Here’s what time-of-use rates mean for your business
Instead of a single flat rate for energy use, time-of-use rates are higher when electric demand is higher. This means when you use energy is just as important as how much you use.
Winter has two rate periods: off-peak and partial-peak. Summer has three: off-peak, partial-peak and peak. During peak periods, defined as weekdays from noon to 6 p.m., May through October, your business’ electric rates will be higher. In return, time-of-use rates at all other times will be lower than the peak rate.
All business customers will transition to time-of-use rates as required by the California Public Utilities Commission.
To learn more about peak periods and how time-of-use works, see the Time-of-Use Frequently Asked Questions section.
Some time-of-use rates include Demand Charges. If your time-of-use electric bill shows a monthly Demand Charge, you can find out more here.
Some time-of-use rates, like A10 time-of-use, include a Demand Charge. This Demand Charge is a charge based on the maximum load (expressed in kilowatts, or kW) placed on PG&E’s system by your equipment at any interval during the billing period. Your monthly Demand Charge will vary depending on the equipment you use from month to month. One way to manage your monthly Demand Charge is to stagger times at which you switch equipment on, rather than doing it all at once; this helps minimize spikes in demand.
The Demand Detail reflects the maximum amount of load you needed over the course of a billing period, and can vary depending on the equipment you use from month to month. For example, charging an electric vehicle at the same time as running a pool pump will create a much higher demand than if the two were run at separate times. Depending on your business type, it may be possible to lower your Demand Detail charge.