Time of Use Control

Time of Use is a billing tariff used by Utilities that encourages the electricity to be consumed during nighttime periods rather than during the day.  The day is split into several pricing categories which may include on, off and mid or shoulder peaks.  For example a tariff could be configured as follows:

ON PEAK – 9:00am – 5:00pm   energy cost 9.5 cents per kWh

SHOULDER PEAK –  7:00am – 8:59am and 5:01pm – 7:00pm  energy cost 7.2 cents per kWh

OFF PEAK 7:01pm – 6:59am  - energy cost  5.3 cents per kWh

Although it is less expensive to consume electricity during the overnight period, it is not always possible to move ALL production to the off peak due to staffing issues or the fact that the off peak period doesn’t provide enough time to meet production requirement.

When you need to operate during the Shoulder or On Peak periods, it is usually desirable to carefully monitor electricity use to minimize costs during this period.

LCA Energy Management Software provides Companies with an effective way to monitor electricity use in real time and automatically control selected equipment to ensure that budgetary targets are met.

While the Time of Use Tariff encourages OFF PEAK usage, it also tends to penalize ON PEAK usage.  After all the point is to encourage load shifting to the OFF PEAK in order to reduce strain on the power distribution system when daytime loads are high. Getting enough companies to minimize use during the day can offset the need for building additional generation facilities and extend the life of power distribution equipment on the grid.