LANSING — A recent court decision outlawing a $90 million state assistance fund could have a dramatic effect on families struggling to pay heating bills this winter.

A July 21 suit filed by large utility customers and former Michigan Attorney General Mike Cox in the Court of Appeals asserted that the Michigan Public Service Commission utility regulation agency does not have the authority to maintain the fund and to use it to pay non-profit agencies known for helping the poor. 

The PSC had hoped to distribute $80 million to various agencies on October 1 but is now blocked from using the money due to the court decision. The organization had paid out more than $500 million through a fund to help people pay heating bills and conduct energy-saving projects. 

PSC officials say the program could be salvaged by a law that specifically reauthorizes it or after an appeal to the state Supreme Court. The PSC is seeking e-mail comments through Monday at mpscedockets@michigan.gov on possible courses of action. Writers who wish to support the initiative can reference Case No. U-16418.