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What is "Time of Use" (TOU)? The idea is to get people to shift or reduce electricity consumption at peak demand times. The peak times are generally weekday afternoons between 2 pm and 6 pm. Less demand at peak times has an immediate benefit to utilities by reducing how much generating capacity they need to meet consumer demand. For being a TOU customer, the utilities are willing to reward you for helping to "shave the peak" by offering reduced rates at times when energy is more readily available. By switching to TOU rates, you may be able to dramatically slash your electric bill. Here"s how. A TOU customer agrees to pay a higher electrical rate during weekday peak-use hours when nobody is home. In return, the customer will be charged a much lower rate at night, in the morning, and on weekends. So, if you keep your home daytime electrical appetite low, you can deposit the savings. |