To Peak or Off-Peak, That is the Question!

We have spoken of the time-of-day electric rates recently offered to residential electric consumers by a number of public utilities. This same rate structure has been available to large commercial/industrial users for a number of years with questionable results.

The concept was to try to induce consumers to move their electric use from normally heavy use hours to other times in an attempt to shave the utilities’ peak loads. In the business sector this has been difficult. Loads were reduced – which helped, but commercial hours of operation were not as flexible as desired.

However – at home it is a different story. While we can’t turn off the heat on winter days, we can certainly hold off air-conditioning when that’s in season, especially when everyone’s at work or school. Moreover, clothes and dish washing and clothes drying can be done at night. Most major usage can be timed away from the utility’s peak.

So what are considered “peak” hours? Unfortunately there is great disparity around the nation.
Some examples and perhaps a reason for FERC or DOE to become involved to mandate some uniformity.

Duke, N Carolina 1pm to 9pm M-F Summer 6am to 1pm M-F Winter

Con Ed NYC 10am to 10pm M-F all year

UI and CL&P/ CT 12 noon to 8pm M-F all year

SO Cal Edison 10am to 6pm M-F all year

Detroit Edison 11am to 7pm M-F all year

Baltimore 10am-8pm M-F summer 7am-11am/5pm-9pm winter

There are others and some employ a medium rate for what are called “partial peaks” which occur on weekends or other moderate use times.

The real impact is that the energy rate ($/kwhr) is lower during the off-peak hours than during peak hours. In Connecticut the cost drops from 14.3 cents/kwhr to 10.7 cents.

In Detroit it goes from 7 cents to 2 cents: NYC in Summer from 10.54 cents to 0.70 cents- but remember that in NYC the peak runs 12 hours until 10pm.

The result is that in many areas today considerable savings are possible using the time-of-day rates. Once again – contact your public utility or private energy provider.