Homeowners often have a choice of electric service providers. Some offer fixed prices while others base their pricing on use rates. Here is some insight into this type of service to help you understand if it’s right for your household.

What Is Time of Use?

Time of use rates (TOU) refer to the cost of energy at a specific time. Electric costs are measured by kilowatt hours or kWh of electricity and vary based on the season, day of the week, and time of day. The busiest times are called peak hours.

Electric service plans that use TOU rates list what they consider peak and off-peak hours in their contracts. These rates may vary by as much as $0.06 per kWh, which can quickly add up.

The busiest times are often between 6 a.m. and 1 p.m., as people get ready for work and school, and 4 p.m. to 9 p.m., as people return home from work. During this period, there is a lot of strain on the electricity sources, hence the higher costs. 

What Are the Benefits of TOU? 

Families can lower their electricity bills by using appliances during off-peak hours. Plus, you’ll also help balance out local energy use by making this switch, lessening the strain on service sources, and improving electricity efficiency. Talk with your electric service provider to learn how to make the most of off-peak periods.

How to Adhere to Time of Use Requirements

Many families that use TOU electric service use timers for appliances, setting dryers and baseboard heaters to work only during off-peak hours. While charging your phone won’t take up much energy, consider running appliances like washers, dryers, lighting, and fridges during off-peak hours when possible. These options use the most kWh and will make a big difference on the utility bill if you pay attention to timing. 

Look into replacing appliances that are eight or more years old with newer, more energy-efficient models. Some families also purchase solar units with storage systems so their homes can use solar energy during peak hours for even more savings.

Homeowners interested in enrolling in TOU electric services should contact Jemez Mountains Electric Cooperative in Rio Arriba County, NM. Their web portal offers clients the convenience of applying, paying fees, and reading their policies online. Visit the website for information on their community-based service for industrial, commercial, and residential clients. Call the company at (505) 753-2105 to discuss switching.