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Most modern facilities already have interval metering (smart meters) capable of tracking usage by time period. Your utility likely installed these in recent years. If you don't have interval metering, your supplier can request installation, usually at no cost (the supplier or utility covers it as part of enrollment).
Time-of-Use Rates in Ohio: Save Money by Shifting Your Energy Usage
Time-of-use (TOU) rates charge different prices for electricity depending on when you use it. Peak hours (typically afternoon/evening) cost more; off-peak hours (early morning, late night) cost less. For businesses that can shift energy consumption away from peak periods, TOU plans can reduce electricity bills by 10-25% or more.
What Are Ohio's Time-of-Use Rates & Why Should Your Business Care?
Ohio's wholesale electricity market prices vary hourly based on supply and demand. During peak demand periods, prices surge; during off-peak times, they fall. Most businesses pay flat rates regardless of when they use power, effectively paying a premium rate during cheap hours and missing savings during expensive ones.
Time-of-use rates expose the true market prices by time period. If your business can operate flexibly—running energy-intensive equipment during cheap hours, deferring non-urgent tasks to peak periods, or managing HVAC strategically—a TOU plan can create substantial savings.
Who Benefits Most From TOU Rates
- Manufacturing: Can schedule production runs during off-peak hours
- Refrigerated logistics: Can pre-cool during cheap hours, manage thermal mass smartly
- Data centers: Can shift batch processing jobs to off-peak periods
- Water pumping/treatment: Can shift pumping to late-night low-cost periods
- Retail/hospitality: Can adjust HVAC, lighting, and equipment usage by time
- Electric vehicle charging: Can charge during off-peak night hours
If your business has any operational flexibility, TOU rates are worth evaluating. Even modest shifts (reducing peak usage by 15-20%) create measurable savings.
When is Electricity Cheapest in Ohio? A Breakdown of Peak & Off-Peak Hours
Peak and off-peak hours vary by utility and season. PJM Interconnection, which manages wholesale markets across Ohio and surrounding states, defines peak periods based on when demand typically spikes.
| Season | Peak Hours | Off-Peak Hours | Price Differential |
|---|---|---|---|
| Summer (June-August) | 2 PM - 6 PM weekdays | 9 PM - 7 AM daily, all weekend | Peak +40-60% vs off-peak |
| Winter (Dec-Feb) | 6 AM - 10 AM, 5 PM - 9 PM weekdays | 11 PM - 5 AM, weekends | Peak +30-50% vs off-peak |
| Spring/Fall (March-May, Sept-Nov) | 7 AM - 11 AM, 6 PM - 10 PM weekdays | 11 PM - 6 AM, weekends | Peak +20-40% vs off-peak |
These are typical patterns. Your specific utility (AEP, Duke, FirstEnergy) or supplier may have slightly different definitions. Ask your energy provider for your specific TOU schedule before committing.
Real-World Example: Summer Peak Differential
If off-peak electricity costs $0.05/kWh and peak costs $0.075/kWh (50% premium), every kWh you shift from peak to off-peak saves $0.025/kWh or 33%.
A manufacturing plant using 500 kWh during 3 PM peak hours could shift that to 11 PM, saving 500 × $0.025 = $12.50 daily, or $3,750 during summer if they achieve full shift. Even partial shifts (shifting 60% of peak usage) generate proportional savings.
3 Actionable Strategies to Shift Usage and Drastically Cut Your Ohio Energy Costs
Time-of-use savings aren't automatic—they require deliberate operational changes. Here are proven strategies businesses implement successfully.
Strategy 1: Shift Thermostat and HVAC Management
Pre-cool your facility during off-peak hours so it stays comfortable during peak periods with minimal HVAC operation. A smart thermostat (or manual adjustment) that raises temperatures 2-3°F during peak hours reduces HVAC demand without discomfort. Cost: $0-2,000. Savings: 10-15% of cooling costs.
Strategy 2: Stagger Operations and Equipment Use
Don't run heavy equipment during peak hours. Schedule industrial equipment, water pumping, washing machines, compressors, and other flexible loads during off-peak periods. Manufacturing plants can run non-urgent production overnight. Cost: Minimal (operational coordination). Savings: 5-25% depending on flexibility.
Strategy 3: Invest in Thermal Storage
Ice storage tanks, hot water tanks, and other thermal storage allow you to store energy (as cold or heat) during cheap off-peak hours and use it during expensive peak hours. Cost: $5,000-50,000 depending on scale. Savings: Payback in 3-7 years for many applications.
Strategy 4: Optimize EV Charging Times
If your business operates electric vehicles, charge them exclusively during off-peak hours. Overnight charging costs 30-50% less than daytime charging. Smart charging controllers make this automatic. Cost: $500-2,000. Savings: 30-50% of charging costs.
Strategy 5: Implement Demand Response Programs
PJM and utilities offer demand response programs that pay businesses to reduce electricity during peak periods. You get paid to reduce usage, then receive lower rates from a TOU plan. This creates a "dual reward" scenario.
Strategy 6: Combine with Energy Efficiency
TOU savings + efficiency savings compound. A facility that both adopts TOU rates AND implements LED lighting, HVAC optimization, and process improvements sees 20-35% total electricity bill reductions compared to baseline.
Is a TOU Plan Right for You? How to Choose the Best Ohio Energy Rate
TOU plans aren't ideal for all businesses. Evaluate whether a TOU plan makes sense for your specific situation.
| Business Type | Operational Flexibility | TOU Plan Fit | Potential Savings |
|---|---|---|---|
| 24/7 Operations (Hotels, hospitals, data centers with fixed loads) | Low | Poor fit | 2-5% |
| Standard Office (9-5 operations, standard AC needs) | Moderate | Fair fit (with optimization) | 5-12% |
| Manufacturing (adjustable production scheduling) | High | Excellent fit | 15-30% |
| Refrigerated Warehouse (thermal storage potential) | High | Excellent fit | 20-35% |
| Retail with Smart HVAC (flexible heating/cooling) | Moderate-High | Good fit | 10-20% |
Evaluation Checklist: Is TOU Right for Your Business?
- ☐ Can you reduce peak-hour electricity consumption by at least 10%?
- ☐ Do you have flexibility in when you run equipment or operate processes?
- ☐ Is your facility open during off-peak hours (nights/weekends) when you could shift loads?
- ☐ Do you operate HVAC systems that could be optimized by time period?
- ☐ Would your business maintain customer service and operations quality while shifting usage?
- ☐ Are you willing to invest in smart controls or monitoring to enable shifts?
If you answered "yes" to 3+ questions, a TOU plan likely generates significant savings.
Ask your energy supplier for a TOU rate comparison. They should model both your flat-rate and TOU costs, showing the projected savings for your specific business profile. Use this data to make an informed decision.
Common Questions About Time-of-Use Rates in Ohio
Yes. Many businesses participate in both. TOU rates incentivize you to reduce peak usage; demand response programs pay you extra when you do reduce usage during grid emergency periods. Together, they create layered savings. Ask your supplier and utility about stackable programs.
TOU rates may not be optimal for businesses with fixed peak-hour operations. However, even modest shifts create value. If you can shift just 20% of peak usage to off-peak, savings typically exceed 5%. Weigh this against administrative complexity before deciding against TOU rates.
No penalties, just higher per-unit costs during peak hours. You're charged more per kWh, but there's no limit or surcharge beyond that. Use as much as you need; you simply pay premium prices for peak-hour usage.
Yes. Most TOU contracts offer the ability to return to standard flat-rate plans at contract renewal. Some suppliers allow switches mid-contract (possibly with early termination fees). Review contract terms before signing to understand your flexibility.
Ready to Explore Time-of-Use Options?
Get quotes from suppliers offering TOU rates in your area. See how much you could save with a plan that matches your operational flexibility. Many suppliers provide modeling showing projected savings vs. flat rates.
Compare rates and see if TOU could work for your business.