Seattle City Light launches new ‘Time of Use' electricity rate

The time of the day that you use electricity at home could determine how expensive or inexpensive your power bill is.

Seattle City Light launched a new rate option called "Time of Use" for residential customers, which started May 4.

Customers can choose to sign up for the rate at any time through their Energy Insights platform. The platform shows estimates for how residents' power bills may look in both the regular and Time of Use" option.

Customers who've opted into the new rate will be charged differently during three periods of the day: peak, mid-peak and off-peak hours. Peak rates are twice as high as off-peak and mid-peak is 1.75 times as high as off-peak.

Peak time is 5 p.m. to 9 p.m., when many people are home from work and cooking dinner. Mid-peak is 6 a.m. to 5 p.m. and 9 p.m. to midnight, and off-peak is midnight to 6 a.m. when most people would be expected to be asleep. On Sundays and some holidays, mid-peak pricing applies all day from 6 a.m. to midnight.

You need an advanced meter to sign up. That means looking for a seven-digit number that starts with a "2 on the meter's badge, Seattle City Light said.

The idea is to encourage customers to shift their electricity use to off-peak times to lower demand on the electrical grid, Seattle City Light said, which reduces strain and helps the utility avoid costly infrastructure upgrades.

People using electricity at peak hours isn't new, but decreases in electrical supply and increases in electrical demand are. More people are heating and cooling their homes, cooking, and charging their vehicles with electricity while clean energy mandates go into place. And at the same time, the state's hydropower dams are reaching their capacity.

Meeting demand is getting more challenging and more expensive, especially on the coldest days, said City Light spokesperson Julie Moore. The utility is continuously developing new programs and resources to both lower demand and increase their ability to meet it sustainably.

Already, 900 customers have enrolled in the "Time of Use" rate. During a pilot program in 2020 to 2023, the 200 trial customers saved an average of $12 per month or $144 a year, Moore said. She noted that some customers are better positioned to shift their usage than others.

Seattle City Light has some tips for conserving energy and how to save the most under this new rate:

* Run appliances like dishwashers and washing machines at night or early in the morning, perhaps with a delay-to-start feature.

* Use smaller appliances during peak hours by opting for an air fryer or slow cooker instead of the oven.

* Charge your electric vehicle overnight.

* Warm or cool your home during off-peak hours by using smart thermostats.

* Open your windows to cool during peak hours

* Use blinds to cool your home in summer or insulate it in winter.

* Schedule devices to turn off with smart plugs or power strips.

* Don't use your dryer. Air dry and wash with cold water.

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