Time-of-Use Rates

Select your preferred rate.

Customers who haven’t selected a rate will automatically be moved to Eco Steady, Phase-In as of December 2025. Those on net metering/billing (Customer Generation Program) will be migrated to Eco Champion, Non-Phase-In.

If you would like a different rate, contact a customer service representative at customerservice@tclp.org or call 231-922-4940.

While the cost for Traverse City Light & Power to purchase and deliver electricity to Traverse City homes can vary from hour to hour, under the current rates, these costs are averaged over a year to produce a single flat rate.

But there’s a better way! You can pay less for electricity when it costs less to make. These are called time-of-use rates. You save money by using less electricity when it’s more expensive.

Time-of-use plans can help you manage your energy costs. By taking advantage of lower rates during off-peak periods (includes weekends and holidays), you can avoid higher rates when energy resources are in demand.

Shift activities like laundry, dishwashing and charging your electric vehicle to off-peak hours to maximize your savings.

Customers are charged a higher electricity rate when the cost of purchasing and delivering electricity is highest (usually midday) and a lower electricity rate when the cost of generating electricity is lower (usually late evening and early morning).

The time-of-use rates are designed to be revenue-neutral for the average customer. However, if you are able to shift your electricity usage to off-peak hours, you have the potential to reduce your electricity bills.

For those who naturally consume more energy during off-peak hours, you won’t need to alter your behavior to have the potential to save. For others, you will need to make deliberate choices to shift your electricity-consuming activities to off-peak hours. This includes doing laundry, operating the dishwasher or charging an electric vehicle.

Additionally, electric heating and home cooling make up a large chunk of your energy use and your bill. The best way to save on your energy bills is to utilize a smart thermostat to lower your home temperature in the winter and raise it during the summer months.

No, the switch to time-of-use is not a rate increase. The rate structure is designed to generate the same amount of revenue on an annual basis as the previous rate structure. Off-peak prices are lower than the previous residential rate, while on-peak prices are higher. Doing this equals approximately the same amount of revenue, except that now there is more flexibility for customers to control their electricity costs.

There are multiple reasons for implementing time-of-use rates.

Environmental
From an environmental standpoint, it encourages energy conservation. It is also anticipated that shifting more usage to off-peak hours will assist TCLP’s efforts toward decarbonization by moving away from baseload generators using fossil fuels to generate electricity.

Cost
From a financial perspective, the cost to produce electricity changes throughout the day based on when it is used. When people use more electricity, the cost goes up; when people use less, it goes down. Time-of-use rates better align electricity costs with market prices. Higher customer demands during on-peak hours drive higher costs. This means that prices are lower during off-peak hours when demand and utility costs are also lower.

TCLP also has to pay for capacity (ability to generate electricity) to ensure a steady supply of electricity is provided to its ratepayers. The amount of capacity required is determined when the utility peaks in electricity consumption, which has historically been mid-July in the afternoon when people are cooling their buildings, offices or homes. Any reduction in this peak will lower the utility’s cost for capacity and provide savings for both the utility and its customers.

Fairness
Lastly, it creates fairness by recovering the costs of providing electric service equitably. Those customers who cost more to serve pay more and those customers who cost less to serve pay less.