News & Media

What is a Time of Use Energy Charge?

November 27, 2023

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“Time-of-Use” or “TOU” simply means that instead of a single rate for energy all day and night, there will be a different rate during two different time blocks each day. The cost and value of power is different in the on-peak block than in the off-peak block each weekday, and customers can choose to use energy in the off-peak block at a substantially lower rate. This could also affect the credit or compensation of customers who generate more electricity than needed depending on which Time-of-Use block the generation occurs within. In summary, TOU recognizes the different value of electricity depending on the time of day.