DTE Energy is moving to a new time of day rate plan in March, which means electricity costs more or less depending on when you’re using it.
Peak hours cost more than off-peak hours. Peak hours are 3 p.m. through 7 p.m. on weekdays.
So, if you do things like laundry, dishes or run your air conditioner during peak hours you’ll see higher prices compared to off-peak hours. Off-peak hours are before 3 p.m. and after 7 p.m. on weekdays and all weekend long.
DTE Energy said customers can save money by shifting their energy use to before 3 p.m. or after 7 p.m. Monday through Friday.
Customers were paying between 16.9 cents and 18.6 cents per kilowatt hour all day, every day. With the new plan, customers will pay 15.45 cents per kilowatt hour during off-peak hours.
During peak hours, the prices will be 16.75 cents per kilowatt hour from October through May and 20.98 cents per kilowatt hour from June through September.
“Twenty hours a day and then all weekends for all year long, you have a fixed rate which is lower than our current rate. And then what we’re trying to reflect from 3 p.m. to 7 p.m. is the most expensive time to generate power,” DTE President and CEO Trevor Lauer told Local 4.
DTE Energy hopes this new plan will help keep the grid balanced by encouraging less energy use between 3 p.m. and 7 p.m.
All customers on DTE Energy’s D1 standard residential electric base rate will move to the new time of day rates in March.
Off-peak hour rates:
- 15.45¢ PER kWh
- Before 3 p.m. and after 7 p.m. on weekdays -- and all weekend long
Peak hour rates:
- 16.75¢ PER kWh (October-May)
- 20.98¢ PER kWh (June-September)
- From 3 p.m. until 7 p.m. during weekdays for a total of four hours each day.
Customers should expect a welcome kit from DTE Energy in the mail with more information about the changes before they are converted later this year.
Click here to read more from DTE Energy.
Read: DTE launching new effort set to lower rates during off-peak times