Introducing the 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.
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 Will it Begin?
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.
Save Even More With These Programs and Tips
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 $0.149656/kWh on weekdays from 2 to 7 p.m. and $0.100496/kWh for all other times of the day and on weekends.
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.