Time-Of-Day (TOD) Rate Option (New Mexico)
Frequently Asked Questions
What are Time-Of-Day (TOD) rates?
TOD rates are rates that vary based upon the demand for electricity during certain periods or times of day. Lower demand periods result in discounted rates while higher demand periods result in a premium or higher rate. TOD rates allow a customer an opportunity to reduce their bill by choosing or changing when you use electricity. TOD rates are available as part of most of EPE’s standard service rates.
What are the rates and the time when they apply?
For the residential service rate, rates vary by “Non-Summer” and “Summer” rates and can be seen here.
When is on-peak time?
On-Peak time occurs during the summer months of June through September, only, and encompasses the hours of 3pm – 7pm.
When is off-peak time?
Off-Peak hours include all hours during the months of October through April and any hours that are not on-peak during June through September.
Is there a penalty for consuming electricity during the on-peak hours of June through September?
TOD rates are designed to incentivize savings by consuming during off-peak hours. Notice that on-peak per kWh costs for residential are approximately 4 times more expensive that off-peak. So, normal or additional consumption during these hours can contribute significantly to higher bills offsetting any potential savings of a TOD rate. Being prepared to modify any daily activities during these hours beginning in June is extremely important in managing your TOD rate to produce savings.
Why must I remain on TOD for a full 12 months?
TOD rate options are designed around customers usage for the year, and the cost differences for EPE of providing service in summer and winter. With the standard tariff, rates are level across time periods. With TOD, higher summer on-peak rates are offset by lower off-peak and winter rates. This reflects the fact that summer costs are higher. A customer participating on TOD can save money by shifting their usage out of the on-peak period during the summer months, and then can enjoy lower rates overall in the off-peak and winter months. A customer taking service on a TOD rate for only a portion of the year does not receive the full benefit of the lower rate periods to offset the higher cost on-peak periods.
Do I have to take any action to save with TOD rates?
Active and conscientious participation is required to obtain savings on a TOD rate. It is most important to be aware of the beginning of the summer period and how to adjust daily activities to benefit from the TOD rate.
How can I reduce my on-peak energy usage?
One of the most effective reductions, if you have a refrigerated air conditioner, involves precooling your home during the morning to early afternoon off-peak hours (prior to 3pm), and turning the power off during the on-peak 3-7pm time period. Similarly, manually turning off any unneeded appliances and lights, and delaying other activities such as washing and drying of clothes, are important ways to shift your on-peak consumption.