If you’re like most people, you wait until you get the coupons from the grocery store before you do your weekly shopping and make purchases based on what is on sale.

You fill up on gas during the week, when it’s usually less expensive.

You wait until the next “biggest sale ever” before you buy new clothes for the changing seasons.

As consumers, we can choose when we purchase things – and there is almost always a less expensive option, usually when demand is less. 

This model is also applicable to utility rates. Our Summer Peak Rate begins June 1 for residential customers. Under the previous rate structure, pricing was higher in the summer – no matter what time of day you used energy. With the Summer Peak Rate, you have more control of your energy use and bill by taking advantage of lower cost energy when you shift your use away from the peak hours.

  • “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 ($0.23/kWh).  
  • “Off-peak” rate price: Customers will pay a lower rate ($0.178/kWh) for electricity used outside of on-peak times. You will be charged this lower rate 24/7 October through May.

When you reduce your energy use during the on-peak time or shift use to mornings, nights and weekends you will not only potentially lower your electric bill but also help protect the environment. 

These changes are part of our Clean Energy Plan, which puts Michigan on a path to a smarter energy future. We all know the cleanest (and cheapest) electricity is that which we don’t use – which is why you could be rewarded with a lower bill by reducing your electricity use during on-peak periods this summer. If we can make small changes to reduce energy use, we’ll eliminate the need to make expensive changes in the future, like building new power plants.

If you’re feeling overwhelmed, here are a few small changes you can make that can have a big impact on your energy use and bills:

So, going back to the shopping example from the beginning. Price is often driven by supply and demand. If you buy a new summer wardrobe in May, you’re going to pay higher prices – and experience less sales, because everyone is shopping for the same thing. But if you buy your summer wardrobe in August or September – at the end of the season, you’ll find deep discounts and plenty of sales.

And the good news is, with the Summer Peak Rate you don’t have to wait months to realize the discount – you just need to shift your energy use away from the highest demand hours of the day.

Okay, let’s wrap it up by getting real – many people might be wondering, “and what if I don’t?” Well, that’s okay. Most customers who do not shift their energy use to off-peak times will see a bill increase of approximately $2/month or less. And remember…the discounted rate is available all weekend, so you won’t have to worry about shifting your use or changing habits on Saturday and Sunday when many of us catch up on the chores we haven’t had time to tackle during the week.

For more information, visit ConsumersEnergy.com/summerrate. You can also learn more about additional steps we’re taking to protect our environment by visiting https://www.consumersenergy.com/company/clean-energy.

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Hey Consumers Energy! Why are my rates higher in the summer?