Billing
Time-of-Use Rate
Definition
A utility pricing structure where electricity prices vary by time of day — typically higher during peak demand hours (afternoons on weekdays) and lower during off-peak periods (nights, weekends). Also called TOU rates.
Why It Matters for Your Business
Under TOU rates, shifting energy-intensive activities — EV charging, HVAC pre-cooling, manufacturing processes — to off-peak windows can significantly reduce electricity costs without reducing overall consumption. Buildings with battery storage can capture peak pricing arbitrage.
Frequently Asked Questions
When are peak hours under TOU rates?
Peak windows vary by utility but most commonly run 4–9 PM on weekdays. Some utilities define separate "super-peak" windows (e.g., 2–6 PM in summer). Always check your specific tariff schedule.
Is TOU available to all commercial customers?
Availability depends on your utility and service territory. Many utilities are expanding TOU options — especially for customers with smart meters. Some tariffs mandate TOU for large commercial accounts.