PSEG Long Island to Automatically Enroll Customers in New Time-of-Day Rate Plan by End of 2025

LONG ISLAND, NY – PSEG Long Island is moving forward with a major change to how electricity is billed, phasing in a new Time-of-Day (TOD) rate structure for all residential customers. The utility will automatically enroll households in the new plan unless they choose to opt out, with the full rollout expected to be completed by the end of 2025.
Under the new TOD system, customers will pay different rates for electricity depending on the time of day it is used. Electricity will cost the most during peak hours, defined as weekdays from 3 p.m. to 7 p.m., and significantly less during off-peak hours, which include all other weekday hours, weekends, and federal holidays. For customers who opt into the Super Off-Peak Rate, overnight usage from 10 p.m. to 6 a.m. will be discounted even further – potentially saving up to 40% compared to the current flat rate.
PSEG says about 88% of the year falls into off-peak pricing windows, offering most customers an opportunity to reduce their bills by shifting their energy usage away from the late-afternoon peak period.
To protect customers from unintentional overpayment, PSEG is offering a 12-month Bill Protection Guarantee. If a household ends up paying more on the TOD rate than it would have on the flat rate, the utility will credit the difference at the end of the first year.
The transition supports Long Island’s broader goals of grid reliability and environmental sustainability. Reducing demand during peak periods can alleviate stress on the electrical grid and cut carbon emissions, especially when paired with smart energy management tools. PSEG has partnered with Bidgely, a technology firm, to offer AI-powered usage insights to help customers adjust their consumption patterns in real time.
So far, over 2,000 electric vehicle owners have already moved 90% of their charging to off-peak hours, showcasing how the system could encourage cleaner, more cost-efficient energy habits across the region.
Ahead of the mandatory switch, PSEG is conducting customer outreach through public hearings, mailings, and online tools. Customers will receive multiple notifications 90, 60, and 30 days before their scheduled enrollment, and multilingual support will be available. An online calculator and mobile app are also available for residents to compare costs and decide whether to remain in the new program or opt out and stay on the flat rate.
The TOD plan is designed to modernize Long Island’s energy use and reward customers who shift energy consumption away from peak periods, ultimately reducing costs and supporting a more resilient electrical system.
Top Questions About PSEG Long Island’s New Time-of-Day Rate Plan
- Q: What is the Time-of-Day (TOD) rate plan?
A: The TOD plan charges different rates based on when electricity is used. Peak hours (3 p.m. to 7 p.m. on weekdays) are the most expensive, while nights, weekends, and holidays are billed at lower off-peak rates. - Q: When will I be enrolled in the TOD plan?
A: PSEG Long Island is automatically enrolling residential customers in phases through December 2025. You will receive a 90-day notice before your switch date. - Q: Can I opt out of the TOD rate?
A: Yes. Customers can opt out and remain on the standard flat-rate plan. Tools are available online or through PSEG’s customer service to help you decide. - Q: What is the “Super Off-Peak” rate?
A: This optional plan offers even lower rates for electricity used between 10 p.m. and 6 a.m. It is ideal for those who run appliances or charge electric vehicles overnight. - Q: Will my bill increase under the TOD plan?
A: Not necessarily. Customers who shift their energy usage to off-peak hours may lower their bills. PSEG also offers a 12-month Bill Protection Guarantee that credits customers if they end up paying more under TOD than they would have on the flat rate. - Q: How can I tell if TOD will save me money?
A: PSEG provides a rate calculator and mobile app to help you compare your current usage with TOD pricing. These tools analyze your patterns and suggest the most cost-effective option. - Q: What are considered peak and off-peak times?
A: Peak hours are weekdays from 3 p.m. to 7 p.m. All other times—including nights, weekends, and federal holidays—are off-peak. - Q: Why is PSEG making this change now?
A: The TOD plan supports energy conservation, reduces strain on the grid during high-demand hours, and aligns with Long Island’s clean energy and carbon-reduction goals. - Q: Will I get notified before my rate changes?
A: Yes. PSEG will send out notifications 90, 60, and 30 days before your TOD enrollment, with information on your options and how to opt out if desired. - Q: Where can I get help understanding my options?
A: Customers can visit the PSEG Long Island website, call customer support, or attend local informational sessions. Translations and multilingual materials are also available.