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Time-of-Use (TOU)

Take control of electricity usage with a Time-of-Use
(TOU) monthly pricing plan.

Save money and help support a cleaner environment simply by shifting your electricity use away from peak times of the day.

Save money just by changing when you do things.

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 Time-of-Use 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 Time-of-Use pricing plan is free, including the installation of a new electric meter. With Time-of-Use, the time of day will determine how much you pay for each kilowatt-hour (kWh), so the new meter will track actual time of use. When calculating the bill, TEP will apply the appropriate rate to the kWh used in each different 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 everybody money and even helps protect the environment.

Signing up is fast and free »

Have there been any changes for commercial customers on Time-of-Use rates?

Yes. The ACC approved changes to all of TEP’s Time-of-Use programs. Overall, Time-of-Use plans have been simplified. Among the changes:

  • Mid-priced “shoulder” hours and tiered pricing have been eliminated.
  • The higher-priced summer period has been shortened from six months to five.
  • Summer peak periods are from 2-8 p.m. Winter peak periods are from 6-10 a.m. and 5-9 p.m.
  • For Small Commercial Time-of-Use GS-76 customers, the customer charge has increased to $17.50 per month.
  • For Large General Time-of-Use GS-85 customers, , the customer charge has increased to $950 per month.
  • For Large Light and Power Time-of-Use LLP-90 customers, the customer charge has increased to $950 per month.

Customers on some Time-of-Use rates and other rates will be automatically enrolled in new rate plans. A letter with additional details will be mailed to Time-of-Use customers.

Are Time-of-Use rates right for my business?

It may depend on whether air conditioning accounts for the bulk of your electricity usage, and whether you can realistically limit its use.

Some of the many factors that may affect your decision regarding Time-of-Use rates are:

  • Is your primary use of electricity for production or manufacturing activities that run during multiple shifts, including early morning or night-time?
  • Does your business operate refrigeration equipment (food storage, for example) that accounts for 20 percent or more of your electricity usage? Such equipment operates off-and-on over an entire 24 hour period.
  • Does your business rely on evaporative cooling or fans for summer cooling?
  • Do you use electric space heating? And could you reduce usage during peak winter morning periods of 6:00 AM to 10:00 AM and peak winter evening periods of 5:00 PM to 9:00 PM?
  • Do you use an Energy Management System (EMS)?
  • Is your business a winter-only or night-time-only operation?

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 dont 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.

Time-of-Use
Delivery + Base Power Supply Charges*
  Summer
May–Sep
Winter
Oct–Apr
On-peak kWh 14.94¢/kWh 11.39¢/kWh
Off-peak kWh 11.12¢/kWh 9.16¢/kWh
Time-of-Use Time Periods
Summer: May – Sep | Weekdays
 
Off-peak
On-peak
Off-peak
 
  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
Off-peak
On-peak
Off-peak
On-peak
Off-peak
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.

*Excludes customer charge, green energy charges and the Purchase Power and Fuel Adjustment charge or credit.