How does a time-of-use program with the power company work?
Most power companies offer a time-of-use program of some sort. In Raleigh, NC, the power company is called Carolina Power and Light (CP&L), and they offer a time-of-use program that makes a good example (even though every program is different). Most people pay a flat rate for their power. For example, let’s say that CP&L’s flat rate is about 7.4 cents per kilowatt-hour. If you use 1,000 kilowatt-hours in a month, you pay $74.00 for the month (plus some taxes). The idea behind a time-of-use program is to put a special power meter on your house so that the power company can bill you differently depending on the time of day. For CP&L, there are only two different time periods: “on-peak” and “off-peak.” In the summer (April through September), the on-peak hours are 10 a.m. to 9 p.m. on weekdays. Nights, weekends and vacations are off-peak. During the winter, the on-peak hours are slightly different (6 a.m. to 1 p.m. and 4 p.m. to 9 p.m. on weekdays). There are two different programs in the
