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4.3.2 UNREGULATED SERVICE CHARGES In compliance with R460.125 of the Michigan Administrative Rules, Grantee must ensure that MEAP funds are not used to pay for unregulated service charges, such as appliance repair or appliance protection programs that may be included in a utility’s monthly electric or gas service bill. R460.125 states, “[a] utility may include charges for unregulated services, such as appliance repair or appliance protection programs, together with charges for gas and electric service on the same monthly bill if the charges for the unregulated services are designated clearly and separately from the charges for the gas or electric service and it is noted that it is an unregulated service. Failure to pay for unregulated service charges may result in the termination of that service but not the termination [or shut off] of the gas or electric service. Example of DTE Energy Non-Covered Service – HPP See Appendix K *See the MPSC website for regulated and unregulated electric and natural gas utilities. 4.3.3 THEFT/FRAUD ON CLIENT’S ACCOUNT Clients who are suspected to have committed fraud or theft cannot be denied MEAP assistance. Utility companies may flag the account for fraud/theft based on a tip or complaint before a formal investigation takes place. MEAP benefits cannot be used to pay for unauthorized or illegal usage. In situations where the provider can identify the unauthorized or illegal usage separately, MEAP may be authorized for the past due or shut off amount, if the household meets all other eligibility requirements. The client must provide proof that they have paid the charges associated with the unauthorized or illegal usage before the MEAP payment can be issued. Grantees who suspect fraud should complete the online form through the Office of Inspector General and inform the MPSC Grant Administrator once the form has been filed. Please refer to Appendix W – DHS-834 Fraud Investigation Request Form. Please refer to Appendix C- Suspected Theft/Fraud Flowchart. 4.4 MEAP CAP For direct energy payments, the general household cap for MEAP allows for payment of up to $3,500 for each qualifying household during the grant period. When determining eligibility for MEAP assistance, you must deduct any prior MEAP assistance benefits issued through the programs above during the fiscal year, from the household’s fiscal year cap of $3,500. Households with a balance exceeding $3,500 should not be automatically denied or turned away. Energy providers may be asked to refund any benefits that exceed that cap amount.