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Electric bills in Michigan are rising, just in time for summer

Electric bills in Michigan are rising, just in time for summer

  • Summer rates for DTE and Consumers Energy begin Saturday and will be in effect through the end of September
  • The higher rates are intended to encourage customers to use less electricity during peak hours.
  • DTE customers will pay about 22 cents per kilowatt during peak hours, while Consumer customers will pay about 21 cents.

Michiganders can expect to see an increase in their electricity bills as summer rates go into effect for DTE and Consumers Energy, the state’s two largest utility companies.

The summer rates, which began Saturday and will be in effect through September, are part of a pricing plan that utilities began implementing several years ago, according to the Michigan Public Utilities Commission, called “time-in” rates. use”.

Under this plan, customers are charged higher rates during peak hours, but those peak hour rates increase during the summer.

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The upcoming rate increase comes as the National Oceanic and Atmospheric Administration’s Climate Prediction Center says there is a 40% to 50% chance the state will experience above-normal temperatures throughout the summer.

For consumer customers, peak hours from June to September are weekdays from 2 to 7 pm. Customers’ electricity will cost about 5 cents more per kilowatt-hour, compared to off-peak hours. But during the rest of the year, electricity costs about 1 cent more per kilowatt-hour during peak hours.

DTE customers pay about 7 cents more per kilowatt-hour during peak hours in the summer months, which are 3 p.m. to 7 p.m., compared to 2 cents more per kilowatt-hour during peak hours elsewhere. time of the year.

With summer increases, Consumers customers can expect to pay about 22 cents per kilowatt-hour during peak hours. Off-peak and on weekends, customers will pay approximately 16 cents per kilowatt-hour.

“The timing of rates in effect for Consumers Energy and going into effect for DTE Electric customers were directed by the MPSC,” Matt Helms, public information officer for the commission, told Bridge Michigan. “For several years now, the MPSC has encouraged utilities to address the fact that the cost of producing electricity or purchasing it on the market varies depending on the time of day and day of the week, as well as the time of year. anus”.

DTE customers will pay 22 cents per kilowatt-hour during peak hours from June through September and about 17 cents per kilowatt-hour during off-peak hours.

“Time of day” rates, a mandate from the Michigan Public Utilities Commission, allow DTE to manage power delivery, according to the utility’s website.

The company recommends customers run their dishwasher at night, do laundry on weekends, install smart power strips, and set the thermostat during peak hours to save money on their electric bill.