LIPA unveils new time-of-day rates for customers
LIPA's new time-of-day rates could save customers money
LIPA has approved new time-of-day rates that could potentially save customers money on their electric bills. Beginning in February 2024, customers can choose between a flat rate of about 25 cents per kilowatt-hour or a time-of-use plan that fluctuates based on the time of day.
LONG ISLAND - The Long Island Power Authority has approved a new plan that may save customers some money.
Starting in February 2024, customers can choose to keep paying a flat rate of about 25 cents per kilowatt-hour for their electricity or switch to a plan that fluctuates based on the time of day.
"Peak will be at a higher per kilowatt-hour cost," said Tom Falcone, CEO of LIPA. "Off-peak will be at a lower cost. We’ll have one rate during peak, 3 to 7 p.m. on the weekdays."
Under the plan, power would cost the most during summer and four hours on weekdays, but all other hours of the year including weekends and holidays would be considered off-peak.
LIPA's new Time-of-Day rates. (Credit: lipower.org)
"Thirty-eight cents a kilowatt-hour at peak, 20 cents off-peak," Falcone said. "There’s also another plan that’s an optional plan where you’d get a deeply discounted overnight rate of 13 cents."
That deeply discounted rate offered between 10 p.m. to 6 a.m., would benefit those charging electric cars. The goal, according to LIPA, is to reduce carbon emissions and the need for additional infrastructure investments.
The time-of-use plan is optional and will come with a one-year guarantee by LIPA to refund the difference to customers whose bills are higher under the new rate, compared with their prior standard rate.
LIPA’s service provider, PSEG Long Island, says customers don’t have to opt in but will receive notices before the transition.