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DTE peak-summer rate increases kick in June 1st

By Jack Nissen
Published  May 31, 2024 11:19am EDT
Utilities
FOX 2 Detroit

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(FOX 2) - Peak summer rate increases are returning this June for Michigan households as energy demand rises during the warmer months. 

Starting June 1 and lasting until Sept. 30, residents can expect to pay more for energy during the mid-afternoon - the period of time when electricity demand is at its highest. The afternoon is typically when utilities like DTE and Consumers Energy experience peak production for things like air conditioning.

How the rate increase works is, customers that use DTE can expect to pay more for energy used during the hours of 3 p.m. to 7 p.m. on weekdays. And on weekends and during off-peak hours at night and in the morning, it will cost less.

For Consumers Energy customers, the peak-hour summer rate is from 2 p.m. to 7 p.m.

The goal of the rate shift is to incentivize customers to lower their energy usage during hours when it's in higher demand. Any reduction in usage can reduce strain on the respective utility's grid.

The difference in rates comes out to a few cents more per kilowatt-hour. 

DTE Rate:

  • Off-peak hour rates begin at 7 p.m. and are in effect until 3 p.m. the next day - about 20 hours. That includes weekends. Customers can expect to pay $0.16 per kWh.
  • Peak hour rates are from 3 p.m. to 7 p.m. Monday to Friday. - about four hours. Customers can expect to pay $0.22 per kWh from June to September, and $0.18 from October to May.

Consumers Rate:

  • Off-peak hour rates begin at 7 p.m. and are in effect until 2 p.m. the next day - about 19 hours. Customers can expect to pay $0.16 per kWh.
  • Peak hour rates are from 2 p.m. to 7 p.m. Customers can expect to pay $0.21 per kWh from June to September. There is no rate difference between off-peak and peak hours during the winter months.

To put the energy use in context, a kWh will power a refrigerator for a few hours or a space heater for 40 minutes. 

Peak summer rate changes were first implemented in 2023. You can read the Michigan Public Service Commission's explanation for the change here.

Summer rate plans kick in for DTE, Consumers customers

Between the hours of 3-7 p.m. for DTE customers and 2-7 p.m. for Consumers customers, rates will increase to offset the expected spike in energy usage.