Electric bills in Michigan are rising — just in time for summer

• Summer rates for DTE and Consumers Energy begin Saturday and will be in effect until the end of September 
• The higher rates are to encourage customers to use less electricity during peak hours 
• DTE customers will pay about 22 cents per kilowatt during peak hours, while Consumers customers will pay about 21 cents

Michiganders can expect to see an increase in their electricity bills as summer rates for DTE and Consumers Energy, the state's two largest utility companies, go into effect Saturday. 

The summer rates, which are in place through September, are part of a price plan the utility companies began implementing several years ago, according to the Michigan Public Service Commission, called “time of use” rates.

Under this plan, customers are charged higher rates during peak hours but those peak-hour rates go up during the summer. 

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The upcoming rate increase comes as the National Oceanic Atmospheric Administration’s Climate Prediction Center says there’s a 40% to 50% chance the state will experience temperatures above-normal throughout the summer. 

For Consumers customers, peak hours from June to September are weekdays from 2 to 7 p.m. Customers' electricity will cost about 5 cents more per kilowatt-hour, compared to off-peak times. But during the rest of the year, electricity costs about 1 cent more per kilowatt-hour during peak hours. 

DTE customers pay about 7 cents more per kilowatt-hour during peak hours in the summer months, which are 3 p.m. to 7 p.m., compared with 2 cents more per kilowatt-hour during peak hours any other time of the year. 

With the summer increases, Consumers customers can expect to pay about 22 cents per kilowatt-hour during peak hours. Outside of peak hours and on the weekends customers will pay roughly 16 cents per kilowatt-hour. 

“The time of use rates in effect for Consumers Energy and coming into effect for DTE Electric customers were directed by the MPSC,” Matt Helms, public information officer for the commission, told Bridge Michigan. “Dating back several years, the MPSC has encouraged utilities to address the fact that the cost of producing electricity or procuring it from the market varies by time of day and day of the week, as well as the time of year.” 

DTE customers will pay 22 cents per kilowatt-hour during peak hours from June through September and about 17 cents per kilowatt-hour outside of peak hours.

The “time of day” rates, a mandate by the Michigan Public Service Commission,  allow DTE to manage energy supply, according to the utility company’s website. 

The company recommends customers run their dishwasher at night, do laundry on the weekend, install smart power strips and set the thermostat to a schedule during peak hours to save money on their electricity bill.