Electric rates for business are changing
As part of a plan by the California Public Utilities Commission to ensure greater power reliability and a better energy future, businesses are moving to a Time-Varying Pricing electric rate structure.
Large Agriculture and Large Commercial and Industrial Business customers are already on Time-Varying Pricing. Small and Medium Businesses begin the transition to Time-Varying Pricing in November 2012. Small and Medium Agriculture Customers begin the transition in March 2013.
Under Time-Varying Pricing, two programs are being introduced: Time-of-Use Rates and Peak Day Pricing.
Instead of a single flat rate for energy use, time-of-use rates are higher when electric demand is higher. Higher demand periods are typically weekdays May through October, noon to 6 p.m. In return, time-of-use rates are lower at all other times.
This means that when you use energy is just as important as how much you use. If you conserve electricity in your business during peak hours, you can save money on your electric bills.
All business and agriculture customers will transition to a time-of-use rate as part of a statewide plan to help protect California’s energy resources.
Click here for more information about time-of-use rates.
Peak Day Pricing is an optional program where businesses agree to reduce energy usage on a few days throughout the year when demand is highest—between 9 and 15 "event days" annually. A higher rate is charged during peak times on event days.
In return, between May 1 and October 31, businesses receive credits for their electricity use outside of Peak Day Pricing event hours.
Click here for more information about Peak Day Pricing.
PG&E can help you reduce your energy use and improve your bottom line. Here are just some of the resources, tools and programs we offer to make energy management easier: