This month's Behind the Meter episode of the MPSC podcast discussed the pervasive topic of utility scams — an increasingly common approach used against residents to fraudulently collect personal and financial information. Hosted by Mike Burn, the discussion featured MPSC Chair Dan Scripps and Monica Martinez, a nationally recognized expert in utility scams and a former member of the Michigan Public Service Commission (she served from July 3, 2005 through September 2, 2011). Martinez defines utility scams as people impersonating utilities, 'or government agencies or charitable organizations,' telling victims they need access to their information to provide or maintain service.
Scripps shared his surprise, coming into the industry, at the prevalence of utility scams: 'Well, that's where the money is, and everybody has utility services… and as a result everybody has that utility bill that's due.' Unlike a package in the mail, a utility bill is something people are always expecting — and frequently anxious about, fearing a potential shutoff. 'People want to avoid having their service shut off,' he continued. 'It is one of the things that feels like low-hanging fruit if you're a scammer.'
'No one wants to risk being shut off,' Martinez added. 'When people are busy doing other things… that's just the prime circumstance for catching folks off-guard into thinking they've missed a payment or they need to disclose information' — just to avoid losing access to an essential utility. Burn noted the exploitation of 'fear or vulnerability,' feelings that shouldn't be tied to a ratepayer's relationship with their utility, but often are. He then asked whether consumers can better recognize a scam.
Martinez highlighted tactics like feeling pressured or bullied by the caller: 'That communication is usually pressuring somebody to do something immediately, and they start to badger them — if you don't do this, you will lose that essential service.' Most companies typically aren't demanding immediate payment, Social Security numbers, or account information, and Scripps reminded listeners to trust that 'gut feeling': 'Is this the way your utility usually interacts with you?' Unfortunately, for many low-income households with high energy burdens — paying more than 6% on combined utility costs — receiving threats of shutoff isn't uncommon.
No one wants to risk being shut off. That's the prime circumstance for catching folks off-guard. — Monica Martinez
The tone of a shutoff notice — whether by postal mail, email, or automated call — carries a sense of urgency the recipient feels as discomfort, fear, and pressure. Low-income, elderly, and disabled ratepayers are at higher risk of being shut off on any given day, and as a result are at much higher risk of falling victim to these scams. Scripps suggests that those questioning the legitimacy of a notice call their utility using verified numbers. For some, prior negative experiences and conflicting work schedules make that less viable.
One might think locating a utility's verified number is as simple as a Google search, but Martinez described a newer tactic: scammers skewing search results by paying for ads to appear at the top. 'Last year we had a lot of search-engine scams… individuals were falsifying how you pay a utility bill. This happened with many utilities across the country… and they were purchasing ads on the search engines, and those were rising to the top.' As technology advances, scammers can replicate every aspect of a utility — from site links to phone hold music and recorded messages. 'If you'd asked me five years ago, I'd have told you to look for spelling errors, the salutation, the closing, the grainy image. I'm not even talking about that today,' she emphasized.
Some resources shared with listeners included Utilities United Against Scams and the Federal Trade Commission. It can be frustrating to live in a world where the constant threat of shutoff — and the fear of losing essential, life-sustaining services to billion-dollar companies — makes us vulnerable to fraudulent actors.
While this can feel disheartening for residents trying to keep up with their energy bills amid DTE's proposed $574 million rate increase, there's a silver lining. We Want Green Too is an active advocate for a just energy future. One of our most supportive partners, the Energy Equity Project (EEP) — launched out of the University of Michigan's School for Environment and Sustainability — advocates for 'a world in which there are no energy shutoffs and all people have community-controlled, affordable, reliable, clean energy.' EEP equips frontline organizations like WWGT with the tools and expertise to fight rate hikes, challenge inadequate payment programs, address misrepresentative energy data, and expand — rather than pull back on — shutoff protections and moratoriums.
Shut-off moratoriums offer critical protections for vital utility services, and they aren't a novel concept. They were temporarily put in place across several states during the pandemic — seventeen states issued statewide suspensions on gas, electric, and water shutoffs. Yet during that same time, DTE Energy conducted more than 80,000 shutoffs in 2020, and more than double that the following year. Moratoriums give ratepayers the breathing room to adjust to fluctuating crises — which are only worsened by the loss of utilities — and shield consumers from predatory threats to these vital services.
