Not long ago our power company was proactively offering a time-of-use pilot program. I was naïve, and didn’t spend enough time researching it before I enthusiastically signed up. I had originally thought that we would be able to cut our electricity costs, as long as I used our oven, dishwasher, and washer and dryer only during the less expensive periods throughout the day. Unfortunately, I failed to understand how the program actually worked.
How does the time of use program work?
Every customer pays the basic rate regardless of the time of day or day of the week. When a customer signs up for the program, they pay the basic rate during off-peak times such as between 11am to 5pm, and from 9pm to 7am. During the “peak” times, the customer pays double the basic rate. However, in the summertime, customers pay a rate lower than the basic rate at all times during the day. Therefore, people who expect to use less electricity in the colder months may benefit from the program. Unfortunately, when we received our bill, we ended up paying about $65 more than if we had not signed up. When we did the math, we realized that we use more power in the winter than in the summer, so this plan definitely was not advantageous for us. It was also inconvenient, as it limited when I did the dishes or did laundry.
Lesson learned.
So, I made a mistake. I shouldn’t have rushed in and decided to sign up for this program. Lesson learned. I should take some time to really understand what’s being offered rather than getting misled by promotional materials sent to me in my inbox. This applies across the board, too, not just for electricity bills. Companies need to make money, so they are not likely going to offer programs that cause them to earn less. Therefore, we all need to be really wary of any gimmicks offered that are supposed to provide customer savings.
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