Here's what time-of-use rates mean for your business
Instead of a single flat rate for energy use, time-of-use rates are higher when electric demand is higher. This means when you use energy is just as important as how much you use.
Winter has two rate periods: off-peak and partial-peak. Summer has three: off-peak, partial-peak and peak. During peak periods, defined as weekdays from noon to 6 p.m., May through October, your business's electric rates will be higher. In return, time-of-use rate plans at all other times will be lower than the peak rate.
All business customers will transition to time-of-use rate plans over the next several years, as required by the California Public Utilities Commission.
To learn more about peak periods and how time-of-use works, see the Time-of-Use Frequently Asked Questions section.
Use this interactive chart to learn how time-of-use rates will affect your business.
Choose Winter or Summer. Drag slider to compare on- and off-peak rates.*
Some time-of-use rate plans include Demand Charges. If your time-of-use electric bill shows a monthly Demand Charge, you can find out more here.
To help keep the supply of electricity reliable in California, some time-of-use rate plans, like A10 time-of-use, include a Demand Charge to encourage businesses to spread their electricity use throughout the day. This Demand Charge is calculated by using the 15-minute interval during each billing month when your business uses its maximum amount of electricity. As a benefit to this type of rate plan, regular electricity usage charges are approximately 25% lower than for a comparable rate plan without a Demand Charge--giving you the opportunity to save on your bill if you can lower your highest usage 15-minute interval.
The Demand Charge reflects the maximum amount of electricity you used during any 15-minute interval over the course of a billing period, and can vary depending how and when you use your equipment from month to month. One way to lower your monthly Demand Charge is to stagger times at which you use equipment, rather than using all your equipment at the same time, thereby minimizing spikes in your electricity use. Depending on your business type, it may be possible spread your electricity use throughout the day to lower your Demand Charge.