|
|
| |
| Off-Peak Power Use |
| by Kim Kinrade |
| |
| Electricity use, much like water use, follows patterns in human nature very closely. Since the majority of people work, go to school or otherwise 'live life' between the hours of 7:00am and midnight this is the time in which the most power is consumed. After midnight, power use drops off for 7-8 hours and the grid slows to a trickle. |
| Because of this phenomenon, most power companies promote a time-of-use program (TOU) of some sort. In other words, the power rate is very generous to users during this time. |
| Why would a corporation offer such discounts? The main reason is that power cannot be stored. Before leaving the generating plant electricity is elevated to a high voltage so it can be transported great distances to the substations and, finally, the end-user. It takes an enormous amount of power to create this flow and, like a river, is difficult – and expensive - to randomly shut off or turn on. |
| In the dead of winter, when the electric heaters and lights tax the grid, and in the summer when air-conditioners put a strain on the system, the power company has to use heavy resources to generate enough energy for these peak periods. When the demand peters out for those few hours a day and weekends, the excess capacity burns into the company’s cash reserves. To even out these spikes and dips it gives homeowners discounts with a TOU program. |
 |
| When you dig deeper into this reasoning you’ll see that it is more economical for a power company to implement a TOU (Time of Use) program than it is to spend the money and energy it takes to continue simply supplying peak periods. By continuing to promote TOU programs an supply corporation contributes toward a goal of actually altering the energy use cycle. |
| In most cases people pay a flat rate for their power. So, if the flat rate is about 15 cents per kilowatt-hour and you use 1,000 kilowatt-hours in a month, you would pay $150.00 for the month plus taxes. |
| The time-of-use program requires a special power meter to be put on your home so that the power company is able to differentiate between the regular use and TOU savings and bill appropriately. There are two main TOU periods: "on-peak" and "off-peak." Some companies even offer special summer rates, say between April and September, where the on-peak hours are 9 a.m. to 8 p.m. on weekdays, giving an extra 5 hours. During the winter, the on-peak hours can be slightly different: 7 a.m. to 11 pm on weekdays. Nights, weekends and vacations are considered off-peak. |
The following is an example of how the rates work in one company:
- $10 per month to be a part of the program
- 15 cents per kilowatt-hour for on-peak power
- 7 cents per kilowatt-hour for off-peak power
|
| It does not take a mathematician to figure out that these figures provide a great incentive to consider an off-peak program to compliment the usual on-peak use. Just moving hot-water-dependent chores like laundry, showers and dish washing to off-peak hours (nights and weekends) can provide substantial savings. |
| So, if you use 1,000 kilowatt-hours in one month, and 350 are on-peak and 650 are off-peak, then the total bill is $107.50. Even with the $10 surcharge the power savings can add up. |
|
| |
| Compare FREE Estimates From Electrical Contractors NOW! |
|
|
|
