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Time-of-Use Rates for Business

Agriculture and Pumping Button


How Time-Of-Use Rates Work

Time-Of-Use (TOU) is part of a statewide initiative designed to keep the electric grid reliable so everyone will have power when they need it. Unlike current energy rates, TOU rates vary depending on the season and the time of day the energy is used.

Additionally, some TOU rates are calculated based on both your energy demand and consumption. While Demand Charges generally reflect our fixed costs, Energy Charges (consumption) reflect the variable costs you incur during the times your business actually uses available power.

Man adjusting the thermostat

Time-Of-Use Rate Periods

There are now different TOU rates depending on the season and the time of day the energy is used. They more accurately reflect the costs of energy at the time it is used. With TOU rates, when you use electricity is as important as how much you use.

The greatest demand on the grid is during on-peak periods. If you can shift energy use to off-peak or mid-peak times, you help reduce strain on the grid.

Graph with weekday peak hours. Highest peak between noon and 6pm.

Summer Time-Of-Use Hours

Begins June 1 and continues through October 1.

Graph of winter peak hours. Peak between 8am and 9pm.

Winter Time-Of-Use Hours

Begins October 1 and continues through June 1.

Note: The lower off-peak rate applies on holidays. When any holiday falls on Sunday, the following Monday will be recognized as a holiday. Holidays are New Year’s Day, President’s Day, Memorial Day, Labor Day, Veteran’s Day, Thanksgiving Day, and Christmas.


Energy-Saving Tips By Business Type

Our experts have put together many effective ways you can reduce your energy use by specific business types. Take a look to learn more:



Interior image of office building.

Brookfield Office Properties reduced its energy use by nearly 75% with a combination of energy-efficient lighting and controllable lighting equipment.

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Did you know?

Energy usage represents as much as 30% of overall operating costs in office buildings.1 We help retailers find smart energy - and cost-saving solutions to control energy.

1E Source: Data from the U.S. Energy Information Administration April 12, 2010.

Food Processing


Image of freshly baked loaves of wheat bread on a cooling rack.

Huy Fong Foods, manufacturer of hot sauces—including the highly popular Sriracha Hot Chili Sauce—installed over 600 energy-efficient lighting fixtures and a large number of roof skylights. These upgrades have saved more than 1.4 million kilowatt hours of energy.

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Did you know?

75% of electricity costs at food facilities occur in processing and assembly systems.1

1E Source: Data from the U.S. Energy Information Administration.



Two momen in a healthcare setting discussing documents over the computer.

Did you know?

The healthcare industry is very energy-intensive and, on average, hospitals use roughly twice as much energy use per square foot as medical office buildings.1

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1E Source: www.esource.com



Image of a farmer smiling at the camera while holding a basket of limes

Pitigliano Farms pumped up $80,000 savings on their energy costs.

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Did you know?

8 million agriculture acres in California consume 80% of the total water pumped in the state.1

1E Source: Data from the U.S. Energy Information Administration.



Immage of two professional women in an office setting shaking hands

City of Rancho Mirage saves 308,500 kilowatt-hours in Electricity over a four year period.

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Did you know?

Government buildings use 13% of total office energy use in the United States, and energy represents as much as 30% of a building’s operating costs. In all, state and local government agencies spend more than $12 billion per year on energy.1

1E Source: Data from the U.S. Energy Information Administration.

Water and Wastewater


Image of desalination plant purifying water.

Did you know?

Aeration is the single largest energy user in the wastewater treatment process and it can account for 45 to 75 percent of a wastewater plant’s total electricity consumption.1

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1E Source: Data from the U.S. Energy Information Administration.

Eastern Municipal Water District saves 10.4 million kWhs from energy-efficiency projects




Forest City Enterprises’ three malls reduced their energy use by 15% participating in demand response and using upgraded, energy-efficient lighting and air-conditioning (A/C) system controls.

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With SCE’s Express Solutions refrigerator and lighting upgrades, Valencia Liquor was soon saving almost 10% annually on their electric bill.

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The Royal Vista Golf Club upgraded its kitchen equipment, saving them $2,000 in annual energy costs.

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Shmaze Custom Coating received energy-saving equipment upgrades and earned $51,500 in incentives and demand response bill credits.

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In Southern California, Marriott's Select Service and Extended-Stay hotels made significant upgrades with energy-efficient equipment and earned $495,000 in incentives.

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Viewpoint School earns A+ in enhancing sustainability and saving nearly 87,000 kWhs.

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Auto-DR and Savings By Design put Railex® on energy-saving track with over $222,240 in incentives.

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Data Centers


Three men walking through data center

CenturyLink enhances performance with efficiency measures with savings of more than 2.1 million kilowatt-hours (kWh).

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Find fast answers to the most common questions regarding TOU.

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