Time-based Pricing

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The cost to produce electricity changes depending on the time of day, week, and year. It costs more to produce electricity on a hot summer weekday, when businesses are open and customers are using air conditioning, than it does on a cool spring weekend, when many businesses are closed and temperatures are moderate. Time-based pricing aligns utility rates with the cost to produce electricity at different times.

Actions to Date

• DTE and Consumers Energy ordered to implement on-peak rates in previous electric rate cases

Next Steps

• Work with Consumers Energy and DTE on implementation
• Stakeholder workgroup to promote customer awareness

Related MPSC Case(s)

• U-20134 (Consumers Energy)
• U-20162 (DTE)

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