ANNOUNCING A NEW RESIDENTIAL RATE . . .
for members who can shift home energy usage to off-peak hours. (12-month opt-in required.)
Are you looking for ways to lower your electric bill?
If you're able to shift energy use to off-peak hours, in the early morning and late evening hours, the residential time-of-use rate could be for you!
But it’s not for everyone. Electricity used during peak hours costs more than the standard residential rate, and a 12-month opt-in is required.
DEMCO's residential Time-of-Use (TOU) rate is designed to help you save on electricity by aligning your energy consumption with periods of lower demand. Using power during time-of-use off-peak hours, when rates are lower, can reduce your overall electric bill. Making small changes to when you use electricity every day can help you save money.
Before opting into TOU rates, members should understand their daily energy usage patterns and whether they can consistently use power outside of TOU on-peak hours. Members who opt in to TOU, but continue to use most of their electricity during TOU peak times, will pay a higher rate than the standard residential rate. It is important to assess your willingness and ability to use electricity during the specified TOU off-peak and super-off-peak times to realize savings.
Here’s a closer look at how TOU rates work and how you can benefit.
TOU Summer and Winter Seasons
Residential TOU rates are based on two designated seasons: Summer & Winter, with six months identified in each.
By understanding and using electricity during TOU off-peak and super-off-peak times, you can reduce your energy costs. To enroll in TOU, please click the banner link or call 844-MyDEMCO.
TOU Summer Months – The six (6) monthly billing periods of May through October.
| TOU Summer Off-Peak | 5 am - 1 pm, and 8 pm - 11 pm | $0.03479 per kWh |
| TOU Summer Super Off-Peak | 11 pm – 5 am | $0.00500 per kWh |
| TOU Summer On-Peak | 1 pm – 8 pm | $0.06958 per kWh |
| Standard Residential Rate <=1,000 kWh | 24 hours/day | $0.03985 per kWh |
| Standard Residential Rate >1,000 kWh | 24 hours/day | $0.04635 per kWh |
TOU Winter Months – The six (6) monthly billing periods of November through April.
| TOU Winter Off-Peak | 5 am - 6 am, 10 am - 6 pm, and 9 pm -11 pm | $0.03479 per kWh |
| TOU Winter Super Off-Peak | 11 pm – 5 am | $0.00500 per kWh |
| TOU Winter On-Peak | 6 am – 10 am, and 6 pm – 9 pm | $0.06958 per kWh |
| Standard Residential Rate <=1,000 kWh | 24 hours/day | $0.03985 per kWh |
| Standard Residential Rate >1,000 kWh | 24 hours/day | $0.04635 per kWh |
Understanding Residential Time Of Use On-Peak and Off-Peak Periods
TOU On-Peak Hours
TOU on-peak hours are the times when electricity demand and costs are highest. The TOU residential rate is best for households that can consistently use electricity during off-peak and super-off-peak times.
NOTE: Using electricity during TOU on-peak hours costs more than the standard residential rate. If you use electricity during TOU on-peak times, you will pay more than the standard residential rate.
TOU Off-Peak & Super Off-Peak Hours
Time-of-use off-peak and super-off-peak hours offer the best savings opportunity. During these time periods, TOU rates are lowest. You must opt in to the TOU rate schedule and use electricity during the designated TOU off-peak and super-off-peak times to enjoy TOU rates.
Time-of-Use (TOU) rates are designed to help you save on electricity by aligning your energy consumption with periods of lower demand. By using power during off-peak hours when rates are lower, you can reduce your overall electric bill. Making small changes to your everyday activities can help you save money.
Time-of-Use (TOU) rates are an optional rate schedule for members who can shift electricity use to certain times of day— such as laundry, dishwashers, or electric vehicle charging — to off-peak times.
Before choosing TOU, members should understand their daily energy habits and whether they can consistently use power outside of on-peak hours.
TOU rates can benefit members who can shift most of their electricity use to off-peak times.
TOU may be a good fit if you:
- Can run major appliances outside on-peak hours
- Charge electric vehicles overnight
- Use less electricity during peak demand times
TOU may not be a good fit if you:
- Use most electricity during on-peak hours
- Cannot shift usage due to work or family schedules
The key to saving money is lowering your usage during on-peak time. Here are a few ways to do that.
- Shift usage of major appliances – Run the washing machine, dryer, and dishwasher during off-peak and super off-peak hours, when rates are lowest.
- Cool or heat strategically – Pre-cool or pre-heat your home before on-peak pricing begins. A well-insulated home and proper use of ceiling fans may allow you to turn off the air conditioner or heat, and remain comfortable until the peak passes.
- Use smart plugs and timers – Automate appliances to run when electricity is cheapest.
- Charge EVs smartly – Schedule your EV charger during off-peak or super off-peak hours, when rates are lowest.
One of the key things to know under TOU billing is the worst time to use electricity.
- This is almost always in the morning and early evening hours, when most people are either getting ready for the work day, or coming home afterward - that's when system demand spikes.
- Running laundry or blasting the AC during these hours can double your costs compared to off-peak times.
Knowing when not to use energy can be just as important as knowing how much to use.
A common question homeowners ask is: Are time-of-use rates worth it? The answer depends on your habits.
- Worth it if: You can shift energy use to cheaper hours (like running appliances at night or charging an EV off-peak).
- Not worth it if: Your lifestyle makes it hard to avoid peak hours, or you don’t want to worry about timing.
That’s why TOU works best when paired with technology like smart thermostats, programmable appliances, or even solar-plus-battery systems.
