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.
Six off-peak holidays
|New Year's 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