How Time-Of-Use (TOU) Rate Periods Work
Time-Of-Use rates feature energy charges that vary by time of day, day of week, and season of year. Pricing is generally higher in late afternoon and evening hours on summer weekdays, and lower at night, in mornings, and in early afternoons. As California continues to adopt cleaner energy sources, Time-Of-Use rates can help lower your business’ energy bills by shifting more of your usage to off-peak rate periods.
Off-peak periods are:
- From 9 p.m. in the evening to 4 p.m. the following day (on Business TOU plans)
- From 8 p.m. in the evening to 5 p.m. the following day (on Agriculture & Pumping Optional TOU plans)
TOU rates are part of a statewide initiative to keep the electric grid reliable, even when energy resources are in high demand. Some TOU rates also feature demand charges based on the maximum amount of electricity your business uses at any moment.
Discover SCE's Time-Of-Use rate plans to optimize energy costs for your business.
Time-of-Use Rate Plans
June 1 to September 30 (4 months)
Standard Business TOU Periods
Agriculture & Pumping Optional TOU Periods
Tips to lower your bills with TOU rate plans
- Run ice machines at night and into the early afternoon to build up a large supply.
- Turn off office equipment and lights every night and weekend; if you can’t turn off computers, turn off monitors and printers.
- Use night covers on refrigerated display cases.
- Do laundry and waste-processing tasks before or after On-Peak hours.
- Charge battery-powered equipment before or after On-Peak hours.
- Pre-cool workspaces in the morning and early afternoon, then turn thermostats up during On-Peak hours.
Business TOU Frequently Asked Questions
Business TOU FAQ
TOU rates better align the cost of electricity to the time it is produced and the cost to deliver it when your business needs it. Pricing is generally higher in late afternoon and evening hours on summer weekdays.
You can help lower your costs by shifting energy use from the more expensive On-Peak hours to the Mid-Peak, Off-Peak, and Super Off-Peak hours of the day.
Customers with behind‐the‐meter (BTM) solar generating facilities may be eligible for TOU rates that retain discontinued TOU periods for 10 years from the date their systems were authorized to operate. To qualify for a discontinued TOU period, you must meet the following eligibility criteria:
● Your initial solar interconnection application must have been submitted by January 31, 2017. This deadline was extended for public agency customers to December 31, 2017.
● Your solar generating facility must be sized to offset at least 15% of your annual load.
Download the Discontinued TOU Rate Fact Sheet
One way to understand demand charges is to consider an example–imagine a single light bulb running for 10 hours. Now imagine 10 light bulbs running at once for 1 hour. Both situations use the same amount of electricity, but running 10 light bulbs at once increases the load demand on the electricity grid. This makes it more expensive for us to maintain the supply of energy. In some rate plans, your business can incur costs for the extra demand.
Facilities-Related Demand Charges apply year-round and are calculated per kilowatt (kW) according to the highest recorded demand during each monthly billing period, regardless of season, day of week, or time of day.
Time-Related Demand Charges apply year-round and are calculated per kilowatt (kW) according to the highest recorded demand during On-Peak and Mid-Peak hours, non-holiday weekdays. On-Peak TRD charges apply during the summer and Mid-Peak TRD charges apply during the winter.