How Time-of-Use Electricity Rates Work

Three parts of a time-of-use plan

Utilities divide the day into price windows. Peak periods are the most expensive, off-peak periods are cheaper, and some plans add a shoulder period between them. Schedules can differ by season, weekday, holiday, and service territory.

Estimate a shift

Multiply the energy moved out of the peak window by the difference between peak and off-peak prices.

Start with flexible loads

EV charging, dishwashing, laundry, pool filtration, water heating, and battery charging may be movable without sacrificing comfort.

• Confirm the exact schedule for your rate plan.
• Account for weekends and seasonal changes.
• Do not delay equipment needed for safety, sanitation, or comfort during extreme weather.

Demand charges are different

Some plans also charge for the highest short interval of power demand. Simply moving several large appliances to the same off-peak hour can reduce energy charges but increase a demand charge, so read the complete rate design.