Michigan Time-of-Use

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If you are a good candidate for saving money with Time-of-Use, get started today. Call 800-242-9137 to sign up. Not sure if Time-of-Use is right for you?

Overview

Time-of-Use can save money on your electric bill if you can use some large appliances on evenings and weekends rather than weekdays.

With Time-of-Use, your electricity price is lower when energy demand is low (off-peak) and higher when demand is high (on-peak). The more you shift use of appliances such as electric space and water heating equipment to off-peak times, the greater your savings.

However, Time-of-Use is not for everyone. Your bill increases if you do not shift enough electricity use to off-peak times. Here are some situations where Time-of-Use may not be a good choice:

  • Large families that prefer taking baths or showers and washing laundry and/or dishes during the day.
  • Homes where water heater, furnace and/or clothes dryer use natural gas, propane or oil.
  • Average monthly electricity charges are less than $50, making savings potential minimal.

Off-peak hours: Early mornings, nights, weekends and holidays (65% of the hours in a week are off-peak). Off-peak holidays: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day. If a holiday falls on a Sunday and the federal holiday is observed on the following Monday, energy consumed on the Monday will be billed as off-peak.

On-peak hours: Weekdays during the time period you choose (35% of the hours in a week are on-peak).

Weekday on-peak time period choices:

  • 7 a.m. to 7 p.m.
  • 8 a.m. to 8 p.m.
  • 9 a.m. to 9 p.m. (Small commercial customers are limited to this on-peak pricing period.)
  • 10 a.m. to 10 p.m.

Terms and conditions

Compare Time-of-Use rates to standard rates:

Residential
Commercial

High impact appliances

  • Electric heat. Most heating needs are on cold nights. Portable space heaters should be used as little as possible during on-peak hours.
  • Electric water heater. You can install a timer that limits water heating to off-peak hours. Most tanks store enough hot water for on-peak use.
  • Electrically heated spa, hot tub or pool. You can install timers that limit hot tub, spa or pool heating to off-peak hours.
  • Other large electricity users. You can shift use of other large electricity users, such as electric welding equipment, commercial painting equipment and high-intensity industrial lighting.

Moderate impact appliances

  • Central air conditioner. Most air conditioning is used on-peak (high-cost times). Limit use during on-peak hours and cool during off-peak hours.
  • Dehumidifier, outdoor lights, pumps. Install plug-in or hard-wired timers on outdoor lights, pumps, dehumidifiers and other large appliances.
  • Electric clothes dryer. Do laundry in off-peak hours.
  • Electric range. Bake and cook in off-peak hours.

Low or no impact appliances

  • Household lighting
  • TV, computer, electronics
  • Refrigerators and freezers
  • Small appliances
  • Clothes washer (unless you have an electric water heater)
  • Gas heat
  • Gas water heater
  • Microwave oven

How to tell if you have a gas or electric water heater

Gas water heater

Gas water heater

Gas water heaters have a large exhaust pipe (metal or plastic) on top of the unit going from the heater to a chimney or out the side of the house.

Electric water heater

Electric water heater

Electric water heaters do not have an exhaust pipe — just small water pipes running into the top of the unit.


Ready to sign up?

Call 800-242-9137.