Time of Use








Time of use is a metering concept based around changing your usage behavior to not only lower your costs, but the costs of the utility as well. What is time of use? How can you take advantage and benefit from time of use? How does the utility benefit from time of use? These are three important questions that surround the time of use concept.

What is time of use?

Time of use is actually a very simple concept. Utilities use on peak periods and off peak periods. On peak periods are those periods during which the utility normally hits their peak. This is defined as a time period. For instance, the on peak period could be from 2pm – 5pm, Monday – Friday. In this example, the off peak periods would be everything outside 2pm – 5pm, Monday – Friday. Or, the periods of time in which the utility does not peak.

These time periods are typically have names with letters such as, period A or B. The electric meters are programmed with these time periods. Typically these meters have more than one register reading that is displayed. The readings that are displayed are for the different time periods.

In a time of use rate, on peak and off peak prices are different. On peak prices are more expensive than off peak prices. This is to encourage businesses and even some individuals to change their usage during these times. Which leads to the next point.








How can you take advantage and benefit from Time of Use?

To take advantage of time of use and reap all of the benefits you need to do a study of your usage. Some utilities will provide you with this service free of charge. They will install a load profile meter (often called a load survey meter). After a few months you can view the data. The data lets you know what times during the day you use the most power. Armed with this information you can make decisions about the available time of use rates offered by your utility.

It may be that you can come in an hour earlier to avoid hitting that peak. Or maybe completing some of your processes in the morning instead of the afternoon. The data lets you know.

Time of use offers a discount during off peak times. This is where the big advantage lies. Compare the prices of on peak versus off peak for the rates at your utility. You can save big. But beware, once your are on a time of use rate usage during the on peak time are higher.

How does the Utility benefit from Time of Use?

The utility benefits by being able to shift some load to off peak times. Looking at the utility’s consumption on a line graph shows when they peak. The normal line graph has peaks and valleys. They too are billed on the peak. Or if they generate their own power when the peaks are high they have to bump up their generation. Ideally, looking at a line graph, a utility wants their line to be straight. This means that the generation is constant. Moving some customers from on peak periods to off peak periods is one way of achieving this. The utility benefits from the lower cost of generation or price and passes that on to the customer.

In conclusion, time of use is a rate structure that is comprised of on peak and off peak time periods. It can be a great way for customers to lower their bill by shifting some of their normal routines. Utilities benefit by being able to shift some of their on peak load to off peak times thus reducing their overall demand costs as well.