Time-of-use (TOU) rates
The California Public Utilities Commission (CPUC) has directed the transition of residential customers from the E-1 (Tiered) Rate to a Time-Of-Use (TOU) rate. California is advancing toward a clean energy future by purchasing energy from renewable sources such as wind, solar, and hydroelectric. Implementing time-of-use rates is another important step to move the State more quickly to 100% carbon-free energy.
Time-of-use is important
Electricity demand peaks in the evening when solar generation tapers off and people start to cook/use household appliances. To provide for this dramatic increase in demand, typically fossil fuel power plants are used. With time-of-use rates, electricity is priced higher during this peak period, but lower during the rest of the day.
Benefits of time-of-use rate plans:
- Lower electricity rates during off-peak (19 hours each day)
- More control over your energy bill to reduce costs
- Greater use of renewable energy and a reduction in carbon emissions
- A path to a cleaner and healthier energy future