Residents of an Alberta city are trying out "time of use" electricity pricing

Residents of a northern Alberta city are trying out the time of use (TOU) electricity pricing, meaning the price you pay depends on when you use electricity.

ATCO says that just like rush hour traffic, the electricity grid experiences high demand peaks throughout each day.

“With TOU, rates are increased at these peaks to encourage limiting electricity usage and shifting electricity usage to lower demand periods, easing demand and stress on the grid.”

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In a TOU program, the price you pay depends on when you use electricity. TOU rates fluctuate throughout the day on pre-set times according to the cost of providing electricity and supply and demand.

ATCO says it is planning on conducting a pilot study in Grande Prairie in 2023, pointing to numerous reasons why TOU would be effective, including:

• Time of Use electricity pricing gives Albertans the opportunity to take control of their energy use and electricity bills;
• Time of Use rates provides opportunities to save by conserving and shifting energy use to cheaper times of the day;
• Time of Use rates encourage the use of energy-saving technologies, such as smart thermostats and delay start options for appliances like dishwashers; every little bit of shifting electricity usage to off-peak times helps with saving.

So, there you have it. If TOU electricity pricing expanded across Alberta, would you sign up to try and save some coin on off-peak hours to vacuum or start your oven?