The Long Island Power Authority will shift electricity customers to a new standard rate to encourage energy use later in the day.
The LIPA Board of Trustees approved the time-of-day rate structure on Thursday, advancing the clean energy goals to avoid generating energy during peak hours.
“The cost to generate electricity during those peak hours is the most costly for us and the most carbon intensive,” LIPA spokesperson Jen Hayen said. “So if we can spread that load, we can ultimately reduce carbon emissions. And this is going to help us transition our grid to our clean energy future.”
The price paid for energy use will depend on the time of day.
Customers should expect to pay more between 3 and 7 p.m. during peak hours, and less during all other hours of the day and on weekends and holidays — and even discounted services during “super-off peak” hours from 10 p.m. to 6 a.m.
Hayen said customers can “make little changes to their behavior” — presenting a smart thermostat to use less energy at 3 p.m., while starting dishwashers, activating pool pumps and charging electric vehicles that use more energy after 7 p.m. — can save about $50 per month on their energy bills.
Reducing energy use during peak times by 6-8% is equivalent to taking a power plant offline.
PSEG Long Island — LIPA’s contracted utility service provider — will reach out to customers with at least 30-day notice before rates change in phases, beginning in 2024 and continuing through 2025. Customers can opt-in as early as this fall, while others may reach out to stay at the current flat rate.
Under a “bill protection guarantee,” if they would have paid less on the flat rate within the first year, customers will receive a bill credit.
