Summer electric rates are back, and consumers could pay more when they use power most
The seasonal pricing arrives as utilities pursue major rate increases that could add hundreds of millions of dollars to customer bills.
Consumer advocates say families should take steps now to shift electricity use outside peak periods to avoid the biggest increases.
As summer temperatures rise, American households are seeing higher electricity prices during the hours when air conditioners, appliances and other equipment place the greatest demand on the power grid.
Utilities across the country are increasingly urging customers to reduce usage during peak afternoon and evening hours, and many are moving customers to "time-of-use" rate structures that charge more when demand is highest. The goal is to reduce strain on the grid during hot summer weather and avoid expensive purchases of emergency power.
In Pennsylvania, the state’s utility commission issued a statewide alert warning consumers about higher summer electricity costs and encouraged customers to reduce consumption during periods of heavy air-conditioning use.
In Virginia, utilities are promoting voluntary off-peak pricing plans that reward customers who shift electricity use away from high-demand periods.
In California, most major utilities have moved residential customers onto time-of-use plans where electricity costs more during late afternoon and evening peak periods, generally around 4 p.m. to 9 p.m.
In Illinois, utilities are advising customers to move electricity use away from higher-priced hours, typically between 4 p.m. and 7 p.m. during summer months.
The bigger story for consumers may be why these advisories are becoming more common. Utilities and grid operators point to these factors:
More extreme summer heat.
Growing use of air conditioning.
Rapid expansion of electric vehicles.
Increasing electricity demand from AI-driven data centers.
Slower-than-needed additions of new generation and transmission infrastructure.
What consumers can do
Consumers looking to reduce their summer electric bills should consider:
• Running dishwashers, washing machines and dryers after peak hours.
• Charging electric vehicles overnight whenever possible.
• Pre-cooling homes before peak-rate periods begin.
• Using programmable thermostats to reduce air-conditioning use during the most expensive hours.
• Avoiding major appliance use during peak hours, generally late afternoon and early evening.
For many households, those adjustments could make the difference between a manageable summer utility bill and a costly surprise when monthly statements arrive.
Time-of-use rates can be a problem
For consumers, trying to take advantage of lower rates during off-peak hours isn’t always easy.
Utilities argue that higher peak-period prices better reflect the cost of generating and delivering electricity when demand is greatest. By encouraging customers to run dishwashers, laundry machines and electric vehicle chargers outside peak hours, utilities say they can reduce system costs and improve grid reliability.
Consumer advocates counter that many households — especially families with children, older adults and people working from home — have limited ability to avoid using electricity during the hottest parts of the day.
They note, too, that off-peak discount pricing is fine except that utilities around the country continue to seek higher base rates which can reduce the effectiveness of the discounts.
In Michigan, for example, Consumers Energy recently filed for a rate increase worth roughly $456 million annually, while DTE is seeking a separate $474 million increase. State regulators will review those requests over the coming months.
Michigan Attorney General Dana Nessel has announced that her office will challenge the proposed increases, arguing that utility customers are already struggling with affordability concerns and repeated rate hike requests.
Affordability Watch
The latest summer pricing changes come amid growing scrutiny of utility costs nationwide. Rising electricity demand, grid modernization projects, storm-hardening investments and the expansion of energy-hungry data centers are putting upward pressure on utility spending and customer bills.
Utilities say those investments are necessary to improve reliability, while critics argue consumers are being asked to shoulder too much of the cost.