Contribution in Aid of Construction

Helping your business grow

In most cases, we no longer require an upfront deposit from business customers needing additional electric distribution infrastructure for new loads of 1,000 kilowatts or more.  Traditionally, customers who needed a substation or electric lines built for such expansions paid the construction deposit, and then gradually recouped that money over a five-year period.

To help relieve customers of the requirement for this deposit, Consumers Energy can now calculate a construction allowance — based on factors such as a customer’s rate, electric demand and contract length – and subtract that from the estimated cost of the project.

Nothing is due if the calculated allowance (see chart below) is greater than the estimated cost. If the allowance is less than the construction cost, the customer is responsible for paying the difference, typically prior to the start of the project.

 

Contribution In Aid of Construction Allowance Schedule

With a Full Sevice Contract , by Contract Terms

General Service Primary Rate GP*

CVL** 1 Year 2 Year 3 Year 4 Year 5 Year No Full Service Contract
1 $0.020/kWH $0.034/kWH $0.050/kWH $0.064/kWH $0.078/kWH $0.02/kWH
2 $0.030/kWH $0.041/kWH $0.060/kWH $0.077/kWH $0.094/kWH $0.030/kWH
3 $0.047/kWH $0.050/kWH $0.072/kWH $0.093/kWH $0.112/kWH $0.047/kWH

 

General Service Primary Demand Rate GPD*

CVL** 1 Year 2 Year 3 Year 4 Year 5 Year No Full Service Contract
1 $80/kW $155/kW $225/kW $290/kW $355/kW $65/kW
2 $125/kW $210/kW $305/kW $395/kW $475/kW $125/kW
3 $170/kW $250/kW $365/kW $470/kW $570/kW $170/kW

 

Metal Melting Primary Pilot Rate MMP

CVL** 1 Year 2 Year 3 Year 4 Year 5 Year No Full Service Contract
1 $10/kW $20/kW $30/kW $35/kW $45/kW NA
2 $30/kW $60/kW $85/kW $110/kW $130/kW NA
3 $40/kW $80/kW $115/kW $150/kW $180/kW NA

 

* See our rates at www.consumersenergy.com/tariffs
** CVL = Customer Voltage Level

If you are considering adding or expanding electric service at your business by 1,000 kW or more, contact us for details on your eligibility for this allowance.  Call our Economic Development Department at (800) 331-9366.

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