Proposed Time-of-Day Rates

Proposed Time-of-Day Rates

LIPA is proposing to modernize its standard electric rate for residential customers in 2024 with a new Time-of-Day (TOD) Rate to help customers save money and support the transition to clean energy on Long Island and the Rockaways. LIPA is also proposing an optional Flat Rate and Super Off-Peak Rate.

To learn more about Time-of-Day Rates, please read our informational fact sheet:

Fact Sheet: LIPA’s Time-of-Day Rates

With the new TOD Rate and Super Off-Peak Rate, customers pay different rates for electricity based on when they use it. Electric rates are higher during weekdays from 3 p.m. to 7 p.m. (“peak” hours) but lower all other hours of the day and on weekends and holidays (“off-peak” and “super off-peak” hours). Customers can save money by moving a portion of their electric usage – like doing laundry or charging electric cars – to off-peak hours. These discounted off-peak rates are available 88% of the hours throughout the year.

Most customers (more than 80 percent) will pay the same or less on the new TOD Rate and Super Off-Peak Rate without changing how or when they use electricity. That is because most customers already consume most of their energy off-peak. On average, customers will save about $3.50 per month on the TOD Rate and $5.75 per month on the Super Off-Peak Rate compared to the Flat Rate, without making any changes in their daily routine. Customers who make small changes in their daily routines can save more, as shown in the Fact Sheet (available below). The new time-of-day rates will also make the electric grid cleaner and more efficient.

To help customers transition to the new rate plan, LIPA is proposing a Bill Protection Guarantee for a customer’s first year on the TOD Rate or Super Off-Peak Rate. If after 12 months a customer’s electric bill on the TOD Rate or Super Off-Peak Rate is higher than it would have been under the Flat Rate, LIPA will automatically refund the difference.

Savings Table

Public Comments and Outreach

Public awareness and input are an important component of the TOD Rate proposal.

LIPA invites the public to participate in this process by taking part in one of the scheduled public hearings listed above or by submitting a written comment to [email protected]. Public comments will be accepted until February 27, 2022.

The proposal is scheduled for consideration at the March 29, 2023 meeting of the LIPA Board of Trustees in Uniondale, New York. Consideration by the Board of rate and tariff changes are held in open session and the public is always invited to attend and speak.

If approved by the LIPA Board of Trustees, customers will receive notice 90, 60, and 30 days before they are scheduled to transition to the TOD Rate in 2024. Since the TOD Rate will impact every customer differently based on their usage, customers will have access to a range of information and tools to understand how the TOD Rate will affect them.

Frequently Asked Questions

Why is LIPA proposing this new TOD rate?
LIPA aims to provide customers with fair electric rates that are as simple as possible and that include opportunities for customers to save money. LIPA's new TOD Rate and Super Off-Peak Rate provide savings opportunities for customers while making the electric grid cleaner, more efficient, and less costly for all.
What does it mean for the TOD Rate to be the "standard" rate?

The standard rate means that the new TOD Rate will be the primary rate offered to customers. Most existing and new customers (with limited exceptions) will be transitioned to the proposed TOD Rate during 2024. The TOD Rate will not be mandatory — customers can also choose a Flat Rate or Super Off-Peak Rate at any time, among other options.*

* For example, customers who heat their homes with electricity are eligible for a special heating rate.

What will the TOD Rate be?
On the TOD Rate, customers pay different rates for electricity based on the season (summer and non-summer) and time of day. Peak hours will be from 3 p.m. to 7 p.m. on weekdays. All other hours will be off-peak. Nights, weekends, and holidays are always off-peak. Discounted off-peak pricing will apply during 88% of the hours in a year. The charts below show the time periods and rates for the non-summer and summer seasons using 2023 electric rates.
What if I don't want to be on the TOD Rate?
Customers can choose to switch to the optional Flat Rate that has one price all day in the summer season and another the rest of the year. On average, customer bills on the Flat Rate will be approximately 2.3% higher than customer bills on the Super Off-Peak Rate and 2.8% higher than customer bills on the TOD Rate since customers choosing the Flat Rate are more likely to use energy during expensive peak hours. However, every customer is unique, so customers will be given instructions on choosing the Flat Rate or Super Off-Peak Rate beginning 90 days before the 2024 rollout to their account. Customers will have access to tools to help estimate their savings on each of these options.
How can the public participate in considering the TOD Rate Proposal?
LIPA will hold two public hearings on February 21, 2023, where customers can sign up to speak. LIPA will also accept written public comments until February 27, 2023. Written comments can be submitted by emailing [email protected]. The proposal is scheduled for consideration at the March 29, 2023 meeting of the LIPA Board of Trustees in Uniondale, New York. Consideration by the Board of rate and tariff changes are held in open session and the public is always invited to attend and speak.

To learn more about Time-of-Day Rates, please read our informational fact sheet:

Timeline