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Time-of-use electricity rates are coming, and they're going to change our lives. Depending on where you live, this could happen in a few years, a few months, or maybe it already has happened.
But what exactly are "time-of-use electricity rates"?
The principle is simple: Demand for electricity varies during the day. It is lowest in the middle of the night when most people are sleeping and commercial/industrial buildings are not in operation, and it is highest from about noon to 9 PM when everybody is working, cooking, watching TV, running the dishwasher, etc. Very hot and very cold days also make a big difference (more power is required to run air conditioners or heating systems).
What time-of-use rates do is reflect that reality into electricity prices to create incentives that encourage people to use less electricity when demand is highest and more of it when it is lowest. The total amount of electricity used could be the same, but the peaks will be lower and the valleys won't be as deep. This is in opposition to flat rates (same price during the whole day), which don't make it any more expensive to use power during peak time, leading to huge peaks.
How does that help me and the environment?
The reason why this is green is because our power grid has to be designed to meet peak demand. It's kinda like having a car with a huge engine because once in a while you need to drive really fast. The rest of the time a smaller engine could, but you need the extra power in reserve.
Charging higher electricity prices during peak demand has the effect of shifting demand to the least expensive times (which can 50%+ cheaper). This in turn means that fewer new power plants (often powered by natural gas or coal -- fossil fuels that produce greenhouse gases and air pollution) need to be built to meet the peak. In short, it is a good way to better use what you already have.
Make a Plan, Turn it Into a Habit, Forget About It
So fewer new power plants is a good thing for the environment, but time-of-use rates can also be good for your wallet if you take advantage of it. Having variable rates is of no value if you kind of forget about it and don't change your behavior.
The best way to do this without having to think about electricity rates daily forever is to make a plan and stick to it until it becomes a habit and you don't have to expand mental effort anymore.
For example, when your utility introduces variable pricing, you should look at the rates and then make a list of energy-intensive activities that you can move around. Could you maybe use the timer on the dishwasher so that it starts at night instead of during the evening? Could you take a shower earlier in the day instead of at night (if your water heater is electric)? Could you put the computers to sleep when not needed, especially during peak time? Maybe all that baking could be done during the weekend (lower rates), and some unnecessary lights could be turned off during the evenings. Programmable thermostats could be set lower (or higher in the case of A/C) during peak time. Just put on a sweater, or dress more lightly.
Identify things you could move off peak, create a new schedule with the new times and follow it for a bit until it becomes a habit. If you stick to it, you'll be both reducing your power bill and helping the environment by lowering peak electricity demand.
