Time-of-Use Rates

Time-of-Use (TOU) rates more accurately reflect MGE's costs to generate and deliver electricity. It is more expensive to serve customers on-peak—when demand for electricity is high. We charge our customers less off-peak—when the cost of electricity to serve our customers is low.

TOU periods

Six off-peak holidays

Pricing varies with time of day

• During off-peak hours, electric energy charges are lower than standard electric service rates.
  • During on-peak they're higher.
• All electric consumption is charged a lower base energy, all kWh charge.
  • During off-peak times, it is the only energy charge.
• On-peak electric consumption is charged the base energy, all kWh charge plus a peak charge that reflects the extra cost to generate electricity for the highest summer energy demand period.

Pricing varies with the season

• On-peak period charges are higher in the four summer months.
• On-peak period 2 increases more than periods 1 and 3 during the summer months.
• The base energy, all kWh charge stays the same throughout the year.

Mandatory TOU rates

Some MGE customers must be served on TOU rates:

• Business customers with a demand greater than 20 KW.

TOU rates are optional for all other customers:

• A customer choosing this option must stay on TOU rates for at least one year but may shift back to the standard rate after one year.

For more information

• Commercial TOU Frequently Asked Questions
• Current TOU Rates