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Summer Peak Rate
The updated standard rate for all customers
You could lower your bill by shifting when you use electricity
Introducing the Summer Peak Rate
As we work toward a cleaner energy future, we developed the Summer Peak Rate in collaboration with the Michigan Public Service Commission and other Michigan utilities. This is an update to our standard residential electric rate that encourages you to lower your bill by taking advantage of lower-cost electricity available at certain times of day.
Most customers will see less than a $2 increase in their monthly bill, without changing when or how they use electricity.
See How It Will Impact Your Bill
See How It Will Impact Your Bill
What is this New Rate?
With this new rate, when you use electricity can be just as important as how much you use.
The Summer Peak Rate includes a peak period from June 1 through September 30. The peak period consists of “on-peak” and “off-peak” rate prices:
- “On-peak” rate price From 2 to 7 p.m., Monday through Friday, the electricity rate will be about 1.5 times higher than the “off-peak” rate price.
- “Off-peak” rate price Customers will pay a lower rate price for electricity used outside of on-peak times and during the non-summer months of October through May.
We’re encouraging customers to save money by reducing electricity use during this on-peak time, or shifting use to mornings, nights and weekends.
Save Even More With These Programs and Tips
Want to Optimize Your Energy Use and Save Costs?
Explore additional savings and participate in Michigan’s clean energy future by adding any of these programs to your rate.
FAQs
The actual rates during summer months (June 1 through September 30) will be $0.149656/kWh on weekdays from 2 to 7p.m. and $0.100649/kWh for all other times of the day and on weekends. During non-summer months, there will be a flat rate of $0.100496/kWh.
As temperatures rise in the summer, so does the demand on the electric grid. With increased demand comes an increase in cost. That’s why on weekdays from 2 pm to 7 pm, June to September, electric rates will be higher – and we encourage you to take advantage of lower-cost energy available at other times of day (“off-peak”).
You will be charged a flat rate (the same structure as today) for all other months (October to May).
The Summer Peak Rate only applies to the residential 1001 rate. Most businesses are not on the residential rate, and therefore will not be included. However, in some cases businesses have accounts on residential rates. You can check monthly billing statements to see if your account is on the Summer Peak Rate.
Peak Power Savers programs take precedent over the Summer Peak Rate during Demand Response Event Days only (which you will be notified of). Outside of the event days, the rate prices from the Summer Peak Rate will still be in effect. You will continue to receive your annual rebates from your Peak Power Savers Program.
No action is needed on your part. The Summer Peak Rate is not an optional program, and you don’t have to sign up. If we notified you, you will be automatically transitioned to the updated rate on June 1. Check your bill for rate code 1001 to confirm. If you have a different rate code, the transition will not impact you.
No, Consumers Energy will not be collecting more money under this new rate structure. Some customers may pay less on their bills while others may pay more, but we do not anticipate an increase in overall revenue.