Time of Use Rates
p. p. 24
Time of Use Rates Time-of-use (TOU) rates, where t e kilowatt hour ·charge depends on whether the customer's load is at 3 am or 3 pm, permit prices to be aligned more closely with the marginal cost of supplying electricity. Increased use o...
AI summary Time-of-use (TOU) rates align electricity prices with the marginal cost of supply, promoting efficiency and better cost alignment for customers. While TOU rates are used for large customers in California, residential adoption faces technological and economic barriers. Widespread implementation could increase demand elasticity and allow for technological innovations in energy management.