Traverse City moves customers to time of use rates this December
Starting in December, Traverse City Light and Power will shift all customers to a new time of use rate structure that charges more during busy hours and less during low demand periods, with an automatic enrollment and a four year phase in. The change aims to give residents more control over bills, support cleaner energy use, and reduce strain on the local grid while TCLP holds open houses to explain details to customers.
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Traverse City Light and Power will begin transitioning every customer to a time of use rate structure in December, a move that changes how households and businesses are billed for electricity and aims to better reflect the actual cost of producing power. The city owned utility will automatically enroll customers in a baseline program and phase them into long term rates over four years, while offering a more aggressive optional plan for those who want to make larger shifts in their energy use.
TCLP has scheduled two open houses to help customers understand the new rates, both at the Hastings Street service center on Thursday from 12 p.m. to 1 p.m. and from 5:30 p.m. to 6:30 p.m. The utility has prepared for this transition for several years and presents the time of use model as a common industry tool to manage demand and better integrate renewable energy resources.
Under the baseline Eco Steady program customers will pay a fixed monthly fee of $13.50 plus kilowatt hour charges that vary by time of day. Off peak rates will range from about nine to ten cents per kilowatt hour, while summer on peak rates will top out at over thirteen cents per kilowatt hour. TCLP also offers an Eco Champion option for customers willing to shift more usage to off peak times, featuring shorter summer on peak windows but higher on peak prices. Customers may call TCLP to switch plans, or to opt out of the phased in schedule and go directly to the full time of use rates.
The utility says the pricing structure has been designed to be revenue neutral overall, with lower off peak prices offsetting higher on peak prices in aggregate. TCLP advises residents that concentrating energy heavy activities such as laundry, dishwasher cycles, or electric vehicle charging during off peak hours can reduce bills under the new system, while some customers may see higher summertime bills that are intended to be balanced by lower winter bills.
TCLP plans to support customers through the change with an energy coaching program and online tools that let households monitor use and make real time adjustments. Practical suggestions promoted by the utility include upgrading to LED lighting, using natural light when possible, investing in smart plugs and a smart thermostat, scheduling laundry for weekends, and charging electric vehicles overnight.
The move in Traverse City mirrors a broader trend among utilities worldwide adopting time based pricing to smooth peaks, lower reliance on expensive fossil fuel generators during high demand periods, and make grids more efficient. For local residents, the transition means new choices about when to use energy, an expected learning curve for habits and household routines, and the potential to lower bills by shifting behavior while contributing to a cleaner local grid.
