Seattle City Light has been helping customers save energy and money since 1977. Over the years, our focus on energy efficiency has lowered bills and reduced the need for expensive new power sources. Now, we are introducing a Time of Use (TOU) rate this year to continue this effort.
TOU rates charge different prices for electricity based on when you use it. This change helps manage energy use more efficiently. Plus, it has benefits for customers, communities, and the utility.
But exactly why are we offering a Time of Use rate? We asked Chief Customer Officer Craig Smith to walk us through why this is the right choice.
Making energy use more efficient
For almost 50 years, City Light has worked hard to promote energy efficiency. Craig explains, “Since 1977, our programs and investments have saved about 13% of our retail load, meaning we haven’t had to supply that energy through other, often more expensive, resources.”
Using energy wisely has kept costs lower for customers and delayed the need for costly new power plants. But energy needs are increasing, especially because of things like electric cars and new technologies. This puts more pressure on the power grid during peak hours, when energy costs are higher.
Craig says, “Meeting demand during these peak periods is very expensive. We need to find ways to shift load from high-cost periods to lower-cost periods. This is where a Time of Use rate can help us manage our system more efficiently, reduce costs, and involve customers in aligning their use with our costs.”
Why now?
Craig shares that introducing a TOU rate now makes sense for City Light given where the utility industry is headed. “We can’t just flip a switch. Educating customers and preparing for future demands takes time.”
Electricity prices are rising, and the power grid is often stretched during peak hours. Thanks to new tools like Advanced Metering Infrastructure (AMI), we can now collect real-time data about energy use and communicate that to customers. “If we’d had these tools earlier, we would’ve started this process sooner,” says Craig.
Using TOU rates takes careful planning and time to put in place. “Behavioral changes and purchasing patterns don’t shift overnight. Starting now ensures we’ll be ready to meet future challenges head-on,” Smith explains.
What are TOU rates?
Craig explains TOU rates with a simple example. “Think of phone plans that used to have ‘nights and weekends’ discounts. Companies incentivized customers to make calls during off-peak hours when they had extra capacity. TOU rates work similarly but for electricity. Energy costs more during peak demand hours, so we aim to reward customers who can shift their usage to lower-cost periods.”
By using energy during off-peak hours, you can save money and reduce strain on the power grid. This helps create a more balanced and efficient energy system.
How a TOU rate could help you
TOU rates are designed to give customers more control over their electricity costs. Craig says, “It’s about helping customers not just use energy more efficiently but also giving them the ability to shift usage to lower-cost periods.”
For example, energy costs less during off-peak hours (like at night). If you can adjust when you use appliances like dishwashers or laundry machines, you can save money. Craig acknowledges that not everyone can easily change their habits, which is why City Light will provide resources and tools to help.
“We know some customers will be better positioned to shift their load than others. That’s why we’re committed to providing tools and resources to help everyone find opportunities to benefit from a TOU rate,” he says.
Our TOU rate is also part of a larger strategy to use energy-saving measures, solar power, and battery storage to manage costs effectively. These steps reflect City Light’s commitment to sustainability.
Continuing a long legacy
City Light’s move to offer a TOU rate builds on our long history of helping customers save money and conserve energy. By using technology and involving customers in energy decisions, we’re preparing for the future.
“This transition is grounded in the same values we’ve always held — to help our customers save money, manage costs, and use energy responsibly,” Craig says.
What’s next?
We’ll keep you updated as the rollout approaches in mid-2025. Currently, we are developing new tools to help you better understand your energy use and explore rate options that fit your needs. Start preparing now by creating an online account at the Utility Services Website where you can track your energy use and see where small changes can make an impact.
If you’d like to stay informed about TOU, sign up here to receive email updates on our Time of Use rate. You can also learn more on our website.