A Time-of-Day rate is simply based on the time of day in which you consume electricity. Consumers pay a lower rate per kWh during periods of low demand and a higher rate per kWh during periods of peak demand.
The cost to provide electricity varies throughout the day and is generally highest between 12 Noon and 8PM on weekdays. In Connecticut, this is the peak demand period. The other weekday hours, 8PM to Noon and all hours on weekends are considered off-peak hours. In a 168 hour week, the peak covers 40 hours or 23% of the time while the off-peak totals 128 hours or 77% of the time.
As a result of reducing the number of peak hours, lower off-peak prices are available 77% of the time, providing customers a greater opportunity to take advantage of real-time or Variable Peak Pricing (VPP) programs to lower their cost. (For UI business customers, peak hours are 10AM until 6PM on weekdays).
Learn About CL&P’s VPP Program HERE and UI’s VPP Program HERE.
Optional time-of-day rates have been available for many years. However, very few customers have chosen time-of-day rates voluntarily. CL&P serves over 1.1 million residential customers, and fewer than 200 are served under its residential time-of-day rate. But in 2006, the Department of Public Utility Control directed CL&P and UI to phase-in mandatory time-of-day rates for both residential and commercial customers.
Time-of-Day rates were designed to reduce Connecticut’s ever growing peak demand for electricity while providing financial incentive to reduce consumption and lower electric bills. If time-of-day rates are optional, many customers would not select them voluntarily, choosing instead to remain on the “flat” rates that have been charged in the past. While there is no guarantee that customers will change their usage patterns, those that do can lower their bills. Conversely, if customers increase their peak consumption their costs will increase. The mandatory phase-in schedule for Time-of-Day rates is outlined as follows:
United Illuminating
Residential customers (Rate RT)
- Customers using >4,000 kWhs in a billing period in 2007 were placed on Rate RT beginning Jan 1, 2008
- Customers using >3,000 kWhs in a billing period during 2008 were placed on Rate RT beginning Jan 1, 2009
- Customers using >2,000 kWhs in a billing period during 2009 were placed on Rate RT beginning Jan 1, 2010
UI and the DPUC will determine whether to apply mandatory Time-of-Day rates to customers with consumption below 2,000 kWhs in a billing period after 2011. The average UI residential customer uses about 700 kWhs per month.
Business customers (C&I Rate GST)
- Effective June 1, 2008, customers with demands >300 kW took service under Rate GST
- Effective June 1, 2009, customers with demands >200 kW took service under Rate GST
- Effective June 1, 2010, customers with demands >100 kW will take service under Rate GST
DPUC Decision – United Illuminating Mandatory Time-of-Day Rates
Information about UI’s Time-of-Day Rates
Connecticut Light & Power
Residential Customers
Mandatory time-of-day rates for CL&P residential customers was to begin in 2009. However, this requirement has been put on hold until the DPUC can determine the type of electric meters that should be used in the future. For more information, follow to the links provided below:
DPUC Decision – CL&P Mandatory Time-of-DayRates
DPUC Decision delays mandatory Time-of-Day Rates for residential customers
DPUC Decision – Net Metering, Time-of-Day for Generation and Delivery Rates and Cost Allocations
Business Customers
CL&P’s business customers currently use meters that track time-of-day consumption. The phase-in of mandatory time-of-day rates for CL&P’s small business customers is as follows:
- Effective January 1, 2009, customers with demands of 300 kW or more started taking service under CL&P’s business Time-of-Day rate, Rate 27 or 37, and cannot return to Rate 30 or 35;
- Effective January 1, 2010, customers with demands of 200 kW or more started taking service under Rate 27 or 37, and cannot return to Rate 30 or 35;
- Effective January 1, 2011, customers with demands of 100 kW or more must take service under Rate 27 or 37, and cannot return to Rate 30 or 35.
Once a customer is placed on a time-of-day rate, they must remain on that rate. For business customers, the phase-in is based on their monthly peak demand for electricity.
Time-of-Day rates provide a financial incentive to use less electricity during peak hours. Here are some additional tips that customers should consider:
- Run high use devices like pool pumps, clothes washers and dryers, water heater and dehumidifiers after 8PM;
- Purchase efficient equipment for the use of electricity that can’t be shifted to off-peak;
- Install solar systems to produce electricity during peak hours or solar thermal equipment to offset peak consumption for heating water and other needs;
- Learn about the benefits of net metering;
- Conserve by simply becoming more aware of electricity use between 12 Noon and 8PM.
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