BWL changes to time of use rates for all utility customers

LANSING, Mich. (WILX) - The Lansing Board of Water & Light (BWL) changed its customers’ bills to time of use rates, effective Nov. 1.

All residential electric customers currently on the standard residential electric service (RES1) rate will update to time of use with an off-peak rate of $0.1314 per kilowatt-hour (kWh) and $0.1445 per kWh during on-peak hours year-round.

BWL said the change to the time of use rates will not increase an average residential customer’s electric bill. However, BWL residential and commercial customers for all utilities will see a rate increase in November.

“Adopting time of use rates has become an industry best practice across the country and provides an easy way for our customers to take a hands-on approach to reducing energy consumption during peak demand,” said BWL General Manager Dick Peffley. “Energy during peak demand is the most expensive to produce and causes the most strain on the grid. By moving your energy usage to mornings, evenings and weekends, together we can reduce our environmental impact while saving money.”

Time of use for both rates will see on-peak hours from 1 p.m. to 8 p.m. Monday through Friday. Off-peak hours will include 8 p.m. to 1 p.m. Monday through Friday, weekends and on recognized holidays.

Rate increases for each utility will be as follows:

• Average Electric Rate Increase: 2.05%
• Residential: 4.5% increase
• This will result in a financial impact per month for a 750 kWh usage customer of $5.57
• Average Water Rate Increase: 9.5%
• Residential: 9.3% increase
• This will result in a financial impact per month for a 5 CCF usage customer of $3.71
• Steam rate increase: 9.95% (mostly commercial customers)
• Chilled Water rate increase: 4% (all commercial customers)

The rate increase for 2023 will result in an increase of $5.9 million for electric, $4.7 million for water, $1.1 million for steam and $200,000 for chilled water. The increased revenue will contribute to BWL’s $90 million capital improvement budget that reinvests in infrastructure, such as substation upgrades and aging water main replacements.

BWL will also continue offering its optional “Off-Peak Savers Rate (RESTOU)” to residential electric customers who want to take a more active approach to energy savings by shifting their energy usage to off-peak times. Customers can register by contacting BWL’s Customer Service Department at 517-702-6006 or emailing customerservice@lbwl.com.

The BWL has approximately 100,000 electric customers, 58,000 water customers, 155 steam customers and 19 chilled water customers. For more information on the billing changes, visit the utility’s website.

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