Time-of-Use Rates
What is the Time-of-Use (TOU) electric rate and how is it different from my current billing rate?
A Time-of-Use rate is a type of utility billing arrangement in which the amount you pay for electricity changes based on the time of day you use electricity. With the current residential electric billing (E-1) rate, you pay the same amount for electricity regardless of the time of day you use it. Additionally, your billing rate increases after you use a certain amount of electricity each month, which is called tiered pricing.
With the TOU rate (E-1-TOU), your electric rate changes based on when you use electricity:
- Highest rates: 4 p.m. - 9 p.m. every day (peak hours)
- Lowest rates: 9 a.m. - 3 p.m. every day (super off-peak hours)
- Mid-range rates: 3 p.m. - 4 p.m. and 9 p.m. – 9 a.m. every day (off-peak hours)
TOU rates work best for customers who:
- Use more than 800 kilowatt hours (kWh) per month
- Have an electric vehicle (EV) or plan to get one
- Can easily shift major electricity usage from Peak period to Off-Peak and Super Off-Peak periods
- Want to support clean energy and grid decarbonization
Customers may be better served with their current E-1 rate if they:
- Use less than 600 kWh per month
- Cannot adjust the times when electricity must be used
- Prefer simple, predictable pricing
If you are interested in switching to the TOU rate schedule, please fill out this enrollment form.
Enroll in the Time-of-Use Rate
Tips for electricity use under a TOU Rate to save money
- Charge your electric vehicle and/or home batter between 9 a.m. and 3 p.m., and not during peak hours of 4 - 9 p.m.
- Pre-cool your home during the summer before 4 p.m.
- Start or program large appliances like your dishwasher, washing machine, or clothes dryer to run and finish before 4 p.m. or start after 9 p.m.
- If you have an electric heat pump water heater or space heating system, observe when they are turning on and try to adjust your heating needs to off-peak periods.
- If you have programmable smart appliances or smart electric panels, program them for optimal use of appliances.
Read more efficiency tips.
Frequently Asked Questions
How will TOU rates affect my monthly electric bill?
If you're on TOU rates, your bill depends on how much electricity you can shift away from the more expensive 4 p.m. - 9 p.m. period. For the average household (450 kWh/month), the E-1 rate is cheaper by about $3.77 per month if there is no change to usage patterns. A household using 800 kWh/month will save $1.61 without change in usage pattern.
|
Monthly Usage
|
E-1 Rate
|
E-1-TOU Rate
|
Difference
|
|
200 kWh
|
$46.29
|
$47.96
|
You pay $1.68 more
|
|
450 kWh
|
$97.71
|
$101.48
|
You pay $3.77 more
|
|
600 kWh
|
$132.13
|
$133.59
|
You pay $1.46 more
|
|
800 kWh
|
$178.02
|
$176.41
|
You save $1.61
|
|
1,600 kWh
|
$361.57
|
$347.66
|
You save $13.91
|
How much can I save by switching to a TOU rate?
Get a personalized estimate! Email utilitiescustomerservice@paloalto.gov with your address for a custom TOU bill impact assessment. We'll analyze your past 6-12 months of usage to show exactly how the TOU rate could affect your bill. This estimate assumes your future consumption pattern stays the same as your historical usage.
How do I switch to the TOU rate? Can I switch back?
Starting January 1, 2026, customers can enroll in a TOU rate plan by completing the online Enrollment Form. We'll process requests in the order received. Limited capacity to accommodate early enrollees may delay your enrollment.
Once you switch to a TOU rate, you must remain on the rate for a minimum of six months. Once back on E-1, customers must wait 12 months before switching to TOU rate again.
Will TOU rates become mandatory in the future?
Unlike PG&E and many other California utilities, the City of Palo Alto Utilities (CPAU) has no current plan to make TOU rates mandatory. This will remain a voluntary option for residential customers.
If Palo Alto's electric supply is carbon neutral, how does shifting my energy use reduce greenhouse gas emissions?
While Palo Alto's electric supply is carbon neutral annually, we rely on the state's hourly electricity market to balance our supply and demand in real time. When you shift your consumption to 9 a.m. to 3 p.m. (super off-peak solar generation hours when there is excess solar power available), you help reduce the state's overall greenhouse gas emissions. Switching away from the peak period of 4 p.m. to 9 p.m. will also help the state’s grid to rely less on fossil fuel based electricity generation.
How do I view my current monthly electric bill?
View your bill and usage patterns online at mycpau.cityofpaloalto.org.
You can see:
- Current and historical bills
- Daily and monthly electricity usage
- Usage patterns by time of day