East Lansing Residents Can Now Claim Share of $8M Settlement From “Franchise Fee” Lawsuit

Earlier this year, the Michigan Supreme Court ruled East Lansing illegally issued a “disguised tax” by having the Lansing Board of Water & Light include a 5% “franchise fee” in bills, money that was then rerouted to the city’s general fund. Now, ratepayers can submit a claim online to collect their portion of the nearly $8 million settlement in the lawsuit.

Yesterday, Monday, July 14, a text was sent to rate payers notifying them of the settlement and providing a link to a website where claims can be submitted. The website linked in the text was confirmed to be legitimate by Matthew Heos of the Abood law firm, which represented the class in the suit, and an employee with Simpluris, the company that is administering the settlement distribution.

East Lansing residents who paid BWL electric bills between April 2, 2019 and April 30, 2025 are likely eligible to receive a settlement.

The website, eastlansingelectricsettlement.com, contains information about the background of the lawsuit, important legal documents, FAQs and contact information for residents who need help filing a claim.

To submit a claim, residents must provide the unique ID and PIN given to them. Those who have not received a notice of their PIN and ID, but believe they are eligible, can email info@EastLansingElectricSettlement.com or call (833) 360-6858 to receive assistance.

Claims must be submitted by Sept. 2, 2025, according to the website. The site says claims are “expected to be over $500.00 but may be larger or smaller depending on the number of claims.”

A final approval hearing for the settlement is scheduled for Oct. 10, according to the settlement website.