LIPA Considers Time-of-Day Rates for Residential Ratepayers - 27 East

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LIPA Considers Time-of-Day Rates for Residential Ratepayers

authorStaff Writer on Jan 18, 2023

The Long Island Power Authority is floating a plan to offer time-of-day rates and an optional “super off-peak rate” for residential electricity bills beginning in 2024.

LIPA is pitching the proposal as a way for its ratepayers to save money while supporting the transition of Long Island and the Rockaways to clean, affordable energy.

Customers will still have the option to stay on a flat rate, according to LIPA, while those using the time-of-day rates will receive a 12-month bill protection guarantee that means they will receive a refund if they would have paid less on a flat rate.

On the time-of-day rate structure, customers will pay more for electricity during weekdays from 3 to 7 p.m., the peak hours, but pay less all other hours of the day and on weekends and holidays. The super off-peak rate, from 10 p.m. to 6 a.m., will be discounted even more.

“The plan would immediately reduce rates for more than 80 percent of customers without any changes to how or when they use electricity,” LIPA’s announcement states. “Under this proposal, customers would have the ability to save even more money and support a cleaner electric grid by making small changes in their daily routine by conducting energy-intensive activities — such as doing laundry or charging electric cars — in off-peak hours.”

Customers who only do laundry during off-peak hours could save $4 per month, and electric vehicle owners who only charge up during off-peak hours could save $43 per month, according to LIPA.

“Time-of-Day Rates are an important rate modernization reform that will help lower customer bills and advance clean energy,” said Thomas Falcone, the CEO of LIPA. “Once adopted, this plan will save more than 80 percent of customers money while supporting our clean energy transition by reducing carbon emissions and taking the burden off the electric grid during the highest times of demand.”

Interested stakeholders can provide input at two public hearings on February 21, at 10 a.m. in Hauppauge and 6 p.m. in Uniondale, where customers can sign up to speak. LIPA will also accept written public comments until February 27. Written comments can be emailed to todpubliccomments@lipower.org. The proposal is scheduled for consideration at the March 29 meeting of the LIPA Board of Trustees in Uniondale, where the public is invited to attend and speak. For more information on how to attend and participate in public hearings and board meetings, visit lipower.org.

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