What Do Time-of-Use Rates Mean for Your Electricity Bill in Texas?

Managing your electricity bill in Texas can sometimes feel like solving a puzzle. Understanding time-of-use (TOU) rates and how to make the most of them can make a noticeable difference in your household budget. With living costs rising, optimizing energy usage has become almost as important as planning for your family’s financial security. To protect your family from unexpected expenses, it’s a good idea to compare the best final expense insurance plans.

What Are Time-of-Use (TOU) Rates?

A time-of-use (TOU) rate is an electricity plan where the cost per kilowatt-hour (kWh) varies depending on the time of day and day of the week you use electricity. Utilities in Texas offer these plans to encourage smarter energy consumption and reduce peak demand that can strain the grid.

TOU rates divide the day into periods when electricity is more expensive (peak), moderately priced (mid-peak), or cheaper (off-peak). Understanding these periods helps you lower your monthly energy bills without sacrificing comfort.

The Three Time Periods in Texas

Although exact hours vary by provider, TOU plans in Texas generally divide the day into three main periods:

• Peak hours: The most expensive times, usually late afternoon to early evening (3:00 PM – 7:00 PM on weekdays).
• Mid-peak hours: Moderately priced periods, often in the morning or early afternoon.
• Off-peak hours: The cheapest electricity rates, usually overnight (11:00 PM – 7:00 AM) and all day during weekends and holidays.

Note: Hours and prices depend on your provider. Always check your local energy plan for exact details.

Example of TOU periods in Texas

Weekday vs. Weekend Rates

Time-of-use rates vary by day:

• Weekdays (Monday–Friday): All three periods—peak, mid-peak, and off-peak—apply. Planning appliance use can save money.
• Weekends and holidays: Most TOU plans treat the entire day as off-peak, giving families a chance to run high-energy appliances without increasing bills.

Planning energy usage by both time and day is key to maximizing savings.

Tips to Save with TOU Rates

Using electricity during off-peak hours can reduce bills significantly. Some practical tips:

• Program your appliances: Washers, dryers, and dishwashers often allow scheduling cycles for off-peak hours.
• Avoid high-energy tasks during peak hours: Cooking or using heating/cooling during off-peak times reduces costs.
• Use energy-efficient appliances and LED bulbs: Small upgrades lower consumption across all periods.
• Adjust your energy plan to your usage: Make sure your plan matches your household’s actual consumption to avoid overpaying.

Should You Switch to a Time-of-Use Plan?

It depends on your habits:

• If your household is away during peak hours or you can shift appliance use to off-peak times, a TOU plan can save money.
• Flexible households or larger families who can organize appliance schedules may benefit most.

Many Texas energy providers offer apps showing real-time electricity rates, making it easier to take advantage of off-peak hours. Before switching, review your monthly consumption and ensure your routine can adapt to the TOU plan. And remember, protecting your family from unexpected costs is just as important—take a moment to compare the best final expense insurance plans to find the one that suits your household.