User: junkhound, Location: Renton, WA
Asked on: Monday, April 7, 2025 at 10:03 pm EDT
Answered on: Monday, April 7, 2025 at 10:04 pm EDT
Question: PSE (WA state) started a trial run of time of use TOU billing for electric heat customers.started out with 31 cent on peak, and 9 cents off peak. Part of a 1000 or so customer trial period started last yearnew rates, 11 cent off peak, 52 cent peak. WOW, big jump,in on-peak, standard tarrif is 13 cents.SO, last year saved 4-50 bucks a month, only slight discomfort as set TStat back during on peak.new rates, cost me $30 extra, and still have the discomfort of the last hour or so of on peak (7-10 AM and 5-8 PM)Thus, cancelled my participation. Methinks PSE jacked up the on-peak rate as a marketing tool, -- well they did find out at least one customer who cancelled TOU participation.
You've hit on a common frustration with Time-of-Use (TOU) billing: it only works if the rate structure is advantageous to the customer and if they can comfortably adjust their energy consumption to take advantage of the off-peak rates. Your experience perfectly illustrates the potential pitfalls.Here's a breakdown of why your experience is happening and some potential considerations: The Bait and Switch (Maybe)
You're right to be suspicious of the significant jump in on-peak rates. Utilities sometimes use initial trials with attractive rates to incentivize participation and gather data. Once they have a baseline understanding of how customers behave, they might adjust the rates to maximize their own revenue, even if it makes the TOU program less appealing to customers. This isn't necessarily malicious (though it feels that way), but it can be a strategic move to manage grid load and reduce peak demand.
Data Collection and Rate Optimization
The purpose of a trial period is to collect data and refine the TOU rate structure. PSE is likely using the data gathered from the initial trial to understand how customers responded, how much load shifted, and what rates are needed to achieve desired grid management goals.
Why the Huge Jump? Several factors could contribute to the increased on-peak rate: Real Cost of Peak Power
The actual cost of generating and delivering electricity during peak hours is genuinely higher due to the need to fire up more expensive and less efficient "peaker" plants.
Demand Reduction Goals
The significantly higher rate could be designed to aggressively discourage on-peak consumption. They might have determined the initial rate wasn't aggressive enough.
Cost Recovery
Utilities need to recover their costs. If the initial trial period was heavily subsidized, the new rates could be reflecting the true cost of providing the service.
Profit Maximization
While they're often regulated, utilities still have a financial incentive to maximize profits within those regulations. A poorly designed TOU program can be a way to increase overall revenue.
Your Discomfort vs. Savings
You correctly pointed out the trade-off. If the inconvenience of adjusting your thermostat outweighs the savings, then the TOU program isn't worth it. Your comfort and lifestyle are valid considerations.
The Importance of Individual Usage Patterns
TOU is highly dependent on your individual energy consumption patterns. If you're a heavy user during on-peak times (especially with electric heat), TOU is unlikely to be beneficial unless you can drastically shift your usage.
What You Can Do (Beyond Canceling)
Contact PSE and Complain
Express your dissatisfaction with the rate changes and explain how they negatively impact you. Collective complaints can sometimes influence policy changes.
Ask for Detailed Data
Request a detailed breakdown of your energy usage under both the standard tariff and the TOU rate, including the specific costs during on-peak and off-peak periods. This can help you understand exactly where the extra costs are coming from.
Analyze Your Usage
Track your energy usage closely for a month or two under the standard rate to identify opportunities to reduce on-peak consumption, even without TOU. Consider investing in energy-efficient appliances or insulation to lower your overall consumption.
Explore Alternative Heating Options
Consider if there are other heating solutions that could be more cost-effective in the long run, depending on your climate and usage patterns.
Look for Community/Consumer Advocacy Groups
See if there are local consumer advocacy groups or organizations focused on energy affordability. They may be able to provide support and represent your interests with the utility.*
Consider Solar + Battery Storage
This is a more significant investment but can give you more control over your energy costs, especially during peak hours.
In Conclusion:
Your experience is a valuable lesson for other consumers considering TOU billing. It highlights the importance of carefully evaluating the rate structure, understanding your own energy usage patterns, and being prepared for potential rate adjustments over time. Your decision to cancel was probably the right one if the current rates and discomfort outweigh the savings. Don't hesitate to be vocal about your concerns with PSE and advocate for fairer and more transparent TOU programs. Flag for review