Time-of-Use Rates - For Business Customers

For Residential customers

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.

Time-of-Use Hours

TOU periods

Customer consumption is divided into four time periods.

  • On-peak 1 = 10 a.m. to 1 p.m., Monday through Friday
  • On-peak 2 = 1 p.m. to 6 p.m., Monday through Friday
  • On-peak 3 = 6 p.m. to 9 p.m., Monday through Friday
  • Off-peak = 9 p.m. to 10 a.m., Monday through Friday, all day weekends and holidays

Six off-peak holidays

New Year's Day Labor Day
Memorial Day Thanksgiving Day
Independence Day Christmas Day

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.
  • Non-farm, single-family residential units with average daily use of 130 kWh or more during the four-month summer billing season (June 1–Sept. 30).

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