ANN ARBOR – Just in time for summer temperatures in Michigan, DTE Energy and Consumers Energy upped on June 1 electricity prices, so called “time of day” charges, meaning if you use electricity in the middle of the day Monday through Friday you will pay more.
For DTE customers, higher rates are in effect between 3 p.m. and 7 p.m., Monday through Friday, June through September. For Consumers’ customers, peak rates are from 2 pm to 7 pm Monday through Friday, June through September.
Kate Mitchell, DTE Energy spokesperson, said she could not provide an average extra cost per household for higher peak time rates. A slightly lower peak time of day rate increase started March 1 and now has been replaced with rates about 25 percent higher. The DTE rates are below:
Off peak: 15.45¢ per kWh (20 hours per weekday and all weekend)
On peak October – May: 16.75 cents per kWh
On peak June – September: 20.98 cents per kWh
A press release from Consumers Energy said: “Most customers will only see a small increase in their monthly bill, without changing when or how they use electricity.”
During those peak hours, Consumers customers can expect to pay 15.8 cents per kilowatt hour. The rest of the day and on weekends, the off-peak rates are set at 10.3 cents per kilowatt hour. For Consumers’ customers, peak rates are about 33 percent higher.
This week’s seasonal change is part of a new pricing mechanism required by the Michigan Public Service Commission, known as “time of use” rates.
Under the program, customers of the two utility companies are charged higher prices for the energy they use during peak hours, with an added increase in the summer months, meaning that anyone wanting to crank up their air conditioning during the peak periods will see costs spike.
