Time of Use Rates Proceedings

Time of Use (TOU) rates are designed to give electric utility customers options to save money by lowering electricity bills by adjusting their use patterns to use more electricity (e.g. by running high-energy use appliances) when the rate is reduced and less during on-peak hours. On-peak periods are set when demand is highest and  costs are greater to generate and deliver energy. When demand is low, the cost of electricity is generally lower because there is less stress on the electricity grid and cheaper energy sources are available. For example, wind generated electricity is typically more available overnight and it is less expensive to produce and distribute at that off-peak time.