You would need an attorney that is licensed in MI to handle this. 

You really should have legal representation on this; much is at stake here.  Since money is an issue, see if she qualifies for Legal Aid (she well might), or see if they can recommend someone to help you.  Also, check if there is a law school nearby to where thi all occurred; they typically run free/low cost clinics that handle these type cases.  Finally, contact the local Bar Association in the appropriate county; they may have a list of attorneys who will take her case "pro bono" (for free) or at least for a reduced fee based on your income/circumstances. 

As for your daughter's credit report, she can ad a statement that the charges were fraudulently made.  Additonally, depending on the utcome of the case, the utility company may agree to remove any negative notation.