WHAT IS TIME-OF-DAY METERING?
Time-of-day metering is a rate option that is offered by many utilities. When elected by the customer, a meter that records demand, time, and energy usage is installed in place of the existing electrical meter. The metering option benefits utility companies by decreasing the required capacity. The metering option benefits customers by providing reduced demand and usage rates during off-peak times, which gives customers a chance to reduce their utility bill.
HOW DOES TIME-OF-DAY METERING WORK?
At a given time a utility company has a certain capacity of energy available
to its customers. A utility must be prepared to meet the demands placed
on the grid by the consumers. During on-peak hours, demands are typically
highest because of manufacturing loads, office loads, air conditioning
loads and etc. The on-peak hours usually vary from around 9:00 a.m. -
6:00 p.m. Monday through Friday. During this on-peak period, utility companies
must have enough capacity on-hand to meet the loads placed on them by
their customers. Having this on-hand capacity creates additional expenses
for the utility. To lessen the required