Time-of-Use Rates - For Residential Customers

For Business customers

Time-of-use (TOU) rates give customers the opportunity to reduce their electric bills by changing when they use electricity. If you shift significant electricity use from times of high electric demand to when demand is low, you will save. Complete the Benefit Worksheet to see if TOU rates may be right for you.

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

Program details

  • Minimum of one full year participation required.
  • MGE will install the special TOU meter at no extra charge.
  • Electricity is priced differently during the different time periods.
  • Similar to standard rates, electric energy charges are higher in the four summer months.

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.

Effective January 1, 2017:

Charges during Winter Season (Oct. 1 - May 31) per kWh

Time period Distribution Service Base Energy all kWh On-Peak Total/kWh
Off-peak $0.03356 $0.04160 N/A $0.07516
On-peak 1 $0.03356 $0.04160 $0.16149 $0.23665
On-peak 2 $0.03356 $0.04160 $0.16149 $0.23665
On-peak 3 $0.03356 $0.04160 $0.16149 $0.23665

Charges during Summer Season (June 1 - Sept. 30) per kWh

Time period Distribution Service Base Energy all kWh On-Peak Total/kWh
Off-peak $0.03356 $0.04160 N/A $0.07516
On-peak 1 $0.03356 $0.04160 $0.18913 $0.26429
On-peak 2 $0.03356 $0.04160 $0.21156 $0.28672
On-peak 3 $0.03356 $0.04160 $0.18913 $0.26429

Mandatory TOU rates

Some MGE customers must be served on Time-of-Use 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.

Who can benefit

The more you shift to off-peak, the more you can save. If you can use more than two-thirds of your electricity off–peak, your monthly bill may be lower than on the standard rate. More than 70% of the residential customers who choose Time-of-Use save from 1% to 5% over standard rates. Typically those who are saving on this rate:

  • Are away from home daytime Monday through Friday.
  • Have large electric users:
    • Water heater
    • Dehumidifier
    • Electric clothes dryer
    • Central air conditioner
    • Plug-in electric vehicle
  • Shift most of their use to off-peak.
  • Have 31 or more points on the Benefit Worksheet.

Comparison report

MGE will send residential TOU customers a report twice a year to help you understand if TOU rates are saving you money. It compares your use on TOU rates to the standard Residential Service rate.

To sign up

Call Customer Services at (608) 252-7222(608) 252-7222 during business hours (7 a.m. to 7 p.m., M-F) or email customerservices@mge.com. We'll send an agreement for your signature and start the request for your new meter installation.

For more information