As energy costs rise and utilities push toward a more sustainable grid, many Southern California homeowners are noticing changes in how they are billed for electricity. One of the biggest shifts is the widespread adoption of Time-of-Use (TOU) rates, which charge different prices for electricity depending on the time of day it is consumed.
If you live in Southern California and have seen higher summer bills or confusing charges, you are not alone. Understanding TOU rates can help you take back control of your energy costs, especially if you are considering solar panels, battery storage, or simply want to adjust your energy habits.
In this blog, we will explore what Time-of-Use rates are, why they are important, and how you can get the most benefit from them. This blog also dives into the TOU rates for SCE, LADWP, SDG&E, IID, and APU.
What Are Time-of-Use Rates?
Traditional electricity billing was simple: a single flat rate for every kilowatt-hour (kWh) used. With TOU rates, the cost of electricity varies based on when you use it. For some utility companies, there are different TOU rates for winter and summer.
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- On-Peak Hours: Times when electricity demand is highest, usually late afternoon to evening (such as 4 p.m. to 9 p.m.). These are the most expensive hours since more people are home and using electricity, which strains the grid.
- Off-Peak Hours: Times when demand is lower, such as late at night and early morning. Rates are much cheaper during these hours. Off-peak hours are cheaper due to a lack of demand and less strain on the grid.
- Mid-Peak or Shoulder Hours: Periods between off-peak and on-peak, often at moderate pricing.
The purpose of TOU billing is to encourage customers to use less energy when the grid is under stress and more when renewable energy like solar is plentiful.
Why TOU Rates Matter for Homeowners
1. Direct Impact on Monthly Bills
If you consistently run appliances such as air conditioners, pool pumps, or EV chargers during on-peak hours, you will likely see higher bills. Shifting usage to off-peak can significantly reduce costs.
2. Solar and Battery Compatibility
TOU rates make solar panels and batteries even more valuable. Solar panels generate the most energy during midday, right before on-peak hours begin. A home battery can store that solar power and discharge it when rates are highest, helping you avoid peak pricing altogether.
3. Behavioral Adjustments
Even simple changes, such as running the dishwasher after 9 p.m. or pre-cooling your home before 4 p.m., can make a noticeable difference.
Time-of-Use Rates by Utility in Southern California
TOU rates are not the same across utilities. Here is a breakdown of some of the biggest providers in Southern California:
Southern California Edison (SCE)
SCE customers are automatically placed on TOU plans. A common residential plan is TOU-D-4-9 PM.
Summer TOU rates (June-September):
- On-Peak (Weekdays from 4 PM to 9 PM): $0.58 per kWh
- Off-Peak (Weekdays, most weekends, and holidays from 9 PM to 4 PM): $0.36 per kWh
- Mid-Peak (Weekends from 4 PM to 9 PM): $0.47 per kWh
Winter TOU rates (October-May):
- Off-Peak (Everyday from 9 PM to 8 AM): $0.38 per kWh
- Super Off-Peak (Everyday from 8 AM to 4 PM): $0.35 per kWh
- Mid-Peak (Everyday from 4 PM to 9 PM): $0.51 per kWh
The listed rates above are for SCE’s TOU-D 4 PM to 9 PM. There are other plans for 5 PM to 8 PM. SCE also offers EV-focused TOU plans that provide cheaper overnight charging. To learn more about SCE’s TOU rates, see here.
Los Angeles Department of Water and Power (LADWP)
LADWP has different TOU schedules depending on the season. For residential Tier 1 customers:
- High Peak (Monday-Friday from 1 PM to 4:59 PM)
- January-March: Around $0.25 per kWh
- April-May: Around $0.26 per kWh
- June: Around $0.31 per kWh
- July-September: Around $0.33 per kWh
- October-December: Around $0.27 per kWh
- Low Peak (Monday-Friday from 10 AM to 12:59 PM and 5 PM to 7:59 PM)
- January-March: Around $0.25 per kWh
- April-May: Around $0.26 per kWh
- June: Around $0.26 per kWh
- July-September: Around $0.27 per kWh
- October-December: Around $0.27 per kWh
- Base Period (Monday-Friday from 8 PM to 9:59 AM + all day on the weekend)
- January-March: Around $0.23 per kWh
- April-May: Around $0.23 per kWh
- June: Around $0.23 per kWh
- July-September: Around $0.24 per kWh
- October-December: Around $0.25 per kWh
Winter rates are generally lower, but the peak pricing spread remains. LADWP also offers an EV-TOU option for lower nighttime charging rates. To learn more about LADWP’s rates, please see here.
San Diego Gas & Electric (SDG&E)
SDG&E is known for having some of the highest rates in the state. What makes SDG&E unique is that they have Community Choice Aggregators (CCA), which buy or produce energy for specific communities. CCAs typically have a lower cost per kWh. Under the SDG&E TOU-DR2 plan:
Everyday:
- On-Peak (4 p.m. to 9 p.m.): $0.633 per kWh
- Off-Peak (all other hours): About $0.332 per kWh
This is just for SDG&E’s TOU DR-2 plan. In their TOU-DR1 plan, customers have access to “Super Off-Peak” hours, which have the lowest rates. This is a strong option for EV owners. To learn more about SDG&E’s rates, see here.
Imperial Irrigation District (IID)
IID, which serves Imperial Valley and parts of Riverside County, also uses TOU pricing. Rather than automatically being placed into TOU rates, IID gives its customers the option to use TOU rates. Similar to SCE, IID also has different rates for summer and winter.
Summer (May-October)
- On-Peak (4 PM to 9 PM): Around $0.42 per kWh
- Off-Peak (all other hours): Around $0.13 per kWh
Winter (November-April)
- On-Peak (5 AM to 9 AM and 5 PM to 9 AM): Around $0.31 per kWh
- Off-Peak (all other hours): Around $0.16 per kWh
Customers of IID who do not use the TOU rates get charged $0.1976 per kWh, no matter the time of day. To learn more about IID’s current and future rates, see here.
Anaheim Public Utilities (APU)
As a municipal utility, APU’s TOU rates tend to be lower than those of investor-owned utilities. APU has different rates for winter and summer, just like SCE and IID.
Summer Weekdays (July 1 – October 31)
- On-Peak (4 PM to 9 PM): Around $0.33 per kWh
- Off-Peak (all other hours): Around $0.17 per kWh
Winter Weekdays (November 1 – June 30)
- On-Peak (4 PM to 9 PM): Around $0.31 per kWh
- Off-Peak (9 PM to 8 AM): Around $0.16 per kWh
- Super Off-Peak (8 AM to 4 PM): $0.12 per kWh
During the summer weekends, customers are charged the off-peak rate all day. For winter weekends, customers are charged the super off-peak rate all day except from 4 PM to 9 PM, where they get charged the off-peak rate. To learn more about APU’s rates, see here.
Strategies to Save Money with TOU Rates
1. Shift Energy Usage
Run energy-intensive appliances such as laundry machines, dishwashers, and EV chargers during off-peak hours. Many appliances now come with built-in delay settings to make this easy.
2. Leverage Solar and Storage
A solar system paired with a battery allows you to avoid buying electricity during on-peak hours. This strategy is especially effective for SDG&E and SCE customers who face high peak prices.
3. Pre-Cool Your Home
Run your AC before peak hours and let your home “coast” through the most expensive times of day. Smart thermostats can automate this process.
4. Consider EV Rate Plans
If you drive an electric vehicle, ask your utility about specialized TOU rates that reward nighttime charging.
Final Thoughts
Unlike the tax credit, TOU rates are here to stay, and California’s energy grid is only moving toward greater reliance on variable pricing to encourage smarter consumption and align demand with renewable supply. At first glance, these rate structures can feel like a burden; but with the right approach, they can become an opportunity to lower bills and increase energy independence.
Whether you are a customer of SCE, LADWP, SDG&E, IID, or APU, knowing when and how you use energy is more important than ever. Pairing smart energy habits with solar and battery storage puts you in the best position to control your costs and protect yourself from rising utility prices.
Still finding that TOU rates aren’t enough to lower your energy bill? Contact OC Solar today to discover how you can reduce, or even eliminate, your electricity costs. Our team will design a free, personalized system tailored to your energy usage and future goals. Request your free quote and schedule a consultation today!