Time of Use Electricity Pricing Plans Save Energy and Save Electricity.

A time-of-use (TOU) electricity pricing program gives electric customers a different price rate for using electricity at peak and off-peak hours.

Many utility companies now offer this plan. Often times it requires the installation of a separate electric meter, so there may be a small monthly fee, such as $1-$2 per month, added to your electric bill. Just call your utility and ask them.

The Time of Use pricing plan for many customers serves as a very effective way to save electricity. This plan should result in a lower electricity bill for consumers, but the key is you must be able shift some of the electricity that you use from peak periods to off-peak periods. Otherwise, in some cases, you could end up paying more for your electric bill.

For example, a typical family of three uses about 80 kWh per month on their clothes dryer. Under some plans, such as PGE’s Time of Use option, on-peak usage for this period would equal $8.55. Mid-peak usage would equal $4.96, and off-peak would result in a cost of $2.84. So if you use your clothes dryer at off peak, which is typically after 9pm, or all day Sunday, then you would save $6 per month on your electricity bill, just on this one appliance.

Each utility company and its Time of Use electricity pricing plan will have different times of the day that they consider to be on peak or off peak, and they will have different rates for those times.

Even so, if you research the plan to ensure it meets your needs, sign up, and make the small commitment to following it, studies have shown that they are a way to save 5-10% off your electricity bill, and save the U.S., as a nation, $10 billion to $15 billion per year on lower energy costs.