Introducing the Summer Peak Rate
The way we generate, distribute and use electricity is changing. As we work toward a cleaner energy future, we developed the Summer Peak Rate in collaboration with the Michigan Public Service Commission. The Summer Peak Rate encourages you to become more engaged in your electricity use. In turn, we will be rewarding smart energy choices.
This June, most of our residential customers will transition to the Summer Peak Rate - 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.
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:
We’re encouraging customers to save money by reducing electricity use during this on-peak time, or shifting use to mornings, nights and weekends.
Why Was This New Rate Created?
This new approach supports our Clean Energy Plan and puts Michigan on a path to a smarter energy future. Here’s how:
We also partnered with the Michigan Public Service Commission to ensure all our customers understand why this change is necessary and how this will benefit the state of Michigan for years to come.
When Did it Begin?
The Summer Peak Rate took effect for all Residential Customers on June 1 of 2021. Notifications went out months in advance with communications that included ideas on how you can shift electricity use and save money. Program recommendations were also included to help reduce the impact of this rate change.
Save Even More With These Programs and Tips
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.