Time-of-Use (TOU) business

Take control of your electricity usage with a TOU monthly pricing plan.

Save money and help support a cleaner environment by shifting your business’ electricity use away from peak usage periods. At this time, commercial TOU rates are available for Large General Service and Industrial customers only.

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You can reduce your business’ energy costs simply by changing when you use certain pieces of equipment and when you perform other electricity-consuming activities with TEP’s Time-of-Use rates, which allow customers to pay less for power at certain times of the day. Determining if a TOU rate is right for you will depend on when and how you use energy. By shifting the majority of your usage to off-peak times, you can save money on your monthly energy bill.

How does Time-of-Use work?

Time-of-Use works by shifting energy usage from higher-priced (on-peak) time periods to lower-priced (off-peak) time periods. Small business customers who shift their usage will benefit with reduced pricing during off-peak hours. So first shift, then save.

Enrolling in a TOU pricing plan is free, including the installation of a new electric meter. With TOU, the time of day will determine how much you pay for each kilowatt-hour (kWh), so the new meter will track your actual time of use. When calculating your bill, TEP will apply the appropriate rate to the kWh used in each different time period.

Changes in your energy habits may be necessary. Timing is everything! The more you are able to shift usage away from peak hours, the better off you’ll be. Savings will vary based on your usage patterns.

Time-of-Use helps all of us

By conserving and shifting your usage, you also help reduce the need for TEP to build and operate new power generation stations, which saves everyone money and even helps protect the environment.

Signing up is fast and free


Could Time-of-Use rates end up costing me more every month?

Yes, it is possible. It is more likely that you will see higher bills in some months offset by lower bills in other months. What's important is whether your lower bills more than offset your higher bills, and that you see a net savings over the entire year.

Time-of-Use rates are offered as an incentive to shift your electric use from peak to off-peak hours particularly during the summer. Being on the Time-of-Use rate will require you to make adjustments in your daily routine. If you don't change your energy usage patterns, you could pay more or you may come out about even on this rate. If you control peak usage, you may end up saving in some or all of the months.

Air conditioning accounts for a substantial portion of my bill – can I still benefit?

To achieve the best savings on aTime-of-Use plan, you will need to control your air-conditioner usage during summer peak periods 2-8 PM in May through September. If air-conditioning makes up a major part of your load, and you cannot control usage during the summer peak and shoulder periods by setting thermostats to a higher temperature, then carefully consider whether Time-of-Use rates are right for you.

Do Time-of-Use rates help me save during the winter?

Our experience is that customers are more likely to save under time-of-use rates during winter periods. In our desert climate, customers typically are more willing to set thermostats to a lower temperature during peak winter periods (November through April). Thats why we suggest you consider an entire year of electricity usage to decide whether you might benefit from Time-of-Use rates.

My business is open during typical business hours – can Time-of-Use rates work for me?

It depends on whether air conditioning accounts for the bulk of your usage, and whether you can realistically alter your air conditioning settings. Typically, small retail businesses are NOT good candidates for Time-of-Use rates because many retail businesses are unwilling to set thermostats to higher temperatures in the summer afternoons. Customer comfort may be an overriding concern, and the use of fans or other energy saving measures may not be an option, or may not sufficiently reduce peak period consumption enough to make Time-of-Use rates a good choice.

What types of businesses qualify for Time of Use rates?

TEP currently offers TOU rates for large general service and industrial customers. TOU rates previously available for small general service customers were frozen by the Arizona Corporation Commission in October 2014. TEP plans to request new TOU rates for small general service customers in the future as part of its next request for updated rates.


Time-of-Use Time Periods
Summer: May – Sep | Weekdays
  midnight – 2 p.m. 2 p.m. – 8 p.m. 8 p.m. – midnight  
Weekdays except Memorial Day, Independence Day (July 4), and Labor Day. If Independence Day falls on Saturday, the Weekend schedule applies on the preceding Friday, July 3. If Independence Day falls on Sunday, the Weekend schedule applies on the following Monday, July 5.

All weekends are off-peak.
Time-of-Use Time Periods
Winter: Oct – Apr | Weekdays
midnight – 6 a.m. 6 a.m. – 10 a.m. 10 a.m. – 5 p.m. 5 p.m. – 9 p.m. 9 p.m. – midnight
Weekdays except Thanksgiving Day, Christmas Day, and New Year’s Day. If Christmas Day and New Year’s Day fall on Saturdays, the Weekend schedule applies on the preceding Fridays, December 24 and December 31. If Christmas Day and New Year’s Day fall on Sundays, the Weekend schedule applies on the following Mondays, December 26 and January 2.

All weekends are off-peak.