Source: EIAData: 2024Updated: Jun 2026Methodology
Rate plansGuide

Time-of-use electric rates: when they help and when they do not

Time-of-use electric rates compared with peak pricing, off-peak usage, and household bill risk

Jun 7, 2026 - wattbenchs Data Desk

Time-of-use pricing rewards households that can move flexible loads away from peak windows. It can punish households whose largest loads happen exactly when the price is highest.

time-of-use electric ratesTOU ratespeak pricingoff-peak electricitydemand response

What TOU means

The price per kWh changes by hour or block of hours. A TOU plan can be useful when laundry, dishwashing, EV charging, or pool pumping can move to cheaper windows.

Peak vs off-peak

Peak windows can be several times more expensive than off-peak windows. The plan is not automatically good or bad; it depends on whether your actual usage can shift.

Who should avoid it

If someone works from home during the peak period, if medical equipment requires steady power, or if cooling cannot be shifted, a flat benchmark may be easier to manage.

Client-side tool · PII 0

California example estimator

California

Estimated monthly bill

$159$231

Midpoint about $178 at 31.8¢/kWh.

Vs national avg+93%
ND annual gap$1,428
Estimate based on average rates. Excludes fixed fees, tiered/TOU pricing, and specific plans. Your actual bill may differ.

Next step

Use the estimator with your monthly kWh usage, then compare your result with state benchmarks before making billing or assistance decisions.

Quick answers

Do TOU rates always save money?

No. They save money only when enough usage moves to cheaper hours.

Author

wattbenchs Data Desk publishes consumer-facing explanations based on public EIA data, visible methodology, and conservative bill estimates. This article was written directly in Codex without external API or external LLM prose generation.