Did you know that when you use electricity can be just as important as how much you use? If you’re a homeowner or business in Tennessee or Northern Alabama, understanding Time-of-Use (TOU) electricity rates could help you lower your monthly electric bills—without sacrificing comfort or productivity.

At AC/DC Electrical Services, we want to help you make smarter energy choices. Let’s break down how TOU rates work, and how you can benefit from using electricity at the right time.

What Are Time-of-Use (TOU) Rates?

Unlike standard flat rates, TOU rates vary depending on the time of day, day of the week, and season. Utility companies charge:

• Higher rates during peak hours (when demand is high)

• Lower rates during off-peak hours (when demand is low)

These peak times typically occur:

• Weekday mornings (6–10 AM) and evenings (4–9 PM)

• During hot summer afternoons when AC use spikes

• Less so on weekends and holidays

Your electric meter tracks usage in real time, and your monthly bill reflects the timing of your consumption.

How TOU Rates Affect Your Monthly Bill

If most of your electrical use happens during peak hours, you’ll pay more—even if your total usage isn’t extreme. Conversely, shifting some of your usage to off-peak periods can lead to significant savings.

For example:

• Running the dishwasher or laundry overnight can cost half as much

• Charging an EV or using power tools during off-peak hours avoids premium charges

• Pre-cooling your home in the morning reduces the need for heavy AC use in the afternoon

Simple Strategies to Lower Your Bill

Here’s how to take advantage of TOU rates:

1. Use Programmable or Smart Thermostats
Pre-cool or pre-heat your home before peak periods begin. A smart thermostat can automate this effortlessly.

2. Shift Major Appliances to Off-Peak Hours
Run dryers, dishwashers, and washing machines early morning or late evening. Most have delayed start settings.

3. Install Smart Plugs or Timers
Control lights, electronics, and small appliances to only run during low-rate periods.

4. Upgrade to Energy-Efficient Equipment
Energy Star-certified HVAC systems, water heaters, and lighting reduce total usage, lessening peak impact.

5. Review Your Utility’s TOU Schedule
Each provider has different peak hours—check your provider’s rate schedule and plan accordingly.

Are TOU Rates Available in Your Area?

In Tennessee and Alabama, several utility companies—like TVA, Huntsville Utilities, and LCUB—offer optional or default TOU plans. As smart meter technology expands, these rates are becoming more common.

Not sure if your meter supports TOU billing? AC/DC Electrical Services can help assess your setup and provide energy-saving recommendations tailored to your home or business.

Maximize Savings with Smarter Energy Use

If you’re looking to cut your electric bill without sacrificing comfort or performance, Time-of-Use planning is a great first step. Whether it’s upgrading your electrical panel, installing a smart thermostat, or reviewing your appliance usage, we can help.

Serving all of Middle Tennessee and Northern Alabama, AC/DC Electrical Services brings real solutions for real energy savings.

Contact us today to learn how strategic usage and electrical upgrades can make your power bills more predictable—and affordable.