Variable Peak Pricing (VPP) is a form of Time-Of-Day (TOD) pricing that allows customers to purchase their generation supply at prices set on a daily basis.
Standard on-peak and off-peak time-of-day rates are in effect throughout the month. Under the VPP program, the on-peak price for each weekday becomes available the previous day (typically late afternoon) and you get billed for actual consumption during the billing cycle at these prices.
On July 1, 2010 United Illuminating will begin offering Variable Peak Pricing (VPP), along with Connecticut Light & Power. VPP is now available to all customers who receive service on a time-of-use rate. What this means, is that if you are purchasing your electricity from UI or CL&P, you will now have the opportunity to purchase it at a rate that is priced on a daily basis, during peak hours.
You must have the appropriate metering to choose the VPP rider, so a new meter might need to be installed. If non-standard metering is required, you may be responsible for the incremental costs of such metering.
Why Variable Peak Pricing?
VPP pricing may provide you the opportunity to save money by shifting more of your electricity usage to off-peak hours. Reduced load on the electric grid during peak hours ultimately saves money for everyone because it can delay the need for more electricity to be generated to meet peak demand.
What is required to receive VPP service?
VPP is available to all customers who purchase their generation supply from UI or CL&P. To be eligible, you must receive service under a time-of-day rate and have a meter capable of measuring and recording on-peak usage on a daily basis. UI or CL&P can install the appropriate metering for you.
What are the benefits?
VPP may be of benefit to customers who can shift their load between on and off-peak periods. If you receive service under the VPP program, the daily on-peak pricing will allow you to determine the amount of generation supply you wish to purchase for the following day at those prices. Because prices will fluctuate, you should assess whether you should take advantage of this opportunity and ultimately benefit.
Can a Time-Of-Day Rate save me money?
A time-of-day rate could potentially save you money. The amount of savings depends upon the amount of electricity that you use during off-peak hours. Depending upon how and when you use electricity, you could see your electric bill increase or decrease.
A TOD rate is designed to reward consumers who manage their household electric consumption effectively during off-peak and on-peak hours.
What are the on-peak and off-peak times?
Be sure to check with your host utility, but typically off-peak hours are between 8 PM and 12 noon, Monday – Friday and all weekend hours.
Where can I learn more?
- Click HERE to learn more Time-Of-Day rates
If you are purchasing your generation supply from a competitive electricity provider, be sure to inquire with them about Variable Peak Pricing and how this type of rate plan can be integrated into your service contract. Most competitive energy providers can offer a substantially lower price per kWh on your electric bill compared to UI’s or CL&P’s rates.
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