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Upcoming Event:
Wednesday, June 26, 2024 | 8:15 AM – Finance and Audit Committee Meeting – LIPA, 333 Earle Ovington Blvd. 4th Floor, Uniondale, NY 11553

Time-of-Day Rates

On March 29, 2023, the LIPA Board of Trustees voted to modernize its standard electric rate for residential customers, beginning in 2024 with a new Time-of-Day (TOD) Rate. Under this new standard rate, customers can save money and support the transition to clean energy on Long Island and the Rockaways. Customers will also have the option to stay on a Flat Rate or enroll in a Super Off-Peak Rate. With the 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 can save more. 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 has introduced 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.

Customer Communications

LIPA’s service provider, PSEG Long Island, will be conducting extensive outreach to all customers before they are transitioned into the new rate. Customers will receive notice 90, 60, and 30 days before they are scheduled to transition to the TOD Rate in 2024 and 2025. 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. For more information, visit psegliny.com/timeofday.

Public Comments and Outreach

While developing the TOD proposal, LIPA proactively sought feedback and received input from customers and stakeholders. Members of the public were invited to participate in the process by taking part in two public hearings held on February 21, 2023. Written public comments were accepted through February 27, 2023. The public also had the opportunity to address the LIPA Board regarding the proposal at its regularly scheduled meetings. Please see below to view the public comments submitted before the new rate structure was approved.