LANSING, Mich. (WLNS) — The Lansing Board of Water & Light (BWL) has changed how certain customers’ electricity use is calculated and has already enacted a rate increase that was approved last year.

BWL announced Wednesday it will switch its residential electric customers over to a time-of-use calculation method. According to BWL, changing to a time-of-use structure will not increase the average customer’s bill.

All BWL residential electric customers currently on its standard residential electric service rate will update to time-of-use with an off-peak rate of $0.1314 per kilowatt-hour, and $0.1445 per kilowatt-hour during on-peak hours year-round.

What will raise BWL customers’ bills are the rate increases that were first approved for all residential and commercial utilities as part of a two-year rate strategy back in September 2022.

The rate increases for each utility are:

  • Residential electric: 4.5% increase — a 750 kWh usage customer would pay an extra $5.57 per month
  • Residential water: 9.3% increase — a 5 CCF usage customer would pay an extra $3.71 per month.

BWL’s announcement on Wednesday states the rate increases will result in additional revenue of $5.9 million for electricity, $4.7 million for water, $1.1 million for steam, and $200,000 for child water. The extra revenue will be used for BWL’s $90 million capital improvement budget, which reinvests in infrastructure like substation upgrades and water main replacements.

“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 is also continuing its optional “Off-Peak Savers Rate” for residential electric customers who want to make sure they use energy during off-peak times. Customers can 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 1 p.m. to 8 p.m. on Monday through Friday. Off-peak hours are 8 p.m. to 1 p.m. on Monday through Friday, weekends and on recognized holidays.