Time-of-use Rates

Time-of-use (TOU) rates

The California Public Utilities Commission (CPUC) has directed the transition of residential customers from the E-1 (Tiered) Rate to a Time-Of-Use (TOU) rate. California is advancing toward a clean energy future by purchasing energy from renewable sources such as wind, solar, and hydroelectric. Implementing time-of-use rates is another important step to move the State more quickly to 100% carbon-free energy. 

Time-of-use is important

Electricity demand peaks in the evening when solar generation tapers off and people start to cook/use household appliances. To provide for this dramatic increase in demand, typically fossil fuel power plants are used. With time-of-use rates, electricity is priced higher during this peak period, but lower during the rest of the day.

Benefits of time-of-use rate plans:

  • Lower electricity rates during off-peak (19 hours each day)
  • More control over your energy bill to reduce costs
  • Greater use of renewable energy and a reduction in carbon emissions
  • A path to a cleaner and healthier energy future 

Watch on Youtube
Agenda 0:00
Background 1:50
Rate options 4:46
TOU transition 17:57
Assistance programs 43:19
Q&A 47:49

E-TOU-C:
Peak pricing 4-9 p.m. every day

The E-TOU-C time-of-use rate plan has different prices for energy based on the time of day. Peak pricing is 4-9 p.m. every day, which is when electricity demand is highest. Prices are lower during off-peak times when overall electricity demand is lower.  You will save more by shifting your energy use, such as running the dishwasher and doing laundry, to the off-peak period.