time-of-use rates

Time-of-use rates are energy pricing plans that charge customers different rates depending on when they use electricity. During peak hours—typically when demand is highest—rates are higher to reflect increased generation costs and encourage less consumption. During off-peak times, rates are lower, motivating consumers to shift usage to these periods, which helps balance the load on the power grid. This system promotes efficient energy use, reduces strain on utility infrastructure, and can lead to cost savings for customers who adjust their usage accordingly.