SCE's New Pricing Changes Could Save Businesses Money
As California adopts cleaner energy, the cost to deliver power throughout the day is changing. The use of energy is now less costly during midday and more costly in the late afternoon and evening. Southern California Edison will be rolling out new rate changes which could help some businesses save on their utility bills. All businesses should pay close attention to new on-peak and off-peak hours to manage their energy usage and expenses. The new Time-Of-Use periods and changes to Critical Peak Pricing will go into effect in March 2019.
The key to reducing costs on the new Time-Of-Use periods (TOU) is to manage or reduce usage during the highest-priced “On-Peak” hours and, whenever possible, shift usage to the lower-priced “Off-Peak” and “Super Off-Peak” hours. You may already be conserving your energy use, but by changing when they use electricity, businesses can maximize your energy savings.
Notable changes are in TOU periods are: 1) The On-Peak period has moved to 4:00 p.m. – 9:00 p.m. on summer weekdays (previously, the On-Peak Period was 12:00 p.m. – 6:00 p.m. on summer weekdays.); A new “Super Off-Peak” period promises the lowest cost for energy use from 8:00 a.m. – 4:00 p.m. on all winter days. While previously weekends were always considered Off-Peak, now certain times of day and certain seasons may be considered On-Peak.
Critical Peak Pricing (CPP) for businesses is an optional rate that offers a discount on summer electricity rates in exchange for higher prices during 12 CPP event days per year, usually occurring on the hottest summer days. By reducing your electricity use during CPP events, you can lower your electric costs during the summer season – when your bills are typically the highest.
To help businesses try out CPP without risk, SCE is providing one full year of Bill Protection. which guarantees that if a business pays more during their first year on CPP, they’ll receive a credit for the difference. Businesses can choose to unenroll from CPP at any time. Keep in mind that if you unenroll from CPP, you will not be able to make another change to your account for at least one year.
“We lowered our electric bill by enrolling in Critical Peak Pricing and reducing our energy usage during CPP event hours,” confirms Paola Bravo, president and co-owner of S. Bravo Systems. “We received $11,300 in incentives in 2014 and nearly $15,000.”
Critical Peak Pricing events can be called year-round, 12 times every calendar year on non-holiday weekdays between 4 p.m. and 9p.m. However, CPP events usually occur during the summer season on the hottest summer days. CPP events are usually called when electricity demand peaks due to extreme or unusual temperature conditions. Other triggers can include higher energy prices, electrical emergency alerts issued by the California Independent System Operator (CAISO), or an SCE system emergency that affects local grid operations. On these days, the costs of energy will increase during On-Peak demand times between 4:00 p.m. and 9:00 p.m.
SCE can help you understand how these changes may impact your operation. Learn more at sce.com/bizratechanges.