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Time-of-Use Electricity Rates Explained
As part of a statewide initiative, all California electric customers are being moved to a Time-of-Use (TOU) rate plan where electricity costs more during certain hours of the day. San José Clean Energy (SJCE) residential customers will be automatically transitioned to TOU rates in June 2021 with no action required from the customer.
Customers can try TOU rates risk-free for one year with automatic bill protection. Customers can also decline the transition and keep their current rate plan or choose another rate plan at any time. Most customers are expected to see savings with TOU rates without changing their usage. Moving to TOU rate plans helps ensure greater grid reliability, fight climate change, and support a cleaner and healthier energy future.
WHAT IS TIME-OF-USE (TOU)?
Most customers are currently on tiered rate plans where energy costs more as more is used. Instead, under TOU rates, energy costs more from 4:00 p.m. to 9:00 p.m. every day but is cheaper at all other times of the day.
- Rates will be lower during “off-peak” hours when overall energy demand is lower and more renewable energy is available (before 4:00 p.m. and after 9:00 p.m.).
- Electricity prices will be higher between 4:00 p.m. to 9:00 p.m., when the sun sets and less renewable energy is available to meet the “peak” in evening energy demand.
CUSTOMERS ARE EXPECTED TO SAVE MONEY
Most SJCE customers are expected to save money on TOU rates without changing any habits. However, shifting energy use to off-peak hours could help customers see even more savings on their bill. Easy ways to shift energy use include:
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Turning off all but essential lighting.
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Pre-cooling your home outside of peak hours.
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Using timers to run appliances such as dishwashers, washing machines and ovens during off-peak hours.
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Charging electronics through the night.
To view a personalized rate comparison and the lowest cost option, visit www.pge.com/TOUchoice or call PG&E at 1-866-743-7945.
TRY IT RISK-FREE WITH BILL PROTECTION
Customers can try the TOU rate plan with automatic bill protection for the first 12 months. If the first year of service ends up being more expensive than a customer’s previous rate plan, SJCE and PG&E will credit the difference at the end of the 12-month period.
Visit www.sanjosecleanenergy.com/tou to learn more, review customer options, and register for an upcoming webinar.