Consumers Energy Rates Will Soon be on the Rise in Michigan

Summer in Michigan means vacations, playing on the water, and road construction. (Two out of three ain't bad, right?) It also means you'll be paying a bit more for your electricity thanks to Consumers Energy's peak pricing policy.

What is Peak Pricing?

Peak pricing means the Michigan-based utility company will begin charging customers more for the electricity you use on weekdays between 2 and 7 pm during the summer months. This pricing policy goes into effect on June 1 and lasts through the end of September.

During peak hours, you'll pay roughly one and a half times the normal rate charged during the morning hours, evening hours, and throughout the weekend.

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If you read the fine print, you'll notice that Consumers Energy will also charge a slightly higher rate for off-peak hours compared to non-summer months. (I realize it's three decimal places deep - meaning five thousandths of one cent - but it is indeed higher.)

Here's the price breakdown:

• On-Peak Pricing - $0.215/kwh - June 1 through September 30 - Weekdays 2-7 pm
• Off-Peak Pricing - $0.166/kwh - June 1 through September 30 - All other times
• Regular Pricing - $0.161/kwh - October 1 through May 31

How Will Peak Pricing Impact Your Bill?

According to Consumers Energy, most residential customers in Michigan will pay roughly $2 more per month during the summer months. I used the utility's online calculator and found this to be the case for my family, as we typically spend about $125 per month for our juice.

What Can You Do to Lower Your Energy Bill?

There are a few things you can do to keep this rate increase from having a huge impact on your power bill.

• First, avoid using your air conditioning during peak hours. If you can cool your home before 2 pm on weekdays and set the thermostat a few degrees higher between 2 pm and 7 pm, your AC may run less.
• Postpone chores like doing laundry or dishes until after 7 pm.
• Swap out old incandescent light bulbs for more efficient LED bulbs.
• Clean or replace your furnace filter so your air conditioning units run more efficiently.

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