Time-of-Use Electricity Rates Explained (2026): Peak Hours, Off-Peak, and Bill Math
California mandated TOU as default for new residential customers in 2024. Peak hours (4pm-9pm) cost 2-3x more than off-peak. Here is what you need to know.
24-Hour Rate Guide (PG&E E-TOU-C Default Plan)
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Off-peak 12am-3pm: ~22c/kWh Partial peak: ~42c Peak 4-9pm: ~58c/kWh
TOU vs Flat Rate Calculator
Flat Rate Bill
$169
17.65c all day
TOU Bill
$289
Costs $120 more
Calculation: 25% peak usage x 225 kWh x 58c + 675 kWh x 22c + $10 fixed = $289.00
TOU Rate Reference by Major Utility
| Utility | Plan | Peak Hours | Peak Rate | Off-Peak |
|---|---|---|---|---|
| PG&E (California) | E-TOU-C | 4pm-9pm daily | 58c | 22c |
| SCE (Southern California Edison) | TOU-D-4 | 4pm-9pm daily | 52c | 20c |
| SDG&E (San Diego Gas and Electric) | TOU-DR1 | 4pm-9pm daily | 65c | 24c |
| ConEd (New York) | SC-1 TOU optional | 8am-12am weekdays (summer) | 38c | 18c |
| Eversource (Massachusetts) | R-TOU | 5pm-8pm weekdays | 41c | 26c |
Source: Utility tariff schedules. Last verified April 2026. Rates may change; confirm on your utility's tariff page.
Load-Shifting Strategies to Save on TOU Rates
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EV Charging
Schedule your EV to charge after 9pm (or after 11pm for super-off-peak rates). A full 60kWh charge at off-peak 22c vs peak 58c saves $21.60 per charge.
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Washer and Dryer
Run laundry loads before 3pm (midday off-peak) or after 9pm. A dryer uses 4-6 kWh per load. At PG&E rates, running at peak vs off-peak costs $2.16-$2.52 more per load.
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Dishwasher
Set dishwasher to delay-start for 9pm or later. 1-2 kWh per cycle. Small savings per load but adds up: $0.36-$0.72 saved per load on CA TOU plans.
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Pre-cooling
On hot days, cool your home before 4pm using off-peak power. A central AC running 3 hours at 3.5 kW = 10.5 kWh. Pre-cool at 22c vs running at peak 58c saves $3.78 per session.
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Smart Thermostat
ecobee and Nest thermostats integrate with TOU rates automatically - pre-cooling before peak and raising the setpoint during peak. Can save $15-40/month in summer.
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Home Battery
Batteries (Tesla Powerwall, Enphase) charge during off-peak and discharge during peak, effectively buying low and selling high on your home grid. Payback improves at high TOU spreads.
TOU Rate Frequently Asked Questions
What is a time-of-use electricity rate?+
A time-of-use (TOU) rate charges different prices for electricity depending on when you use it. Peak hours (typically 4pm-9pm when demand is highest) cost more - up to 58c/kWh on PG&E's E-TOU-C plan. Off-peak hours (overnight and midday when solar generation is abundant) are cheaper at 20-22c/kWh. TOU became the mandatory default for new California residential customers in 2024.
What are PG&E's peak hours?+
PG&E's E-TOU-C plan (the default for new CA residential customers since 2024) charges peak rates from 4pm to 9pm every day. Partial-peak applies from 3pm-4pm and 9pm to midnight. Off-peak runs from midnight to 3pm. Peak rates in 2026 run approximately $0.50-$0.65/kWh; off-peak is approximately $0.20-$0.25/kWh. The 4pm-9pm peak reflects grid stress when solar generation drops (after the solar mid-day peak) and household demand surges (cooking, cooling, EV charging, entertainment).
Does TOU save money?+
TOU saves money if you can shift significant usage to off-peak hours. EV owners who charge overnight (11pm-7am) typically save $20-50/month. Households that run appliances in the morning or midday also save. However, if 60% or more of your usage falls in peak hours (4pm-9pm) and you cannot shift it, TOU may cost you more than a flat rate. The TOU calculator above shows your specific scenario.
When is electricity cheapest on TOU?+
On California TOU plans (PG&E, SCE, SDG&E), electricity is cheapest from midnight to 3pm - the off-peak window when overnight load is low and midday solar is abundant. On PG&E's EV2-A plan specifically, super-off-peak rates apply from 11pm to 7am, targeting EV overnight charging. On ConEd (NY) and Eversource (MA) optional TOU plans, off-peak is similarly overnight and weekend.
Can I opt out of TOU in California?+
Yes - California residential customers who are automatically enrolled in TOU by their utility (PG&E, SCE, SDG&E) can opt out by contacting their utility. You can request to remain on a tiered (non-TOU) rate plan. However, new residential customers are defaulted to TOU after their first 12 months, and utilities periodically reduce the non-TOU options available.