4 Things You Need to Know About Time-of-Use Pricing

4 Things You Need to Know About Time-of-Use Pricing

Time-of-Use pricing is an electric rate schedule that adjusts the price of your electricity based on when you’re using it. During hours of high-energy usage, the cost of using electricity is higher as well, which more accurately reflects the cost of electricity on the grid at that time. Time-of-Use pricing is intended to encourage you to use electricity during times of the day when power is cheaper and demand is lower, helping to alleviate strain on the electric grid. Here are the top four things you need to know about time-of-use rates:

1. All customers will transition to time-of-use pricing in 2022.
As part of a statewide time-of-use transition, starting in March 2022, MCE customers that are not currently on a time-of-use rate will be moved into a time-of-use rate class. Approximately three months prior to being transitioned, you will receive a notification with information on how to opt-out of the transition as well as what rate options are available. A cost comparison of the available rate options based on your account’s historical usage will be provided. You will be able to try it risk-free with bill protection for 12 months and can switch at any time. You can also choose to opt in to time-of-use pricing ahead of the 2022 transition. 

2. The cost of energy will change based on when you use electricity.
Time-of-Use pricing more accurately reflects the cost of electricity at the time you consume it. This means electricity costs will vary based on the time of day and the season. In the evening hours electric demand goes up as we turn on our lights and cook dinner, resulting in higher, or “peak,” prices for energy. During the daytime hours consumption and demand are lower, resulting in lower, “off-peak” energy costs.

Visualizing Time-of-Use Pricing

3. Time-of-Use pricing can help you save money.
Running appliances like your washer and dryer during the lower-priced, off-peak hours is a simple way to start reducing your electricity bill. In addition to saving money, minimizing large appliance use during peak hours can also help reduce the strain on the power grid in your community. MCE can also help you save money with our energy efficiency services.

4. It benefits the environment too.
Time-of-Use pricing helps power grids run more efficiently by encouraging you to use electricity during off-peak hours when more renewable energy is available. Charging your electric vehicle and using major appliances such as washing machines and dishwashers during daytime off-peak hours helps use excess solar energy on the grid and keeps your bill low.

Find out which rate is best for you at by logging into your PG&E Account online.

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