Effective today, November 1, the Lansing Board of Water & Light (BWL) has updated residential electric customers to a time of use calculation to allow customers to better manage their energy usage and costs. The time of use rate structure will not increase an average residential customer’s electric bill. However, BWL’s Board of Commissioners approved a two-year rate strategy in September 2022 and all residential and commercial customers for all utilities will also see a rate increase effective today. 

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. 

“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.” 

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 are able to register by contacting BWL’s Customer Service Department at 517-702-6006 or emailing customerservice@lbwl.com.   

Time of use for both rates will see on-peak hours from 1pm-8pm Monday through Friday. Off-peak hours will include 8pm-1pm 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 is $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, making BWL a more resilient and reliable utility. 

Michigan Business Network recently spoke with Lansing Board of Water & Light's General Manager Dick Peffley about these changes and "Time of use" in a 'Michigan Business Beat',
please view the video for more perspective!

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 www.lbwl.com/comingsoon. 

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