The Survey of TOU Rates in the United States
Key Findings
The survey of residential TOU rates in the United States
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14% of all US utilities offer a residential TOU rate; roughly half of IOUS offer one
Where TOU is available, around 3% of customers are enrolled on average
APS has the highest enrollment, with 51% of its residential customers on a TOU rate
74% of TOU rates have only two pricing periods
71% of TOU rates have a price ratio of at least 2-to-1
Half of TOU rates have a price differential of at least 10 cents/kWh
Of the utilities offering TOU rates, roughly half offer more than one TOU option
Emerging trends
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To address solar PV integration challenges, new TOU rates are being introduced with a low mid-day price
and a peak period that is delayed until later in the evening
A few utilities have recently introduced TOU rates on a default (i.e., opt-out) basis for all residential
customers
Volumetric TOU rates are increasingly being proposed by environmental advocates to address grid cost
recovery issues associated with rooftop PV adoption (as an alternative to fixed charges or demand charges)
TOU rates continue to be piloted in North America and internationally; the pilots consistently find that on
average customers shift consumption from peak periods to off-peak periods
Privileged and Confidential
Prepared at the Request of Counsel
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