Time-variant electricity pricing
Time-variant electricity pricing gives customers control of their electricity bills
Throughout most of the country, residential customers pay the same price for electricity regardless of the time of day or year when it is used.
Also known as “flat rates,” these prices mask the true system costs of making, moving, and using electricity, which vary by time and location according to electricity demand. For example, high-traffic energy times occur predictably in the late afternoon when everyone is running air conditioners, cooking, watching TV, and doing laundry.
This “peak” demand also occurs during certain seasons, including summer and winter, when people require more energy to heat and cool their homes.
When customers don’t know the true price of electricity or how much they will pay at the end of the month, they do not have the basic information needed to conserve energy (and, thus, lower their bills) when it matters most.
Time-variant pricing better reflects the true cost of electricity, allowing people to choose when they power up appliances based on electricity prices at that time.
In addition to lowering electricity bills, this clean energy solution has the potential to reduce air pollution, improve grid resiliency, and optimize our use of renewable energy.
Download the fact sheet
- Report: Making the most of time-variant electricity pricing
- Fact sheet: Time-variant pricing in California
- Policy brief: Designing electric utility rates
Materials from the 2015 TVP forum
- Presentation: David Becker
- Presentation: Dr. Tim Brennan
- Presentation: Dr. Ahmad Faruqui
- Presentation: Dr. Stephen S. George
- Presentation: Wayne Harbaugh
- Presentation: Dr. Carol Miller
- Presentation: Dr. Sanem Sergici
- Presentation: Dr. Frank A. Wolak
- Video part one
- Video part two
- Video part three
- Video part four
- $150The amount most New Jersey customers saved in 16 months in a time-variant pricing pilot.1
Time-variant pricing savings
- "Communicating Thermostats for Residential Time-of-Use Rates: They Do Make a Difference," Mary Klos and Jeff Erickson, Summit Blue Consulting and Elaine Bryant and Susan Lacey Ringhof, Public Service Electric and Gas Company.