Our Time-of-Day Rate is based on when you use energy, and offers price breaks for customers who can commit to shifting their energy use from high-demand, or on-peak, hours to lower-demand, or off-peak or super-off-peak, hours.
Peak periods occur when energy demand from our customers is at the highest. This usually occurs on weekdays during the late afternoon and early evening when people and businesses are using more energy. Customer choices about how and when they use energy affect how Minnesota Power provides that energy and at what cost. By choosing to use energy during times when the cost to provide energy is less, and by conserving energy overall, you can help keep energy rates affordable, benefit the environment and save energy.
Hours and costs
Energy used during on-peak hours will cost more, energy used during off-peak hours will cost less, and energy used during super-off-peak hours will cost the least. You’ll pay about 13 cents a kilowatt-hour during on-peak hours, about 9 cents a kilowatt-hour during off-peak hours (slightly lower than the standard residential rate of $0.09403) and about 7 cents a kilowatt-hour during super-off-peak hours.
The graphic below reflects the standard residential rate effective Oct. 1, 2023, along with the Time-of-Day Rate adjustments and discounts.
Weekday Time-of-Day Hours
Weekend and Holiday* Time-of-Day Hours
*For customers eligible for the income- and usage-qualified discount who chose to enroll in the Time-of-Day Rate, the discount will be applied to the first 600 kWh in the form of a credit in the same way it would be applied on the standard residential rate.
Time-of-Day Rate Information
Q.
What is Time-of-Day rate?
A.
This rate structure adjusts the rate you pay for electricity over the course of the day. We provide price breaks for shifting your energy use from high-demand hours—typically on weekdays during the late afternoon and early evening—to lower-demand hours. We call high-demand hours “on-peak” and lower-demand hours “off-peak” or “super off-peak.” Energy used during on-peak hours will cost more, energy used during off-peak hours will cost less, and energy used during super-off-peak hours will cost the least.
This rate helps set the stage for the future by recognizing the increasing amounts of renewable energy on the electric grid and enabling a better match between energy use and the hours when renewable energy is most abundant. More than 50% of the energy we deliver now comes from renewable sources. When you use energy is just as important as how much you use. By choosing to use energy when the cost to provide energy is less and by conserving energy overall, you can help keep energy rates affordable, and benefit the environment.
Q.
Why are you offering a Time-of-Day rate?
A.
The Time-of-Day rate aims to better align the costs that our customers see with the actual cost of producing electricity. Changing how rates are structured will set the stage for the electric grid of the future by recognizing the shift to more renewable energy and enabling a better match of energy usage to the hours when renewable energy is most abundant.
For many years our rates have mostly been based on how much energy you use — even as energy sources have changed. For example, in 2005, Minnesota Power had 95% coal-based energy. Today we are delivering 50% renewable energy with a vision is to deliver 100% carbon-free energy by 2050. An important part of achieving that vision, while maintaining our commitment to reliability, is offering lower rates when energy sources are most abundant and demands on the system are lower. It also includes charging higher rates when energy resources are less abundant and demands on the system are higher. You can learn more about EnergyForward and our vision for a clean-energy future at www.mnpower.com/CarbonFreeEnergyVision.
Q.
How can I enroll?
A.
To enroll in the residential Time-of-Day Rate, choose one of the following options:
Online: Fill out the enrollment request form.
Phone: Call 218-355-2843 and request to be enrolled in the new residential Time-of-Day Rate.
Mail: Print and fill out the enrollment request form and return it to:
Minnesota Power
Attn: Customer Programs,
30 W Superior Street
Duluth, Minnesota 55802
Note: The effective date of the requested rate change will depend on the date the request is received and your current bill cycle.
Billing Details
Q.
How much could I potentially save by using the Time-of-Day Rate?
A.
Every house is different. Your savings will depend on how much you are able to reduce your energy usage during on-peak hours or shift it to off-peak or super-off-peak hours.
Q.
Is it possible for my bill to go up?
A.
Yes. If you do not shift the time of day that you use energy or you consume more energy during peak periods, your bill may go up.
Q.
Will I be able to track my energy usage?
A.
Yes. You will be able to see your hourly usage through MyAccount, our online energy use and payment tool.
Q.
Time-of-Day Bill Example
- Total Usage: The total amount of electricity in kilowatt-hours (kWh) you used during a billing period.
- Standard rate: The standard amount you are charged per kWh. This is currently $0.09403 (about 9 cents per kWh).
-
Adjustments to the standard rate: How the amount you pay per kilowatt-hour changes during each peak period.
- On-Peak: Standard rate plus $0.03667 (about 4 cents per kWh)
- Off-Peak: Standard rate minus $0.00239 (about ¼ of 1 cent per kWh)
- Super Off-Peak: Standard rate minus $0.02677 (about 3 cents per kWh)
- Summary: The amount of kWh you used during each peak period.
Q.
Is the Time-of-Day rate the only rate available for residential customers?
A.
Minnesota Power's Time-of-Day rate will be the default rate for all residential customers with eligible services in the future. Customers who prefer a rate that doesn't vary based on the time of day can opt for Minnesota Power's flat rate. The flat rate is the same price for all electricity used in your home, regardless of when it's used. If you choose the residential flat rate, the Time-of-Day rate will be an option for you in the future. Just give us a call or revisit this website.
On the residential flat rate, the base charges on your electric bill are:
Service charge: This is the minimum monthly fee and covers the cost of connection to our system.
Flat rate: Minnesota Power charges a flat rate for residential customers. With a flat rate, you pay the same energy charge per kilowatt-hour no matter how much energy you use. This is generally how electric utilities in Minnesota charge for energy used. As of Oct. 1, 2023, this rate is $0.09403/kWh. There is a discount to the flat rate for customers who:
- average 1,000 kWh or less per month AND
- are either approved for the Low Income Home Energy Assistance Program (LIHEAP) or inform Minnesota Power that they are income-qualified through a self-declaration process.
Effective Oct. 1, 2023, the discount on up to the first 600 kilowatt-hours for eligible customers is $0.03761.
Other line items on your bill include sales tax as well as adjustments or surcharges related to fuel, purchased energy, programs and system/resource investments.
Tips to Save on the Time-of-Day Rate
The Time-of-Day rate can help you control your electric bill when you shift your electric usage to the off-peak and super off-peak hours. Remember, when you use energy is just as important as how much you use.
- Run energy-intensive appliances like clothes dryers, window AC units and electric heating sources during off-peak and super off-peak periods.
- Water heating accounts for a significant percentage of the average home's energy use. If you have an electric water heater, avoid taking showers, washing dishes, and doing laundry between 3 p.m. and 8 p.m. on weekdays, when the rates are highest.
- Charge electronics and Electric Vehicles overnight.
- Put electronics on smart power strips, and turn them off when not in use.
- Use a programmable or smart thermostat to run electric heating sources during off-peak or super off-peak hours and consider setting your heat back when you're not home.
- Use small appliances to cook during on-peak hours. Microwaves, toaster ovens and pressure cookers use less than half the energy of a conventional oven.
-
Laundry:
- Wash full loads of laundry when you can.
- Switch your temp setting from hot to warm to cut energy use in half for a single load. Switching to cold wash can reduce energy use even more. Around 90% of the energy consumed for washing clothes is to heat the water.
- Use MyAccount to monitor your electricity usage.
Privacy and Reporting
Q.
Who will see my energy usage information?
A.
Minnesota Power is required to report certain data along with customer usage information to the Minnesota Public Utilities Commission. Individual customer names, account numbers and addresses will not be included in the reporting.
Q.
Will I be required to provide any feedback?
A.
Customers will be asked to provide feedback from time to time. You are encouraged to participate in this feedback.
Request Removal from Time-of-Day
- This form is only for current Time-of-Day customers requesting a rate change to Minnesota Power’s Standard Residential Rate.
- Customers who elect to be removed from Time-of-Day can reapply within 12 months, but then must remain on for 12 months before they can request off again.
- Time-of-Day removal will be processed with the next available bill cycle following receipt of your request.
