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As of: 2:24 PM, 7/24/21

Summer Peak Rate

The updated standard rate for all customers

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You could lower your bill by shifting when you use electricity

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.

How will the New Rate Change Things for You?



Although this changes how we think of electricity use, most people will see less than a $2 increase to their monthly bill if they don’t shift when they use electricity.

If you are able to shift your use of some electric appliances (for example, your washing machine, dish washer, air conditioner) to times when demand is lower, your electricity costs will be lower.

When demand is at its highest, weekdays between the hours of 2 and 7 pm, a higher electric rate will be charged (but never on weekends).

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.


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.

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


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.

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