Q: What are time-of-use (TOU) rates and off-peak charging?
Peak charging refers to periods of time throughout the day when electricity consumption is at its highest. While this can vary depending on region or season, most peak charging occurs in the early evening, when consumers return to their residences and consume electricity for home activities like cooking, drying clothes, entertaining/gaming, and electric vehicle charging. In the summer, peak consumption can also occur in mid-day and throughout the afternoon when temperatures are high and consumers utilize air conditioning. Nighttime hours from about 9:00 pm to 5:00 am in the morning are often considered off-peak hours when the demand for electricity is decreased. Time-of-use (TOU) rates or pricing refers to a schedule set by the utilities to reflect higher costs of energy usage based on peak charging hours. Lower TOU rates may apply to periods of time when an area’s collective use of energy is low while higher TOU pricing may occur during periods of peak demand for electricity. EV drivers may decide to charge their vehicles when TOU rates are low. To learn more about peak hours and TOU rates that may apply to your energy usage, please contact your electric utility.