Under Time-of-Use (TOU) pricing, customers pay a different rate for electricity at different times of the day and on different days of the week. TOU pricing has three periods:
- On-peak (when energy demand and cost is high)
- Mid-peak (when energy demand and cost is moderate)
- Off-peak (when energy demand and cost is low)
Under Tiered rates, customers pay one rate for the electricity they consume up to a set kilowatt-hour (kWh) threshold each month. Once customers exceed this monthly threshold, they are billed at a higher rate per kWh for all additional electricity consumed in that month.
The threshold changes with the seasons for residential customers and remain the same all year round for small business customers.
