New summer electricity rates for DTE, Consumers start as temps soar

New summer electricity rates go into effect this week for DTE Energy and Consumers Energy customers across the state, just as temperatures are expected to hit 90 degrees for the first time this year.

The increased summer rates kick in Thursday, June 1, and last until the end of September, making it more expensive to use electricity during the late afternoon and early evening hours.

This week's seasonal change is part of a new pricing mechanism, required by Michigan's utility regulators, 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.

For DTE customers, electricity will cost $0.2098 cents per kilowatt hour during peak hours, which have been set at 3-7 p.m. Monday through Friday. The rest of the year, from October 1 through May, the peak hour pricing is set at $0.1675. Outside of those weekend peak hours, customers will be charged a lower rate of $0.1545 per kilowatt hour.

Consumers customers will also see the summer rates go into effect on weekdays starting on June 1 between the hours of 2-7 p.m. During those peak hours, users can expect to pay $0.158 per kilowatt hour. The rest of the day and on weekends, the off-peak rates are set at $0.103 per kilowatt hour.

The off-peak rates stay the same year-round for both companies.

"With this rate, when you use electricity can be just as important as how much you use," Consumers explained on its website, where it breaks down the pricing mechanism for its customers.

"We’re encouraging customers to save money by reducing electricity use during this on-peak time, or shifting use to mornings, nights and weekends."

The new rate structure for DTE and Consumers customers stem from rulings by the Michigan Public Service Commission mandating that the companies transition to the time-of-day pricing mechanism. The goal is to align rates with the actual cost of producing electricity at different times, according to the Michigan Public Service Commission.

The start of the summer peak period for DTE and Consumers customers will set in just as summer weather has finally arrived in Michigan. So far this week, temperatures have been in the high 80s and could hit 90 degrees Thursday, according to the 7-day forecast from the National Weather Service in Detroit.

According to the weather service, the area will see afternoon winds, which could help people who want to reduce their air conditioning use during peak hours. By Sunday, temperatures are expected to dip back into the 70s and 80s.

Both utilities have provided tips for customers navigating the peak pricing model and higher summer rates.

According to Consumers, raising your thermostat 5 degrees for 8 hours during the day can help people cut costs on your bill. Turning down the air conditioning during the peak period will maximize those savings, the utility says. Cleaning the filters on an air conditioning unit can allow it to run more efficiently, which in turn can help keep energy bills down.

Users hoping to avoid a jump in their electricity bill are also advised to consider changing when they use major appliances like their dishwasher or laundry machines. Delaying your chores until later in the night, when electricity rates drop, can help keep bills down.

DTE recommends similar lifestyle changes for its customers. The company also offers some tools to help its users. Customers can get more personalized recommendations on the company's website.

Consumers Energy customers can also find more information and tips on the utility's website.