East Lansing $7.8M Electric Franchise Fee Settlement

Consumers who paid franchise fees to the city of East Lansing through their electric service from the Lansing Board of Water and Light between April 2, 2019, and April 30, 2025, may qualify to claim a cash refund from a class action settlement.

The city of East Lansing agreed to pay $7,800,971.13 to resolve a class action lawsuit alleging it improperly collected franchise fees from electric customers. The lawsuit claimed these fees were unlawful taxes imposed in violation of Michigan law and the state constitution.

Who can claim an East Lansing payment?

Class members must meet all of the following criteria:

• They paid franchise fees to the city of East Lansing through payments to Lansing Board of Water and Light for electric service.
• The payments occurred between April 2, 2019, and April 30, 2025.
• The electric service address is located within the city of East Lansing.

The class includes both individuals and entities. If class members received a notice about this settlement, it is because LBWL’s records indicate they paid for electric service during the class period and thus paid the franchise fees.

How much can class members receive?

Pro rata payment: The total settlement fund is $7,800,971.13. After deducting attorneys’ fees, litigation expenses, settlement administration costs and a service award to the class representative, the settlement administrator will distribute the remaining fund to class members who file valid claims.

The amount each class member receives depends on the proportion of electric charges they paid during the class period compared to the total paid by all claimants. Each claimant’s share is proportional to their payments.

The official settlement website currently estimates that payments will be more than $500, but the actual amount may be higher or lower depending on the number of claims submitted and the total amount paid by all claimants.

How to claim a Lansing Board of Water and Light settlement payment

Class members can submit the online claim form or download, print, complete and mail the PDF claim form to the settlement administrator. The claim deadline is Sept. 2, 2025.

Settlement administrator’s mailing address: East Lansing Electric Settlement, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799

Only one claim form may be submitted per class member per service address.

If a customer has more than one eligible service address, they may file a separate claim for each address.

What information is needed to submit a claim?

To file an online claim, class members must provide the unique ID and PIN printed on the settlement notice they received. Those who are unable to locate their unique ID and PIN should contact the settlement administrator at info@EastLansingElectricSettlement.com or 833-360-6858.

Payout options

• PayPal
• Venmo
• Zelle
• Virtual prepaid card
• Paper check

$7.8 million settlement fund

The $7,800,971.13 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $2,600,323.71
• Attorneys' expenses: To be determined
• Service award to class representative: Up to $30,000
• Payments to class members: Remainder of the fund

Important dates

• Opt-out deadline: Aug. 26, 2025
• Claim deadline: Sept. 2, 2025
• Final approval hearing: Oct. 10, 2025

When is the franchise fees payout date?

Payments will be distributed after the court grants final approval of the settlement and any appeals are resolved.

Why was there a class action settlement?

The class action lawsuit alleged the city of East Lansing improperly imposed franchise fees on electric service, which plaintiffs claimed were unlawful taxes in violation of the Headlee amendment to the Michigan Constitution, the Prohibited Taxes By Cities And Villages Act and other state laws. The Michigan Supreme Court ruled the franchise fees were unlawful taxes for the period after April 2, 2019, prompting the parties to reach this settlement.

The city denies any wrongdoing but agreed to settle to avoid further litigation costs and uncertainty.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ