Understanding LIPA’s New Time-of-Day Rates: What You Need to Know

The Long Island Power Authority (LIPA) is rolling out its new Time-of-Day (TOD) rate schedules starting in 2024. This transition aims to help the grid work better and save customers money by aligning electricity consumption with times of lowest electric demand and price. However, with these changes come important details that every LIPA customer should understand, including who is affected, how to opt-out, and what this means for households with unique rate schedules.

What Are Time-of-Day (TOD) Rates?

Time-of-Day rates adjust the cost of electricity based on the time of usage. Under this structure, customers pay lower rates during off-peak hours (e.g., evenings and weekends) and higher rates during peak hours when demand is highest (e.g.,weekdays from 3PM to 7PM). This initiative encourages customers to shift energy-intensive activities to off-peak times, potentially leading to lower energy bills and a more efficient energy grid.

Who Will Be Impacted?

LIPA’s new TOD rates will automatically be applied to most existing and all new residential customers, but there are notable exceptions:

1. Electric Heat Rate Customers: Customers on the electric heat rate schedule (580) will not be migrated to TOD rates.

2. Historical Time-of-Use Rate Customers: Those already on historical “Time-of-Use” rate plans will remain unaffected by the change.

Opting Out of TOD Rates

If you prefer not to participate in the new Time-of-Day rate structure, LIPA offers an opt-out option. Customers will receive email notifications about the upcoming migration, which will include a link to opt out.

Additionally, customers can call PSEG Long Island’s Customer Service at 800.490.0025 to request removal from the TOD program and return to a flat rate schedule (180). This ensures flexibility for households that may not find TOD rates compatible with their energy usage patterns.

How to Prepare for the Transition

To make the most of the new rates—or to determine whether opting out is the right choice—consider the following steps:

1. Evaluate Your Energy Usage:
   Review your household’s energy consumption patterns to understand how much electricity you typically use during peak and off-peak hours. If significant consumption is inevitable on weekday afternoons, Time of Day rates may increase your bills.

2. Migrate Usage to Off-Peak Hours: When feasible, schedule high-energy activities, like laundry, pool heating or EV charging, during times when rates are lower to maximize savings.

3. Explore Solar Options:
   Pairing TOD rates with a small home solar energy system may further reduce your reliance on the grid during peak hours, providing significant savings. A solar energy system large enough to offset all the consumption of a home eliminates the need for a TOD rate schedule and allows you to enjoy your free electricity at any time.

4. Stay Informed:
   Keep an eye on email notifications for updates from LIPA about your migration status and opt-out deadlines.

What This Means for Households

For most households, the new TOD rates can offer a way to save money by adjusting energy habits. However, if your energy usage primarily occurs during peak times, or you have a solar electricity system big enough to offset all of your consumption, opting out might be the better choice. The flexibility to remain on traditional flat rates or transition to TOD rates ensures that LIPA’s customers have options tailored to their needs.

Final Thoughts

LIPA’s Time-of-Day rates mark a significant shift in how electricity costs are managed, offering opportunities for cost savings and a more energy-efficient, lower carbon future. Whether you embrace the new rates or choose to opt out, understanding how TOD works is crucial to making the best decision for your household.

To learn more about how TOD rates work and their potential impact on your energy bills, check out our in-depth articles:

• LIPA Announces New Time-of-Day Rates Starting 2024

• What LIPA’s New Time-of-Day Rates Could Mean for Your Household

If you’re exploring solar options to maximize savings with TOD rates, reach out to GreenLogic today for expert advice on renewable energy solutions!