The How and Why of Time-of-Use Rates
How Does Time-of-Use Work?
Above is an example of how time-of-use rates work. As you can see, rate structures are broken up by season. Summer rates are higher because people use more electricity to run things like their air conditionings and swimming pools. Time-of-use rate structures are intended to mimic average consumption. That means you’ll be charged the most for electricity when you’ll likely need it the most.
On a time-of-use rate structure, what you pay per kilowatt hour changes throughout the day. How much electricity you use doesn’t matter as much as when you use it.
Why Should I Care?
This rate structure isn’t always beneficial. Going solar locks you into you an agreement with your utility. Mandatory time-of-use rates are not yet in effect, so there’s still time to get grandfathered into the current structure.