Consumers Energy’s Summer Time‑of‑Use (T‑U) Rate — which includes peak pricing — has evolved significantly since the early 2000s, reflecting both regulatory changes and rising electricity costs, to accommodate the misguided Net Zero agenda.
Pre‑2000 context
Before the 2000s, Michigan’s electricity market was still largely regulated, with fewer time‑of‑use programs and more uniform pricing. Consumers Energy, as a monopoly provider, did not have the same structured peak/off‑peak rate design as today. Peak pricing was not a standardized, customer‑visible program, and rates were generally flat or had minimal time‑based differentials. In other words, customers were not significantly subject to the very inconvenient current policy. An optimal fossil fuel plant generating combination can adjust for not only seasonal fluctuations in demand, but also daily and hourly ones, unlike solar and wind.
2000s–2010s
In the 2000s, Consumers Energy began rolling out Summer Time‑of‑Use programs to encourage off‑peak use and reduce grid strain, as the Net Zero agenda began to really get off the ground. See my interview with an industry insider to read about the politics behind the changes. By the mid‑2010s, the program was in place for most customers, with weekdays 2–7 p.m. in summer as peak hours. Off‑peak rates were lower, but the gap was modest compared to today.
Current structure (2025–2026)
As of June 1, 2025, Consumers Energy’s Summer Rate is:
- Peak (weekdays 2–7 p.m., June 1–Sept 30): $0.245/kWh
- Off‑peak (all other times): $0.197/kWh
- Non‑summer months: Flat rate of $0.176/kWh Consumers Energy
This means the peak rate is about 1.25× the off‑peak rate in summer, and the flat rate in winter is lower than the off‑peak summer rate, creating a more pronounced incentive to shift usage.
Key changes since pre‑2000
- Higher peak prices: The current $0.245/kWh peak rate is substantially higher than the modest differentials seen in the 2000s.
- Broader adoption: The program now applies to most residential and commercial customers, not just select groups.
The higher peak rates are intended to shift demand away from mid‑afternoon, reduce reliance on natural gas, and support solar and wind which cannot readily be adjusted to meet demand, since they are not reliable, dispatchable sources of electricity.
In short, Consumers Energy’s peak pricing has moved from a minimal, informal time‑of‑use model in the early 2000s to a structured, higher‑differential program today, with peak rates now over 24¢/kWh in summer — a significant increase from earlier decades.
One priority of a locally controlled cooperative should be to move away from this Net Zero madness and return to a sound energy policy.