How to lower your DTE, Consumers Energy bill using time-of-day rates, more

Nour Rahal, Detroit Free Press
·2 min read
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DTE Energy's new Time of Day plan will give electric customers more control over their bills, starting in March.

The new plan comes after the Michigan Public Service Commission authorized a $30.5 million rate increase for DTE in November 2022. The increase amounts to an additional 71 cents on monthly bills for a residential customer who uses 500 kilowatt hours of electricity.

Customers can "choose to use energy during the times of day when demand is lower," according to a news release. This "allows DTE to better manage peaks to help keep energy affordable."

How to beat the rising rates?

DTE rates are usually lower before 3 p.m. or after 7 p.m. Monday through Friday. Customers can save money by shifting some of their energy use between these times.

"When you adjust your habits and do things like laundry, dishes or run your air conditioner in off-peak hours, you benefit from a lower electric rate," according to DTE.

  • Off-peak hour rates: 15.45 cents per kilowatt-hour, all weekend and 20 hours during weekdays.

  • Peak hour rates: 16.75 cents per kWh between Oct. and May; 20.98 cents kWh between June and September.

DTE serves 2.3 million customers in southeast Michigan. Customers on DTE's "D1 standard residential electric base rate will move to the new Time of Day rates," according to DTE. In preparation for the new plan, customers will be receiving more information via mail, including a welcome kit with tips and tools.

Customers can also visit DTEenergy.com/TimeofDay to learn more.

Consumers Energy's rates

Officials also approved a $155 million rate increase for Consumers Energy electric customers on Jan. 19. An average Consumers Energy customer who uses 500 kWh of power per month has seen a 77-cent increase in their monthly bill since Jan. 20.

Sponsor - DFP Consumers Energy
Sponsor - DFP Consumers Energy

Consumers Energy customers can also shift their energy usage to save money using the company's Smart Hours plan, which has been in place since 2021.

To take advantage of off-peak rates, Consumers Energy customers can move their electricity use away from peak hours:

  • October - May: From 2-7 p.m. on weekdays, electricity will cost about 1 cent more per kilowatt hour, compared to off-peak times.

  • June - September: From 2-7 p.m. on weekdays, electricity will cost about 5 cents more per kilowatt hour, compared to off-peak times.

Concerns about increasing rates

The Michigan Public Service Commission is a regulatory agency that oversees public utilities in Michigan.

Residents concerned about rate increases can attend public meetings and submit comments to object.

"Effective August 1, 2022, the MPSC added a new section for public comments," according to the Department of Licensing and Regulatory Affairs. Customers may submit a comment on any case before the Commission here.

Bill payment assistance is also available from the state to those who qualify.

Contact Nour Rahal: nrahal@freepress.com

This article originally appeared on Detroit Free Press: How to lower DTE, Consumers Energy bills: Time of day rates