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.

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.

Good news: if you are like most of our residential customers, you’ll see less than a $2/month difference in your bill.

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, 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.

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.

The Summer Peak Rate will take effect for all Residential Customers on June 1 of 2021. You 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.