By Ryan K. Kauffman

When a dispute arises between a utility company and one of its business or residential customers, the customer may be at a disadvantage. Dealing with a large utility can be a daunting experience. The company's customer service agents may be unwilling or unable to help, and other employees with more authority may be difficult to reach or unsympathetic to the customer's problem. Given that most customers are unable to go without the services that the utility provides, doing nothing to resolve the dispute, and risking a shut-off in the process, is not an option. As a result, the customer may find it easier to capitulate rather than fight, especially when the amount in dispute is relatively small. However, there is an alternative to throwing in the towel; and, best of all, it is absolutely free.

Simply by dialing 1-800-292-9555, any customer can reach the Michigan Public Service Commission's Complaint and Inquiry Intake Center, a public service that helps utility customers informally resolve disputes with telecommunications, gas and electric companies. The Michigan Public Service Commission ("MPSC") is the administrative agency charged with regulating much of the utility industry in the State, and its Complaint and Inquiry Intake Center will connect the customer to one of its Regulations Officers. Regulations Officers are a dedicated staff of about a dozen individuals, who are trained in working with utilities to fairly resolve all types of customer disputes.

Each Regulations Officer is a specialist, concentrating on issues involving either telecommunications companies or gas/electric companies.  Assuming that the customer has already attempted to work out the dispute with the utility, these friendly MPSC employees are available to help. Regulations Officers cannot assist customers with every dispute with every type of utility. For example, municipally-owed utilities and cell phone companies are outside the regulatory jurisdiction of the MPSC. Still, for the price of one toll-free phone call, the customer can explore this option based on the specific nature of the complaint.

The manner in which the Regulations Officer handles the customer's complaint depends on whether the customer is a business or residential customer and the type of utility that is involved. The Regulations Officer will generally begin by contacting the utility to investigate the customer's complaint and to attempt to find a solution. The person that the Regulations Officer contacts is usually someone in the company with more authority to settle the matter than the customer has talked with before, and with a little luck, the dispute can be quickly resolved to the satisfaction of both parties.

In cases involving gas or electric utilities, the informal dispute resolution process has an additional step for residential customers. Following the Regulations Officer's attempts to settle the matter, a residential customer may request an informal hearing from the utility. The utility will then notify the customer of the date and time of the hearing, as well as its location, which is usually one of the company's local offices. The hearing will be decided by a utility hearing officer, an impartial third party.  The utility covers the cost of the hearing.  If the customer is dissatisfied with the result of the informal hearing, he or she may contact the MPSC, where the Regulations Officer will review the hearing officer's opinion and determine if the matter was correctly decided. Further communications with the customer and the utility may be necessary.  The goal of the Regulations Officer will be to ensure that the customer's complaint is adequately addressed and that the dispute is fairly resolved.
Not all disputes are easily settled. Sometimes these informal procedures will fail, and the customer will choose to proceed with a formal hearing at the MPSC before an administrative law judge. Other times the issues involved will be more complicated and the amount in dispute less trivial. Under such circumstances, it is advisable to contact an attorney who specializes in this type of litigation. Nevertheless, after attempting to resolve a dispute directly with the utility company, the next best step may be to call the Commission's Complaint and Inquiry Intake Center. With this important resource available, utility customers need not feel so disadvantaged in resolving their problems with utility companies.

Mr. Kauffman practices in our Administrative and Governmental Law and Litigation Departments in our Lansing office and may be contacted at 517.377.0881 or by e-mail at rkauffman@fraserlawfirm.com.