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The Power of Timing: How Smart Energy Use Can Lower Your Bills


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Did you know that the cost of electricity often varies based on the time of day? Many utility companies use Time-of-Use (TOU) pricing, meaning energy rates fluctuate depending on demand. By being aware of these peak and off-peak periods, consumers can adjust their energy usage to lower their electricity bills and reduce strain on the grid.


How Time-of-Use Pricing Works

Rather than a flat rate for electricity, TOU pricing divides the day into different pricing periods:

  • Off-Peak Hours: When demand is lowest, usually late at night or early morning. Electricity is cheapest during these hours.

  • Mid-Peak Hours: Moderate demand periods where energy rates are slightly higher than off-peak.

  • Peak Hours: When energy demand is highest, typically during late afternoon and early evening. Electricity costs the most during these hours.

By shifting energy-intensive activities—such as running dishwashers, washing machines, or charging electric vehicles—to off-peak hours, consumers can significantly reduce their electricity bills.


Time-of-Use Pricing in Action

TOU pricing varies by location and utility provider. Here are some examples:

  • Con Edison (New York City)

    • Off-Peak: Midnight – 8 AM (Lowest rates)

    • Peak: 8 AM – Midnight (Higher rates)

    • Super-Peak (Summer Only): 2 PM – 6 PM, Monday – Friday (Highest rates)

    • Source

  • ComEd (Illinois) – Time-of-Day Pricing Plan

    • Off-Peak: 10 PM – 6 AM (Lowest rates)

    • Peak: 6 AM – 2 PM & 7 PM – 10 PM

    • Super-Peak: 2 PM – 7 PM (Highest rates)

    • Source

  • PSEG Long Island

    • Peak Hours: 4 PM – 8 PM, weekdays

    • Weekends & Holidays: Off-Peak all day


Maximizing Savings with TOU Pricing

To take advantage of TOU pricing, consider:

✅ Running large appliances like dishwashers and washing machines during off-peak hours.

✅ Charging electric vehicles overnight when rates are lower.

✅ Using programmable thermostats to optimize heating and cooling based on energy rates.

✅ Checking with your utility provider for specific TOU plans and potential savings programs.


Stay Energy Smart and Save!

By being mindful of peak and off-peak hours, consumers can make informed decisions about energy usage, lowering their costs while contributing to a more stable energy grid. Since TOU pricing varies by region and provider, it’s always a good idea to check with your local electricity provider for details.


Sources:


https://www.coned.com/.../accounts.../your-bill/time-of-use


https://www.ohmconnect.com/.../why-is-my-electric-bill-so...


https://www.nyseg.com/.../electricpricing/day-night-rate


https://www.nyserda.ny.gov/Res.../At-Home/Energy-Saving-Tips


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