Time-of-Use (TOU) rates charge different prices for electricity depending on when you use it. Understanding how TOU works can help you decide if it's right for your household.
How TOU Works
Electricity costs more during peak demand periods and less during off-peak times:
- Peak Hours: Typically weekday afternoons/evenings (highest rates)
- Off-Peak Hours: Nights, early mornings, weekends (lowest rates)
- Shoulder Hours: Transition periods (moderate rates)
Who Benefits from TOU
- Customers who can shift laundry, dishwashing to off-peak hours
- Electric vehicle owners who can charge overnight
- Homes with battery storage systems
- Customers away from home during peak hours
TOU May Not Be Right If...
- You work from home and use electricity during peak hours
- You have medical equipment that runs continuously
- You can't easily shift major appliance usage
- Your household schedule is inflexible