Power is generally cheapest during Off-Peak hours, which typically include before 4 p.m. and after 9 p.m. on weekdays, and all hours on weekends and most holidays. This pricing structure is part of what's known as Time-of-Use (TOU) rate plans, where the cost of electricity changes based on the time of day, day of the week, and even the season.
Understanding Time-of-Use (TOU) Rates
Electricity providers often implement Time-of-Use rate plans to reflect the actual cost of generating and delivering electricity at different times. During periods of high demand, such as late afternoons and early evenings when many people return home from work and use appliances, electricity becomes more expensive. Conversely, during times of lower demand, power prices drop.
Cheapest Power Times (Off-Peak)
To encourage customers to shift their energy consumption away from high-demand periods, utility companies offer lower rates during "Off-Peak" hours. These are the periods when electricity demand is lowest, and therefore, the cost to the utility (and thus to the consumer) is also at its minimum.
Here's a breakdown of typical pricing periods:
| Period | Time of Day | Days Covered |
|---|---|---|
| Off-Peak | Before 4 p.m. and After 9 p.m. | Monday through Friday |
| All hours | Weekends and most holidays | |
| Peak | 4 p.m. - 9 p.m. | Monday through Friday (except most holidays) |
By understanding and utilizing these off-peak periods, consumers can significantly reduce their electricity bills.
Maximizing Savings with Off-Peak Usage
Shifting energy-intensive activities to off-peak hours is an effective way to lower your overall electricity costs. Here are some practical tips:
- Run Major Appliances: Schedule dishwashers, washing machines, and dryers to operate before 4 p.m. or after 9 p.m. on weekdays, or any time on weekends and holidays.
- Charge Electric Vehicles (EVs): If you own an EV, charge it overnight or during the day on weekends to take advantage of the cheapest rates.
- Programmable Thermostats: Use smart or programmable thermostats to pre-cool your home before peak hours, or adjust heating/cooling during off-peak times.
- Water Heating: If you have an electric water heater, consider a timer to heat water during off-peak times, reducing the need for heating during peak hours.
- Delay Usage: Postpone non-essential activities that use a lot of power until off-peak hours whenever possible.
Understanding your specific utility's Time-of-Use rate plan is crucial for maximizing savings. For more detailed information on specific rate plans, you can often find resources directly from your local utility provider, such as the Time-of-Use Rate Plans offered by many companies.
