high utility bills when temperatures drop significantly from December through March. Many low-income households struggle to keep up with their electricity and gas bills, and this program aims to ensure no one is forced to endure the cold because they cannot afford to pay.
How It Works: Launch and Mechanics
Under this initiative, Consumers Energy and the Michigan Department of Treasury are partnering to deliver a one-time payment—on average up to $250—which will be credited directly to the eligible customer’s energy account. Importantly, eligible individuals do not need to file a tax return or complete any separate application to receive this benefit.
Eligibility Criteria
If your household meets the following criteria, you could be eligible:
- You must be a customer of Consumers Energy (for gas or electricity).
- Your household income must be below 100% of the Federal Poverty Line.
- Eligibility will be verified automatically using government and utility account data—no forms to fill out.
- If you’d like to check your status or update your details, you may do so on the Michigan Department of Treasury website.
More Help: The CARE Program
Beyond this one-time credit, Consumers Energy offers the “Consumers Affordable Resource for Energy (CARE)” program for longer-term support. Benefits include:
- Fixed monthly payment plans over up to 24 months.
- Gradual adjustment of any existing overdue energy bills if the customer consistently makes on-time payments.
- Free energy-efficiency upgrades for enrolled homes to reduce future bills.
To qualify for CARE:
- Your income must be at or below 60% of the state’s median income.
- The account must be tied to your primary residence.
- Any previous billing or account issues (like theft, fraud, bankruptcy) must first be resolved.
Applications may sometimes be submitted through an approved third-party agency.
Other Available Assistance Programs
The state offers additional supports beyond the $250 credit and CARE program:
- Low Income Home Energy Assistance Program (LIHEAP) for emergency grants and bill relief.
- State Emergency Relief Fund (SER), which provides:
- Up to $600 for typical homes.
- Up to $900 for all-electric homes.
- Available for households with incomes up to 150% of the federal poverty line.
Official Statement
Brian Lewis, Senior Director at Consumers Energy, said:
“We are committed to ensuring these essential funds reach our most needy customers. By helping them keep pace with energy bills, we are taking a step forward towards energy equity for all Michigan residents.”
When and How the Credit Will Be Applied
- The credit starts appearing in customer account statements on January 1, 2026.
- There is no application or tax filing required to receive it.
- If you believe you are eligible but don’t see the credit, you can contact the Michigan Department of Treasury or check Consumers Energy’s account portal for status.
Why It Matters
When winter temperatures plunge, high energy costs can push already strained households into serious hardship. This program doesn’t just give financial relief—it signals that the state is taking responsibility to protect vulnerable families during the coldest months of the year. It also shows how a well-designed policy, together with cooperation between government and utility, can make a tangible difference in people’s lives.
Conclusion
This automatic $250 energy credit, launching on January 1, 2026, offers meaningful support to thousands of Michigan residents facing high winter energy bills. More than just financial assistance, it illustrates how smart partnerships between the government and energy providers can deliver real results for the community. For eligible households, this could be the difference between staying warm or struggling through the cold.
Frequently Asked Questions
What happens if I don’t see the credit in my bill?
If you’re a Consumers Energy customer and meet the income criteria but don’t see the credit applied, check your status on the Michigan Department of Treasury website or contact Consumers Energy’s customer service.
Do I need to file taxes or submit an application to receive the $250 credit?
No. The credit will be applied automatically based on eligibility verified through state and utility data. No tax return or separate application is required.
Can I apply for the CARE program even if I get the $250 credit?
Yes. The CARE program is a separate, ongoing assistance option for qualifying low-income customers (income at or below 60% of state median). If you’re eligible for both, you may take advantage of both supports.
