Time-variant pricing by utilities means not all electricity costs the same. Traditional flat-rate pricing imposed the same rates no matter when electricity was consumed. Time-variant plans, however, link rates to predetermined times and usage.
Keying utility rates to specific times incentivizes consumers to adopt energy-efficiency measures to reduce electricity use during expensive, high-demand periods. However, the even better news about time-variant plans is, the cost of power actually drops significantly during specified time spans when demand declines. This fact enables consumers to adjust patterns of household electrical consumption where possible and take advantage of lower-cost rates.
For time-variant billing purposes, electricity consumption is classified in three categories:
- Peak. Daily span of greatest consumption, typically weekdays from late morning through early evening. Peak prices are the highest standard category.
- Off-Peak. Usually in effect after 8 p.m. on weekdays and all day and night on weekends, off-peak electricity is priced at lowest rates.
- Critical Peak. This very high temporary rate takes effect during special events such as a severe heat wave in summer or unusually frigid wintter weather.
Consumers can maximize the advantages of time-variant pricing by taking a few simple steps:
- Optimize home energy-efficiency. Seal cracks that leak cooling or heating, check insulation levels and schedule annual maintenancefor cooling and heating units by a qualified HVAC contractor.
- Familiarize yourself with the rate timing, then take appropriate action. For example, if peak hours start around 11 a.m., program your A/C thermostat to bump the household temperature up a few degrees at that time.
- Re-schedule high-consumption activities such as washing clothes, running the dishwasher or charging an electric vehicle, until off-peak hours begin, after 8 p.m. daily or all weekend.
- If critical peak pricing is declared, make special efforts to cut consumption. Open windows at night when outdoor temperatures permit, utilize efficient ceiling fans to circulate air, turn off unnecessary lighting, etc. If household power consumption remains below a specified limit, many utilities will exempt that customer from the extremely high critical peak prices.
Make the most of time-variant pricing with experienced advice and services from the HVAC professionals at Ace Hardware Home Services.
