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Time-based Pricing

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The cost to produce electricity changes depending on the time of day, week, and year. It costs more to produce electricity on a hot summer weekday, when businesses are open and customers are using air conditioning, than it does on a cool spring weekend, when many businesses are closed and temperatures are moderate. Time-based pricing aligns utility rates with the cost to produce electricity at different times.

Actions to Date

  • DTE and Consumers Energy ordered to implement on-peak rates in previous electric rate cases

Next Steps

  • Work with Consumers Energy (2019-20) and DTE (2020-21) on implementation
  • Stakeholder workgroup to promote customer awareness

Related MPSC Case(s)


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