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.
Frequently Asked Questions (FAQ)
Program Details
Q.
When are on-peak hours?
A.
On-peak hours are the hours when electricity use is typically the highest- Monday-Friday from 3 p.m. to 8 p.m., excluding holidays (New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day). During on-peak hours, the standard rate will be increased by $0.03667 per kWh.
Q.
When are off-peak hours?
A.
Off-peak hours are Monday-Friday from 5 a.m. to 3 p.m. and 8 p.m. to 11 p.m.; weekends and holidays from 5 a.m. to 11 p.m. During off-peak hours the standard electric rate will be decreased by $0.00239 per kWh.
Q.
When are super-off-peak hours?
A.
Super-off-peak hours are everyday from 11 p.m. to 5 a.m. during which the standard electric rate will be discounted by $0.02677 per kWh.
Q.
What is peak?
A.
Peak refers to the time of day when energy demand from our customers is the highest.
Q.
What is advanced metering infrastructure, commonly called AMI, and why do I need it?
A.
AMI allows us to automatically and more frequently collect information about energy consumption and diagnostic and status data from your electric meter that helps us better serve our customers.
Q.
Will Minnesota Power shut off or restrict my electricity during peak hours?
A.
No. Minnesota Power will not restrict any electric use during peak hours, but rates will be increased.
Q.
How do 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.
Rate Details and Billing
Q.
What is a watt?
A.
A watt is the amount of energy a device uses in performing its function. For example, a 100-watt lightbulb uses 100 watts.
Q.
What is a kilowatt?
A.
A kilowatt is 1,000 watts.
Q.
What is a kilowatt-hour (kWh)?
A.
A kilowatt-hour (kWh) is the term used to measure the amount of electrical power used in one hour. Kilowatt-hours are what the electric meter on the side of your house measures. This is the basis for calculating your monthly electric bill.
Q.
How am I currently charged for electricity through Minnesota Power?
A.
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.
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.
If I go on the Time-of-Day Rate and decide that it is not for me, can I go back to the flat rate?
A.
You can request to be removed from the Time-of-Day Rate at any time.
Q.
Why are you offering a Time-of-Day Rate?
A.
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 and 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.
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 are not eligible to re-enroll for 12 months.
- The rate change will be effective the date your request is submitted and will be reflected on your next bill.
