Times are changing when it comes to electric rate plans. Time-of-Use (TOU) plans are one of the most common rate programs being used to reduce stress on the grid, decrease carbon emissions and save you money. Learn more about these innovative pricing plans and what they can do for your business.
How do they work?
TOU plans charge you for electricity based on when you use it during the day, the season and day of the week. Rates are higher during times of "peak demand" and lower during "off-peak" times.
A standard billing plan will multiply your total monthly usage by a single electricity rate. TOU plans assign a different rate to set periods throughout the day, and your bill is calculated by multiplying the amount of electricity used during certain hours by the rate specific to those hours.
On-peak vs. off-peak
On-peak demand includes times when demand for electricity is the highest. On weekdays, this is usually early in the morning — when people get ready for work — and in the late afternoon and evening — when people head home.
Off-peak hours include weekends and late nights when people are asleep and not using a lot of electricity.
How can it help you save?
Using appliances and equipment during hours when electricity is the least expensive can save your company money. Businesses that use at least 50% of their electricity during off-peak times can see significant savings on their energy bills. These simple fixes can help you make the most of your TOU rates:
- Plug electronics into smart power strips that can turn the devices off if they're not in use during peak hours.
- Program your thermostat to reduce energy use during high-demand times. Wi-Fi models provide remote control, adding convenience.
- Lower your overall energy usage by closing blinds to keep out afternoon heat, adding occupancy sensors to meeting rooms and more.
Is Time-of-Use right for you?
Under our Time-of-Use program for business, the off-peak hours are 9 p.m. to 9 a.m., so you need to consider when you use the most electricity. An ideal customer doesn't stick to traditional "business hours." For more information, check out our plan details and rates.