Frequently Asked Questions

1. Why am I receiving the Notice?

A Settlement has been reached with the City of East Lansing (“the City”) in a class action lawsuit. The lawsuit claimed that the City’s electric service franchise fees were actually an improper tax. The City denies that it did anything wrong, and the Court has not decided who is right. The parties have agreed to settle the lawsuit (“Settlement”) to avoid the risks, disruption, and uncertainties of continued litigation. A copy of the Settlement Agreement is available here.

If you received notice, it is because the LBWL’s records indicate that you paid the LBWL for electrical service between April 2, 2019, and April 30, 2025, and thus paid the Franchise Fees and are therefore a member of the Class.

2. Who is included in the Settlement?

The Court has defined the Class this way: “All persons or entities who/which paid Franchise Fees to the City through the payment to the Lansing Board of Water and Light for electric service (“Electric Service”) at any time between April 2, 2019, and April 30, 2025.”

The Court has appointed experienced attorneys to represent the Class.

3. What are the Settlement benefits?

The City has agreed to create a Settlement Fund of $7,800,971.13. Part of the Settlement Fund will be used to pay attorneys’ fees and related costs of litigation and administration. All the rest of the Settlement Fund will be divided between Class Members who file a claim.

These payments are currently expected to be over $500.00 but may be larger or smaller depending on the number of claims.

4. How do I receive a refund payment?

The easiest way to file a claim is online. You may also complete the tearaway Claim Form that was mailed to you and drop it in the mail; postage is already paid. Claims must be submitted online or mailed by September 2, 2025.

5. What if I don't want to participate in the Settlement?

If you do not want to be part of the Settlement, you must exclude yourself by August 26, 2025, or you will not be able to sue the City for the claims made in this lawsuit. If you exclude yourself, you cannot get benefits from this Settlement. If you want to object to the Settlement, you may file an objection by August 11, 2025. The Settlement Agreement, available here, explains how to exclude yourself or object.

6. When will the Court approve the Settlement?

The Court will hold a hearing in this case on October 10, 2025, at Ingham County Circuit Court, 315 S Jefferson, Mason, MI 48854 to consider whether to approve the Settlement. The Court will also consider Class Counsel’s request for attorneys’ fees of one-third of the Settlement Fund, plus litigation costs, and $20,00.00 for Plaintiff. You may attend the hearing at your own cost, but you do not have to.

7. Where do I get more information?

For a more detailed statement of the matters involved in the Lawsuit, including the terms of the proposed Settlement, you are referred to papers on file in the Lawsuit, which may be inspected during regular business hours at the Office of the Clerk of Circuit Court for Ingham County, Michigan. You may also view the Settlement Agreement and other important court documents here.