What are time-of-use (TOU) rates? How do they work?
Dec 6, 2023
Across the country, utilities are beginning to introduce innovative rate structures for residential energy consumers. These rate structures–from time-of-use rates to demand charges to real-time pricing–all have a common goal: to incentivize customers to consume energy when the cost of generating electricity is cheap and to disincentive energy consumption when the cost of generating electricity is high. As a result, understanding the ins and outs of a time-of-use rate can help you reduce your monthly cost of energy.
