With time-of-day rates, also known as TOD rates, the price per kilowatt-hour is dependent on the time of day it is purchased. This rate is intended to give members a financial advantage when they shift their power usage to low-demand or off-peak hours.
Nighttime hours, from 10 p.m. – 6 a.m. every day, are considered off-peak. During this time our residential members will purchase energy at 6.617 cents /kWh and on-peak is all other times and this rate is 14.426 cents/kWh this includes a distribution charge of 2.7101 cents/kWh. By shifting the time they are using power, members can easily save money on their monthly bills. This rate change began in June 2023.
The rates are different for each of the following rate classes:
- Residential Members (R-TOD)
- General Service Non-demand (GS-TOD)
- Kelleys Island Residential Members (R-TODKI)
- Kelleys Island General Service Non-demand (GS-TODKI)
Importance of TOD Rates
There are two reasons this new rate is important:
- Electricity costs more to produce during on-peak hours. Consequently, the cooperative pays more for electricity purchased during that time. The more we can get our members to shift their usage to off-peak times, the less the co-op pays, and the more savings we can pass on to our members.
- The TOD rate can save you money! How much you change – by shifting your usage to off-peak hours – will directly affect your electric bill.
How Will the Time-Of-Day Rate Affect You?
First, you need to determine what appliances and equipment in your house use the most electricity. In general, this would be electric vehicles and appliances that pump, heat, or cool. Some high-use items include plug-in hybrid and battery electric vehicles, electric water heaters, space heaters, air conditioners, electric clothes dryers, electric ranges, hot tubs/saunas, waterbeds, and pool pumps. Being on the TOD rate means you must decide which of these appliances can be used instead during off-peak hours.
Here are some suggestions on using TOD to your advantage:
- Your electric water heater can be shut off during on-peak hours by putting it on a timer. “Smart” water heaters can be programmed through an app.
- Wait until after 10 p.m. to use your dishwasher, clothes washer, or dryer. Use the “Delay” start button or app for Wi-Fi-enabled smart appliances.
- Charge your electric vehicle after 10 p.m. Most vehicles won’t need a full 8 hours to charge – configuring for a 6 a.m. departure is better than starting exactly at 10 p.m.
Imagine a typical 1500-watt space heater running 24 hours per day for 30 days. With a traditional flat kWh rate, this heater would cost about $130 to operate. With TOD pricing, it would cost the same $130. On average, our TOD rate isn’t higher or lower. Now, imagine the same heater that only operates eight hours per day. With a flat kWh rate, the monthly cost would be about $43 regardless of when the heater was operated. The cost would be $52 if operated completely on-peak; however, if the heater only operated at night between 10 p.m. to 6 a.m., the off-peak cost would be $24. TOD pricing provides a chance to save by shifting, instead of reducing, energy usage.
As always, your co-op is here to help! If you have any questions about this new rate and how it may affect you, please give us a call at 800-445-4840.