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Time of Use

How Time of Use (TOU) Rates Work

A Glance At The Clock Can Help You Control Your Energy Costs

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.

Here’s a closer look at how TOU rates work and how you can benefit.

Understanding On-Peak and Off-Peak Periods

1. Off-Peak Hours:

Off-peak hours offer the lowest electricity rates because demand on the power grid is reduced. For KV REMC members, these hours are:

  • 4 a.m. – 4 p.m. CT
  • 7 p.m. – 10 p.m. CT

During these times, the grid experiences less strain, allowing you to enjoy lower rates.

2. On-Peak Hours:

On-peak hours are when electricity demand is at its highest, usually in the late afternoon and early evening. During these times, the cost of electricity is higher to manage demand and encourage conservation. For KV REMC members, on-peak hours are:

  • 4 p.m. – 7 p.m. CT
    Monday-Friday

3. Super Off-Peak Hours:

Super off-peak hours present the best opportunity for savings, as electricity demand is at its lowest, typically late at night or very early in the morning. This period offers the lowest rates, making it ideal for heavy energy use. For KV REMC members, super off-peak hours are:

  • 10 p.m. – 4 a.m. CT

By understanding and utilizing these time periods, you can significantly lower your energy costs and contribute to a more balanced power grid.

 

Use the calculator below to see how simple adjustments to when you use electricity could result in savings on your bill.

Time of Use Bill Calculator

These On-Peak hour rates are for Monday-Friday ONLY.

Saturday and Sunday are OFF-PEAK and SUPER OFF-PEAK

In the boxes below, enter your monthly energy usage found on your electric bill. Adjust your kWh in the calculator to see how small changes in when you use electricity can result in savings.

Current Rate

Time of Use Rates:

 

Power Cost Adjustment:  A Power Cost Adjustment (PCA) reflects changes in the cooperative’s costs for wholesale power purchased from Wabash Valley Power Alliance. Variations in the PCA are primarily due to fluctuations in the cost of generating electricity, which is influenced by changes in fuel prices.

Facilities Charge: The facilities charge on your bill is a fixed monthly fee that covers the operational expenses associated with delivering power to your home or business. This includes essential costs such as line and equipment maintenance, metering, billing, and other cooperative expenses. This charge remains consistent each month, regardless of your energy usage.

 

Time of Use Frequently Asked Questions

What is the time of use rate?

Time of use rate is based on the fact that wholesale electricity prices are constantly changing depending on when you use the energy. Energy costs are higher during peak times of the day, when members are using more energy. Energy costs less when demand is lower, such as late evening or early mornings. Simply put, with time of use rate structure timing is everything, members could pay more when energy’s expensive and less when its cheaper.

Why the change to time of use now?

KV REMC has traditionally offered a flat rate for energy, charging the same per kWh regardless of the time of day. However, this approach doesn’t align with how the co-op is billed for energy. Just like in any market, increased demand leads to higher costs. With the standard rate, while members paid a consistent per kWh rate, the co-op faced fluctuating charges based on demand.

Under the new rate structure, your energy costs will better reflect these changes. When you use energy during peak times, the rate will be higher to match the increased charges we incur. When you use energy during off-peak or super off-peak hours, you’ll benefit from a lower per kWh rate.

What are the three usage periods?

Monday through Friday only

On-Peak: Monday through Friday from 4 p.m. to 7 p.m. CT
Off-Peak: 4 a.m. to 4 p.m. and 7 p.m. to 10 p.m. CT
Super Off-Peak: 10 p.m. to 4 a.m. CT.

Excluding Holidays: *The following general holidays shall be excluded from the on-peak periods: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. In the event any of these holidays occur on a Saturday, the holiday remains on that Saturday. In the event the holiday occurs on a Sunday, the following Monday shall be the holiday.

What happens on the weekend?

While there are three peaks on the weekdays, on weekends and holidays there is off-peak and super off-peak times. The difference in cost between these peaks is very small to all members more freedom on the weekends.

How can I save on the time of use rate?

The key to saving money is lowering your usage during on-peak time. Here are a few ways to do that.

  1. 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.
  2. 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 could allow you to turn off the air conditioner or heat and stay comfortable until the peak decreases.
  3. Use features available on an electric car to allow for charging during off-peak or super-off peak hours.

Time of Use Videos

Introducing the KV REMC Time of Use Rate

Tips and Tricks To Save Using The Time of Use Rate

Appliances


Dishwasher

Use the Delay Feature

Start or program your dishwasher to run and finish before 4 p.m. or start after 7:00 p.m.  If possible, choose an air-dry cycle that uses unheated air to dry your dishes. Operating costs on-peak could be $0.67 per hour compared to $0.07 or lower. 


Clothes Washer and Dryer

Run During Off-Peak

Run or schedule your electric washing machine or clothes dryer outside the peak hours of 4 p.m. to 7 p.m. CT.  Wash full loads of laundry whenever possible and switch your temperature setting from hot to warm to cut energy use in half for a single load. Using the cold cycle can reduce energy use even more. About 90% of the energy consumed for washing clothes is used to heat the water.


Electric Vehicle Charger

Schedule Your Charging

To lower your monthly electric bill, consider programming your electric vehicle (EV) charger to operate during off-peak or super off-peak hours, rather than during peak hours from 4-7 p.m. CT. Rates are significantly lower during these times. Most EVs and chargers allow you to schedule charging through an app or the vehicle's interface. Since Level 2 EV chargers can use 10 kWh or more per hour, aligning your charging times with these lower rate periods can help you save on energy costs while ensuring your vehicle is fully charged when needed.


Water Heater

Smart Water Heater Usage

Electric water heaters can be one of the largest electrical loads in a house.  To reduce your monthly electric bill, consider running the dishwasher, washing clothes and taking your daily shower before 4 p.m. or after 7 p.m.