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.
The Summer Peak Rate is the newest standard electric rate for residential customers.
As part of our Clean Energy Plan, the Summer Peak Rate will:
What is this New Rate?
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:
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:
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:
When Will it Begin?
On June 1, 2020, a peak pricing period goes into effect – giving residents throughout Michigan more control over their electricity use and added personalization in their bills. 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 change in 2020, we gathered feedback from thousands of customers as part of the initial rollout of this rate change in 2019.
In March, a bill impact tool will be available 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.
Yes. Starting in March 2020, residential electric customers on the Summer Peak Rate will begin receiving information about how to prepare for the updated rate that goes into effect on June 1, 2020.
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 in 2020.
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.
The peak period of the updated rate will be in effect from June 1 through September 30 each year, starting in 2020.
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):
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:
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.
An introduction letter will be sent in March 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.