Time-of-Use Electricity Rates: How to Cut Your Bill by 20%

You open your latest electricity bill and brace for impact. In 2025, the average American household pays $0.158 per kWh, but if you live in California, Texas, or New York, you might be paying $0.40 or more during weekday afternoons. That’s the dirty secret of Time-of-Use (TOU) rates: the utility gives you a cheaper overnight rate, but punishes you hard between 4:00 PM and 9:00 PM. The good news? By shifting just four appliances to off-peak hours, you can cut that bill by 20% — roughly $35 to $60 a month for a typical family.

What Are Time-of-Use Electricity Rates, Exactly?

Time-of-use electricity rates are a pricing model where the cost per kilowatt-hour changes based on the time of day. Instead of paying one flat rate (say, $0.12/kWh all day), you get three distinct price windows:

• Off-peak (usually 10:00 PM – 6:00 AM): $0.08–$0.12/kWh
• Mid-peak (shoulder hours): $0.15–$0.22/kWh
• On-peak (typically 4:00 PM – 9:00 PM): $0.35–$0.55/kWh

These aren't theoretical numbers. In 2025, Pacific Gas & Electric (PG&E) in California charges $0.54/kWh on-peak for their E-TOU-C plan, while off-peak drops to $0.27/kWh. In Texas, CenterPoint customers on a TOU plan see on-peak rates around $0.32/kWh versus $0.10/kWh off-peak. Con Edison in New York hits $0.48/kWh on-peak and $0.14/kWh off-peak.

The core idea: you save money by moving your biggest energy loads — laundry, dishwashing, EV charging — into the cheap windows.

How to Save with TOU Rates: A Concrete Action Plan

You don't need to live like a vampire. You just need to shift the heavy hitters. Here’s the list of appliances that matter most, and the exact savings you can expect.

The "Shift This" Appliance List

| Appliance | Typical On-Peak Cost (per use) | Off-Peak Cost (per use) | Monthly Savings (shifted) | |-----------|-------------------------------|--------------------------|---------------------------| | Electric clothes dryer (1 load) | $1.20 | $0.40 | $24 (3 loads/week) | | Dishwasher (1 cycle) | $0.75 | $0.25 | $15 (5 cycles/week) | | Washing machine (hot wash) | $0.60 | $0.20 | $12 (4 loads/week) | | EV charging (40 kWh) | $16.00 | $5.60 | $41 (3 charges/week) | | Oven (1 hour at 350°F) | $0.50 | $0.17 | $10 (5 uses/week) |

Total potential monthly savings: $102 — that’s a real 20–25% reduction for many households.

Best Time to Run Dishwasher and Washing Machine

Set your dishwasher to start at 9:00 PM or later. Most modern dishwashers — Bosch 800 Series, GE Profile, KitchenAid — have a "delay start" button. Same for the washing machine. Run it before bed. If you have a Whirlpool or LG washer with a "load and go" feature, fill it in the morning and set the timer to finish at 6:00 AM.

Pro tip: Never run your dryer between 4:00 PM and 9:00 PM. That one change alone can save you $20–$30 per month.

The Smart Thermostat Connection

Your HVAC system is the biggest energy hog in your home — roughly 50% of your bill. With TOU rates, a smart thermostat is practically mandatory. In 2025, the Nest Learning Thermostat and the Ecobee Premium both offer "Time-of-Use" scheduling that automatically pre-cools or pre-heats your home before on-peak hours, then backs off during the expensive window.

For example: Set your Ecobee to cool your house to 72°F at 3:30 PM, then let it drift to 78°F during the 4:00–9:00 PM peak. That can save $0.15–$0.25 per hour of AC runtime — easily $40–$60 per month in summer. For a deeper dive on which thermostat fits your setup, check out our comparison of Nest vs. Ecobee: Smart Thermostats.

Automating Your Off-Peak Shift with Smart Plugs

You can remember to start the dishwasher at 9:00 PM for a week. By week three, you’ll forget. That’s where a simple smart plug with energy monitoring changes the game. The Emporia Smart Plug with Energy Monitoring (around $34.99) lets you set a schedule in the app: "Run the dehumidifier only from 10:00 PM to 6:00 AM." It also tracks real-time kWh usage, so you can see exactly how much you’re saving.

Plug in your portable heater, window AC unit, or coffee maker. Set the schedule once. Done. For a full list of which appliances to automate, read our guide on the Best Time to Run Appliances to Save Money.

How Do I Sign Up for TOU Rates?

This is the easiest part. In most utility territories, you can switch online in under five minutes.

• PG&E (California): Log into your account, go to "Rate Plans," and select E-TOU-C or E-TOU-D. No hardware changes needed.
• CenterPoint (Texas): If you have a retail provider like TXU Energy or Reliant, search their plan marketplace for "Time-of-Use" or "Free Nights" plans.
• Con Edison (New York): Go to "My Account" > "Rate Options" > "Time-of-Use." They’ll swap your meter remotely.

One warning: if you work from home and run your AC all afternoon, TOU might cost you more. Check your usage history first. Most utilities offer a 12-month bill comparison tool before you commit.

Frequently Asked Questions

Is time-of-use better than flat rates?

It depends on your lifestyle. If you’re home during peak hours (4:00–9:00 PM) running AC, oven, and laundry, a flat rate is cheaper. But if you can shift 70% or more of your heavy electricity use to off-peak, TOU will save you 15–25%. Run a free bill comparison on your utility’s website before switching.

Which appliances should I shift to off-peak?

Focus on the big four: electric clothes dryer, dishwasher, washing machine, and EV charger. These account for roughly 40% of a typical home’s energy use. After that, shift your oven use (use a slow cooker or air fryer during peak), dehumidifier, and pool pump. Skip shifting lights and TVs — they use too little juice to matter.

How do I sign up for TOU rates?

Log into your utility’s online portal, search for "Time-of-Use" or "Rate Options," and select the plan that matches your off-peak availability. Many utilities let you switch instantly. If you’re in a deregulated state like Texas, you’ll need to pick a retail electricity provider that offers TOU plans — compare rates at PowerToChoose.org.

Bottom Line

Time-of-use rates aren’t a gimmick. With on-peak prices hitting $0.54/kWh in 2025, you can cut your bill by 20% simply by running your dryer, dishwasher, and EV charger after 9:00 PM. Pair that with a smart thermostat and a $35 smart plug, and the savings become automatic. Start by checking your current utility’s TOU plan — you might be leaving $50–$100 on the table every month.