Large General Service (LGS) Time-of-Use
Choosing the right pricing plan is an important part of managing your energy usage. Our Large General Service (LGS) Time-of-Use pricing plan offers an opportunity to reduce your monthly bill by shifting the majority of your electricity usage away from time periods when customers typically use energy the most.
How does the LGS Time-of-Use pricing plan work?
Our LGS plans are designed for medium-sized commercial and industrial customers with measured demands of at least 300 kilowatts (kW) and below 5,000 kW.
Like our standard LGS plan, our LGS Time-of-Use (TOU) plan combines a monthly customer charge with a "demand" charge, which is based on the greatest of your highest usage within a 15-minute period during the current billing cycle, 75 percent of your highest demand charge in the preceding 11 months, or the greater of either a predetermined contract capacity or 200 kW.
What makes LGS TOU different is that it offers lower usage-based energy charges for most of the day, with higher charges for consumption during on-peak hours. These usage-based rates are higher in the summer (May – September) than they are the rest of the year.
Under this plan, you could maximize your savings by reducing use of your business' air conditioning, lighting, computers, copiers, printers and other equipment during higher-cost, on-peak hours: 2-8 p.m. during the summer and 6-10 a.m. and 5-9 p.m. during the winter (October-April).
With MGS Time-of-Use, timing is everything. The more you can shift usage to off-peak hours, the better off you’ll be. Your savings will vary based on your business' usage patterns.
What are the potential advantages of this plan?
The time-of-use pricing structure offers savings opportunities for businesses with flexibility to adjust when and how they use energy.
Our LGS pricing plans reward customers who can reduce their peak demand on the electric grid. Reducing the peak energy demand promotes more efficient use of our energy resources and can help limit future rate increases.
Customers who take service at primary voltage may be eligible for a billing demand discount of 20.6 cents per kW per month. The company may require a written contract with a minimum contract demand and a minimum term of contract.
What are the potential disadvantages of this plan?
If your business requires the use of a lot of power during on-peak hours, your energy costs could increase under our LGS Time-of-Use plan.
You may be required to pay for excess off-peak demand if it exceeds 150 percent of your on-peak demand and may be required to install additional equipment.
If demand meets or exceeds 5,000 kW twice in a rolling twelve-month period, you may be moved to the Large Power Service Time-of-Use rate.
Customers who leave this plan cannot return to the LGS Time-of-Use rate for at least 12 months.
¹ Includes Energy/Delivery and Power Supply charges but excludes the Purchased Power and Fuel Adjustment Clause charge.
² The maximum one-hour measured demand during the on-peak hours of a billing period. In the summer (May-September), the on-peak period is 2-8 p.m., Monthly billing demand is the greatest of:
- The greatest measured 15-minute interval demand read of the meter during all hours of the billing period
- 75 percent of the greatest demand used for billing purposes in the preceding 11 months
- The contract capacity or 200 kW, whichever is greater