Time-of-Use Electricity Rates: When to Run Major Appliances to Cut Your Bill

Under electric utility Time-of-Use (TOU) rate plans, electricity prices during on-peak hours (typically 4:00 PM to 9:00 PM on weekdays) can be two to three times higher than off-peak rates. Shifting high-consumption appliances like clothes dryers, dishwashers, and electric water heaters to off-peak or super-off-peak hours can save $200 to $450 per year without sacrificing appliance usage.

Key takeaways

• Peak hours generally run from 4:00 PM to 9:00 PM when residential air conditioning and cooking overlap with regional grid demand.
• Off-peak rates apply during late night, early morning, and weekend hours when wholesale generation costs are lowest.
• Running a clothes dryer during peak hours can cost $1.20 per load, compared to 40 cents off-peak on aggressive TOU plans.
• Built-in delay-start timers allow dishwashers and washing machines to run overnight automatically.

How Time-of-Use rate tariffs work

Traditional flat-rate electricity charges the same price per kilowatt-hour regardless of when you flip a switch. Because grid operators must fire up expensive natural gas peaker plants to satisfy late afternoon air conditioning peaks, utilities across California, Arizona, New York, and Georgia have transitioned millions of households to TOU rate structures.

A representative TOU rate plan in the Southwest features three tiers: Peak (4:00 PM to 9:00 PM) at 48¢/kWh, Off-Peak (6:00 AM to 4:00 PM and 9:00 PM to 11:00 PM) at 22¢/kWh, and Super Off-Peak (11:00 PM to 6:00 AM) at 12¢/kWh. Running an appliance during super off-peak hours cuts energy costs by 75% compared to running it right after work.

Check state-by-state average electricity prices in our refrigerator state cost analysis or explore our clothes dryer state cost rankings.

High-impact appliances to schedule

Focus your scheduling efforts on appliances that draw high wattage for sustained periods:

• Clothes dryers: Drawing 4,500 to 5,500 watts, a single dryer load shifted from peak (48¢) to super off-peak (12¢) saves $1.19 per cycle. Over 300 annual loads, that simple habit change saves $357 per year.
• Dishwashers: A normal heated wash cycle uses 1.2 kWh. Delaying the start until midnight costs 14 cents instead of 58 cents on peak plans.
• Electric and hybrid water heaters: Many modern heat pump water heaters include programmable scheduling or smart grid CTA-2045 ports that heat water before 4:00 PM, coasting through peak hours on stored hot water.
• Level 2 EV charging: An electric vehicle drawing 7.2 kW adds 30 to 50 kWh per charge. Charging overnight rather than at 5:00 PM saves $10 to $18 per charge.

Using appliance delay timers

You do not have to stay awake until 11:00 PM to start laundry or dishes. Most modern dishwashers and clothes washers feature a Delay Start button on the control panel. Loading dirty dinner plates at 8:00 PM and selecting a 4-hour delay automatically starts the cycle at midnight, capturing super off-peak electricity while you sleep.

FAQ

Do refrigerators benefit from Time-of-Use scheduling? Standard refrigerators must run 24 hours a day to preserve food safety and cannot be turned off. However, smart refrigerators with TOU integration schedule automatic defrost heating cycles to run off-peak.

How do I find out if I am on a Time-of-Use plan? Review your monthly electric utility bill. If your bill lists separate kWh totals for Peak, Off-Peak, and Shoulder hours with different rates, you are enrolled on a TOU tariff.

Can a programmable thermostat help with TOU rates? Yes. Pre-cooling your home to 70°F before 4:00 PM using cheaper off-peak electricity allows your home to drift up to 76°F during peak hours, drastically reducing air conditioner compressor runtime.

Data notes & sources

Rate tariff structures reflect utility rate filings from the California Public Utilities Commission and Arizona Public Service rate schedules.

Utility rate design: California Public Utilities Commission Time-of-Use Overview.

Federal smart grid guidance: Department of Energy Smart Grid and Grid-Interactive Buildings.