Consumers Energy Introduces New Summer Peak Rate, Giving Households More Control over Energy Costs

Rhea-AI Summary

Consumers Energy is launching a new Summer Peak Rate effective June 1, allowing 1.6 million residential electric customers in Michigan to lower their energy bills. This initiative, part of the Clean Energy Plan, encourages households to shift energy use away from peak hours, from 2 to 7 p.m. weekdays. Customers may experience an increase of $2 per month or less, with potential savings from energy-efficient practices. The company aims to eliminate the need for new power plants by optimizing energy consumption.

Positive

• Introduction of Summer Peak Rate allows customers to save on energy bills.
• Encourages energy-efficient practices, contributing to sustainability.
• Potential for bill reduction for many households.

Negative

• Some customers may still face a small increase in their bills.

JACKSON, Mich., May 18, 2021 /PRNewswire/ -- Consumers Energy is giving Michigan households the ability to lower energy bills and take meaningful actions to protect the planet with a new standard Summer Peak Rate that will go into effect June 1 for 1.6 million residential electric customers.

The Summer Peak Rate gives customers more control over their energy bills, rewarding them for taking advantage of lower-cost electricity that's available most of the day. The new approach is part of Consumers Energy's Clean Energy Plan. If households make small changes now like shifting energy use away from high-demand times, it could eliminate the need to build new power plants.

For most of the year, households will pay a single price for electricity. From June through September, on-peak pricing will be in effect weekdays from 2 to 7 p.m.

Consumers Energy has sent letters to all of its residential electric customers explaining the new rate's impact on their bills and offering tips on how to use this new rate to save money. The energy provider will continue sharing information with customers throughout the summer.

"We know we all can take steps to protect the planet, and using less energy during peak times provides us all an opportunity to make a difference," said Lauren Youngdahl Snyder, Consumers Energy's vice president for customer experience. "By shifting energy use to mornings, nights and weekends when the demand for energy is lower, customers can help lower their bills and make an impact on our clean energy future – helping to keep Michigan beautiful for generations to come."

Consumers Energy is encouraging households to make a few small changes that can have a big impact on energy use and bills:

• Install a smart thermostat – Install a programmable or smart thermostat to control your air conditioner and save up to 15% on your energy bill. Smart thermostats automatically adjust your home's temperature settings for the best performance – and when combined with the Smart Thermostat Program, can help lower use during peak times without lifting a finger. Consumers Energy has rebates and discounted options at ConsumersEnergyStore.com.
• Adjust your air conditioner – Generally, adjusting your thermostat by 1 degree can reduce your electric bill by 1-3%.
• Postpone chores – Run the dishwasher and do the laundry before 2 p.m. and after 7 p.m. on the weekdays or save it for the weekend.
• Refresh your AC filters – Clean or replace your AC filters once a month to allow your air conditioner to run more efficiently.
• Swap out lightbulbs – Replace old incandescent bulbs with longer-lasting LEDs. Rebates for lightbulbs and appliances are available at ConsumersEnergyStore.com.

If customers are not able to reduce or shift electricity use, most will likely see a $2 per month increase or less on their bill. Some will even see their bill decrease.

People can learn more about the new Summer Peak Rate at ConsumersEnergy.com/SummerRate.

Consumers Energy developed the Summer Peak Rate in collaboration with the Michigan Public Service Commission. About 50,000 households moved to the rate in 2019. Consumers Energy postponed a statewide adoption of the new rate last year due to the pandemic.

Consumers Energy's Clean Energy Plan calls for eliminating coal and meeting 90% of customers' needs by eliminating energy waste and adding renewable energy sources. Learn more: MICleanEnergy.com.

Consumers Energy, Michigan's largest energy provider, is the principal subsidiary of CMS Energy (NYSE: CMS), providing natural gas and/or electricity to 6.8 million of the state's 10 million residents in all 68 Lower Peninsula counties.

For more information about Consumers Energy, go to ConsumersEnergy.com.

Check out Consumers Energy on Social Media 

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SOURCE Consumers Energy

FAQ

What is the Summer Peak Rate by Consumers Energy?

The Summer Peak Rate is a new pricing structure that incentivizes customers to use less electricity during peak hours to lower their energy bills.

When does the Summer Peak Rate take effect?

The Summer Peak Rate takes effect on June 1.

How much will bills increase with the new Summer Peak Rate?

Most households will likely see an increase of $2 per month or less.

How does the Summer Peak Rate benefit the environment?

By shifting energy use from peak hours, the program aims to reduce the need for additional power plants, supporting cleaner energy initiatives.

What changes can households make to save on energy bills under the Summer Peak Rate?

Households can install smart thermostats, adjust air conditioning settings, and shift energy-intensive chores to off-peak hours.