PSEG-LI touts ‘time-of-day’ rates save customers cash

PSEG Long Island is hoping to move away from flat rate billing and is instead offering residential customers an option that it calls “time-of-day” rates, which utility services provider says will cost them less.

“Flat rates offer customers the same price regardless of the hour of the day or the day of the week,” said Brian Kurtz, manager of customer service, who was among PSEG officials who spoke at a recent Riverhead Town Board work session.

Up to now, PSEG-LI customers have routinely been charged a standard flat rate per kilowatt hour for residential electric service. By contrast, Mr. Kurtz said, time-of-day billing would charge customers a lower rate for electricity consumed at specific off-peak times.

Under the new time-of-day system, electric usage on weekdays between 3 and 7 p.m., considered peak hours, will be billed at the standard rate. The other 20 hours of each weekday will be billed at the new reduced rate.

All electric usage on Saturdays, Sundays and federal holidays will also be billed at the lower, off-peak rate, according to Mr. Kurtz, who said a shift to off-peak power usage will help reduce reliance on backup power plants, which are less efficient to run.

Mr. Kurtz noted that not all PSEG-LI customers are eligible for optional time-of-day billing, including those whose homes do not have “smart meters.” Visit for more information.