Time-Of-Use Rates FAQ

Time-Of-Use (TOU) pricing is a variable rate structure that charges for energy depending on the time of day and the season the energy is used. With TOU rates, your bill will be determined by both when you use electricity and how much you use. 

Beginning January 2014, most business, agricultural and pumping accounts transitioned to a Time-Of-Use (TOU) rate plan. Customer were notified by mail when their account was about to switch to a TOU rate plan.

No, you will not. This required transition is only for non-residential customers. However, there are Time-Of-Use (TOU) options for residential customers. Learn More >

With a Time-Of-Use (TOU) rate, you can reduce your cost by lowering your electricity use during summer On-Peak hours when the cost of electricity is highest.

We understand that many customers will not be able to reduce energy usage during the summer On-Peak hours. We have compiled a list of other ways your business can save energy based on your industry. Learn More >

Yes, there may be several options available for you. Learn more about your rate options at sce.com/MyAccount.

For Commercial and Industrial customers

TOU-GS-1: For customers with demands ≤20kW

• Option A (no demand charges and higher TOU energy charges)
• Option B (includes both year-round Facilities-Related and Time-Related Demand charges during the summer season, and lower TOU energy charges)

TOU-GS-2: For customers with demands >20 and <200kW

• Option A (includes year-round Facilities-Related Demand charges and higher summer TOU energy charges0
• Option B (includes both year-round Facilities-Related and summer Time-Related Demand charges, and lower summer TOU energy charges)

For Agricultural and Pumping customers

TOU-PA-2: For customers with demands <200kW

• Option A (includes year-round Facilities-Related Demand charges and higher summer TOU energy charges)
• Option B (includes year-round Facilities-Related and summer Time-Related Demand charges, and lower summer TOU energy charges)

Learn more about additional rate options.

Time-Of-Use (TOU) energy charges are the cost for the amount of energy used in a billing cycle. It’s based on a cost per kilowatt-hour you use in each TOU period. It’s important to remember that the cost of a kilowatt-hour varies by the time of day, day of week, and season.

Facilities-Related Demand charges are billed on a $ per-kilowatt basis throughout the year. It is based on the maximum registered demand during the billing period—no matter what season, day of the week, or time of day.

Time-Related Demand charges are applied only during SCE’s summer season billing period (June 1 through September 30). These charges are in addition to and separate from Facilities-Related Demand charges. Time-Related Demand charges are $-per-kilowatt charges based on your business operation’s greatest demand for electricity during an applicable peak periods.

An easy way to understand the difference between Demand charges and energy charges is by using this automobile analogy. Think of the car's speedometer as the demand meter and the odometer as the energy meter.

Here’s an example:
Let’s say that two cars are traveling from Los Angeles to Las Vegas. Car A travels 60 miles per hour for four hours, whereas Car B travels 80 miles per hour for three hours. Both cars traveled 240 miles, which would be equivalent to kilowatt hours of “energy” charges on your electric bill. However, Car A never exceeded a speed of 60, which would be equivalent to kilowatts of “demand” charges on your electric bill. As a result, Car A placed less demand on the vehicle than Car B, who traveled the same 240 miles, but at a much faster rate of 80 miles per hour.

It takes much more “demand” to drive the car at a faster speed of 80 miles per hour than it does to drive car at 60 miles per hour—and consequently more wear and tear on the engine.

Learn more about demand and how it can impact your energy bill.

Time-Of-Use rates better align the price of electricity with the cost of electricity at the time it is produced and the cost to deliver it to your business. Rates will generally be higher during summer weekday afternoons when demand is higher, and lower at all other times, which provides an incentive for customers to shift electricity use away from more expensive peak hours. This can help you save money and reduce strain on the power grid.

Yes, you can elect another Time-Of-Use (TOU) rate at any time after your account is transitioned to a TOU rate in 2014. Your account will be switched on your next scheduled bill date after we receive your request, and you will not be able to change your account to another rate schedule or option for the following 12 months. 

Yes, there are several options available to you. Learn more about your rate options at sce.com/MyAccount, or call us at 1-866-743-1645 to request a rate analysis.

If you can’t reduce or shift how much electricity you use during this time frame, consider installing more energy-efficient equipment or savings and incentives for your business. Learn More

Although DA accounts are eligible for TOU rates, they have no impact on the costs that DA customers pay SCE. Electricity costs do not change based on time of day for DA accounts. In addition, DA accounts do not pay time-related demand charges.

Please also note that for DA accounts, Option A and Option B differ in costs for the TOU-GS-1 rate. While many customers would be better off on Option A, some customers may do better on Option B based on how they use electricity. If you believe you may be better off on Option B, you may request a rate analysis from SCE.

Small changes can make a big impact on your electricity saving efforts. Cooling costs can really add up in the summer. Visit us at sce.com/EnergyTips to view a quick list of tips designed to help you control and reduce your electricity costs during the summer months.