Summary:
While many electric consumers know they can shop around for electric companies, few are aware of a better way to save on their electric bill -- the time of day plan. Where available, a time-of-day plan offers reduced rates for using electric in off-peak hours. This article gives a few tips on how to save money on such a plan.

Details or Sample:
When the Electric Choice program first allowed consumers to choose their electricity providers, the media made a big deal about the potential savings for consumers. I called around to several companies but found very little difference in rates. A short time later, I discovered another, less well known method of saving on electricity that doesn’t require the hassle of switching companies: the time-of-day plan.

Many electric companies, including mine (Met-Ed), offer lower rates for the electricity used in off-peak hours to customers who choose this plan. By signing up for a time-of-day plan (which requires a time-of-day meter), we have seen significant savings on our electric bill.

Even in a home heated and air conditioned with an electric heat pump, it is possible to keep off-peak electric usage around 65% simply by running the dishwasher, shower, washing machine, and dryer during the off-peak hours (9:00 a.m. to 9:00 p.m. weekdays, plus all day Saturday and Sunday, during daylight savings time and 8:00 a.m. to 8:00 p.m. plus weekends during the winter months). When no one is home during the day, it is even easier to minimize electric use during the on-peak hours.

On one of our typical monthly electric bills, which showed a use of 1,187 Kilowatt hours with 63.1% off peak, I calculated a savings of nearly $5.00 over what we would have paid on the company’s flat rate plan. The savings are greater, of course, when we are able to increase our off-peak usage and decrease our on-peak usage. On the flip side, we could also wind up paying more for electricity if our on-peak usage goes too high; the rates for the peak times are higher than the company’s flat rates. Met-Ed also has rules in place that prevent customers from switching back and forth between the flat rate and time-of-day rate to get the most beneficial plan each month.

When we first moved into our house, which already had a time-of-day meter installed, the customer service representative described the time-of-day rate plan as a commitment to a change of lifestyle, having to schedule chores by the clock. She suggested cooking in off-peak hours, but it’s difficult to ask an entire family to wait for dinner until after 8:00 or 9:00 p.m. Even with eating early, it is not particularly difficult to keep the off-peak percentages high enough that they are beneficial.

One way to keep rates low on the time-of-day plan are to load and unload the dishwasher whenever possible but wait to turn it on until right before bed. You can also wash clothes in the off hours (even washing before bed and drying first thing in the morning) and save the bulk of the laundry for weekends. Some might find scheduling their chores to be a hassle, but those who don’t mind it can easily stretch their household budgets by switching their electric plan to the time-of-day rate.

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Written by: Shannon Christman
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Words: 484