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Summer Peak Rate
The way we generate, distribute and use energy is changing. As we work toward a cleaner energy future, we’re encouraging customers to become more engaged and take control of their electricity use – and in turn, rewarding smart energy choices. This requires a change in the way we charge for electricity.
The Summer Peak Rate is the newest standard electric rate for residential customers, and is an important part of our Clean Energy Plan.
Rate Code on Your Bill: 1001
Due to COVID-19, Peak Pricing has Been Delayed Until 2021
Given the economic challenges associated with the COVID-19 pandemic, we are delaying the implementation of the summer peak pricing period until 2021.
While you will still see this rate code (1001) on your bill, we will not be moving forward with the peak pricing for this summer as initially communicated. You will instead have a flat rate for electricity throughout the remainder of 2020.
Summer Peak Rate at a Glance
You Get More Control Over Your Bill
Now when you use electricity can be as important as how much you use. Simply shifting electricity use a few hours could help lower your bill.
You Get Rewarded for Shifting Use
If you shift when you use some electric appliances, like your air conditioner or dryer, your energy costs will be lower.
You Help Create a Cleaner Future for Michigan
This new approach supports our Clean Energy Plan, and will help us generate 90% of our power with renewable energy by 2040.
Designed with our customers and Michigan in mind, this update to the standard residential electric rate aligns with our Clean Energy Plan. The Summer Peak Rate encourages you to take advantage of lower-cost energy available at certain times of day to help lower your bill.
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, your electricity rate will cost 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. This is the same rate you would pay 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.
With this new rate, when you use electricity can be just as important as how much you use.
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:
- By reducing energy use during on-peak times, you can lower your electric bill.
- By changing how we consume electricity under our Clean Energy Plan, we will be able to avoid building new power plants.
- We have made a commitment to the planet – no more coal use and quadrupling the clean energy we provide. But we all play a role, and the cleanest form of energy is the energy we don’t use.
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.
Benefits of the New Rate:
- You have more control of your electricity use and monthly bills.
- You will be rewarded when you reduce your electricity use during on-peak periods.
- Together we’re supporting Michigan’s shift to clean, renewable energy.
When Will it Begin?
Due to COVID-19, Peak Pricing has Been Delayed Until 2021
Given the economic challenges associated with the COVID-19 pandemic, we are delaying the implementation of the summer peak pricing period until 2021.
While you will still see this rate code (1001) on your bill, we will not be moving forward with the peak pricing for this summer as initially communicated. You will instead have a flat rate for electricity throughout the remainder of 2020. The peak pricing period will be in effect from June through September each year moving forward.
All residential electric customers* will be notified months in advance with communications that include ideas on how you can shift electricity use and save money. Program recommendations will also be included to help reduce the impact of this rate change.
To provide the best customer experience for this rate, we gathered feedback from thousands of customers in 2019.
A bill impact tool will be available in 2021 so you can see how the rate change will specifically impact your bill and help you find opportunities to save. Make sure you create a Consumers Energy Account if you don’t already have one.
*Some customers with exceptions will move to the updated rate later in 2020.
Save Even More With These Add-Ons
Explore additional savings and participate in Michigan’s clean energy future by adding any of these programs to your rate.
FAQs
Yes. Starting in March 2020, residential electric customers on the Summer Peak Rate began receiving information about how to prepare for the updated rate that was scheduled to go into effect on June 1, 2020. However, due to COVID-19 we will now delay the Peak Pricing component of the new rate until June 1, 2021.
Approximately 3% of our residential customers were on the updated rate in 2019 as part of the initial rollout to help us optimize the customer experience.
From 2 to 7 p.m. on weekdays (Monday-Friday) in the summer months from June 1 through September 30, the standard rate for electricity will be higher than other times of day. This replaces our standard inverted block rate from June to September, which charged a higher rate when customers used over 600kwH per month.
An online bill impact tool and other tips will be available to help you estimate your unique costs. Based on what we know today, the average customer will see less than a $4 change to their monthly summer bill. However, if you’re able to shift your electricity use to periods of low demand (“off-peak”), you can lower your costs.
All residential electric customers* will be on the new rate in 2020. If you are on the new rate, you likely received some type of communication from Consumers Energy. Beginning with your January 2020 statement, the back of your bill will show "Rate Code: 1001" if you are on the new residential electric rate.
However, due to the economic ramifications of COVID-19 the Peak Pricing component of the new rate will be delayed until June 1, 2021.
*Some customers with exceptions will move to the updated rate later in 2021.
The peak period of the updated rate will be in effect from June 1 through September 30 each year, starting in 2021.
Electric prices during this period of high demand (“on-peak”) will be approximately 1.5 times higher than the price of electricity during off-peak periods. The actual rates will be $0.143752/kWh on weekdays from 2 to 7 p.m. and $0.096781/kWh for all other times of the day. The Summer Peak Rate replaces the current standard summer rate period that charges an increased price when customers use more than 600kwH per month.
Managing your energy use during periods of high demand (or “on-peak” periods) does not require extreme measures such as shutting off your A/C completely, not watching television, or sitting in the dark. Understanding which home devices use higher amounts of electricity can help you better manage your behaviors throughout the day and allow you to take small steps to lower your electricity use and bill. See below for a list of devices and appliances that typically use the most energy (starting with the highest consumers):
- Cooling and heating
- Water heater
- Washer and dryer
- Lighting
- Electric oven
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 to 7 p.m., 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”).
There are many programs and tools available to you to help prepare for the transition. Some examples include:
- Bill Impact Tool – A bill impact tool will be available before the new rate begins on June 1 to help you understand the impact the peak period will have on your overall electricity bill.
- Budget Plan – Divide your annual energy costs into equal monthly payments and make your household budget easier to manage.
- Enhanced Energy Insights – A new energy analysis tool is available, replacing the previous Energy Insights portal. Enhanced Energy Insights will help you better understand your energy use and give you suggestions on how to reduce your energy bill.
Home Energy Efficiency Programs and Products – Save energy, earn rebates and create a more comfortable home with our variety of energy efficiency programs.
You will be charged a flat rate (the same structure as today) for all other months (October to May).
All customers on the standard residential rate (1000) will transition to the Summer Peak Rate (1001). Most businesses are not on the residential rate, and therefore will not be included. However, businesses that are currently on the 1000 rate will transition to the new rate (1001). You can check your monthly billing statement to see if your account(s) is on this rate.
Introduction letters will be sent to notify customers about which accounts are impacted. Only the accounts noted in the letter and on the bill impact tool are impacted by the new rate.
Yes. If you are still an electric customer with Consumers Energy, you will have the Summer Peak Rate at your new home.
The devices that use the most energy in a typical month during the summer are window or central A/C cooling systems, electric water heaters, dishwashers, and clothes washers & dryers.
- Visit our Life Support page to see what options you may have if you have medical equipment in your home.
- Since medical equipment use, such as oxygen tanks, can vary depending on your situation, we recommend you use our online bill impact tool to determine what the rate change impact will be to you. This can be found on your profile dashboard after logging into your online account.