What is Residential Time of Use?
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 off-peak hours, when rates are lower, can reduce your overall electric bill. Making small changes to your everyday activities can help you save money.
Before opting into TOU rates, members should understand their daily energy habits and whether they can consistently use power outside of on-peak hours. Members who opt in to TOU, but continue to use most of their electricity during peak times will pay a higher rate than the usual residential rate. It is important to assess your willingness and ability to actually use electricity during the specified TOU to enjoy savings.
Here’s a closer look at how TOU rates work and how you can benefit.
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 these time periods, you can reduce your energy costs. To enroll in TOU, please click the banner link or call 844-MyDEMCO.
Summer Months - The six (6) monthly billing periods of May through October.
| Summer Off-Peak | 5 am - 1 pm, and 8 pm - 11 pm | $0.03479 per kWh |
| Summer Super Off-Peak | 11 pm – 5 am | $0.00500 per kWh |
| Summer On-Peak | 1 pm – 8 pm | $0.06958 per kWh |
Winter Months – The six (6) monthly billing periods of November through April.
| Winter Off-Peak | 5 am - 6 am, 10 am - 6 pm, and 9 pm -11 pm | $0.03479 per kWh |
| Winter Super Off-Peak | 11 pm – 5 am | $0.00500 per kWh |
| Winter On-Peak | 6 am – 10 am, and 6 pm – 9 pm | $0.06958 per kWh |
Understanding Residential Time Of Use On-Peak and Off-Peak Periods
On-Peak Hours
On-Peak hours are when electricity demand is at its highest. During these periods, electricity costs are higher.
Super Off-Peak Hours
Super off-peak hours offer the best savings opportunity. During these time periods, rates are lowest. You must opt in to the TOU rate schedule and use electricity during the designated 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.
- Using delay start or timers on your appliances for them to start at off-peak times or run them early in the morning during the super off-peak is a great start.
- Installing a smart thermostat and pre-cool or pre-heat your home during off-peak times to reduce your HVAC load during peak times. A well-insulated home may allow you to turn off the air conditioner or heat and remain comfortable until the peak passes.
- Use features available on an electric car to allow for charging during off-peak or super-off-peak hours.
- Schedule your EV charger during off-peak or super off-peak hours.
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.
