EAST LANSING, Mich — The City of East Lansing announced Friday that it approved a tentative settlement in the Lansing Board of Water and Light franchise fee case.
WATCH: City of East Lansing announces tentative settlement in franchise fee case
In a February ruling as part of a class action lawsuit, the Michigan Supreme Court ordered the city to stop collecting a 5% franchise fee on electricity bills in the City of East Lansing by LBWL from 2017 to 2025.
As part of the settlement, the city will have to create a reimbursement fund of $7.8 million, while will be used to reimburse class members and pay for legal costs from the plaintiffs in the case.
A website with final settlement information is required to be created as part of the settlement as well, and a "third-party reimbursement entity" will notify eligible class members. The city says eligible class members include East Lansing ratepayers who paid LBWL franchise fees in the city from April 2, 2019 until April 30, 2025.
The city says reimbursement amounts will be determined by a formula to be approved by the Circuit Court, and the city will not be the ones processing reimbursements.
