Xcel Energy’s new Time of Use rates give customers a new opportunity to save

NEWS RELEASE
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Xcel Energy’s residential customers in Colorado will soon have a new way to control their electric bill and get better insight into their energy use, as they switch to Time of Use rates. All Colorado customers will move onto the new plan over the next three years, starting with about 310,000 customers this March.

“We’re excited to give customers new ways to manage their energy bills while helping Colorado build a clean energy future,” said Alice Jackson, president of Xcel Energy – Colorado. “Customers will have new tools to better understand their energy use, and with Time of Use rates, they can save on their bill by taking advantage of lower rates in off-peak times.”

What Are Time of Use Rates?

With Time of Use rates, the price customers pay is based on when they use electricity, in addition to how much they use. This gives them the opportunity to manage their bills by using electricity when it costs less. There are three time periods:

• On-Peak Hours: Weekdays between 3 p.m. and 7 p.m., excluding holidays.
• Mid-Peak Hours: Weekdays between 1 p.m. and 3 p.m., excluding holidays.
• Off-Peak Hours: Daily before 1 p.m. and after 7 p.m. plus weekends and holidays. Off-peak hours provide the greatest cost savings opportunity.

The more customers can shift their energy use to lower-priced periods, the more they can save. For example, they will benefit the most when they choose to use their major appliances, such as washers, dryers and dishwashers, in the morning, later in the evening and overnight.

In addition to creating a new way for customers to save, Time of Use rates will help customers benefit even more from renewable energy, because wind energy is more abundant later in the evening and overnight. Shifting energy use to off-peak times also helps avoid the need to build new power plants by lowering energy use at peak times on the grid, helping keep costs down for everyone.

New Tools and Tips for Saving

To help customers save on the new rate, Xcel Energy has new tools to help them understand their energy use. They can use the “My Energy” button in My Account to see their energy in 15-minute increments. They’ll also find personalized tips to save energy and money.

Other tips to help customers save on Time of Use rates include:

• Avoid using major electric appliances like dishwashers, air conditioners, clothes washers, and clothes dryers during on-peak times (weekdays between 3 p.m. and 7 p.m., excluding holidays).
• Install a programmable or smart thermostat to automatically control your air conditioner and furnace, and program it to heat up or cool down your home before peak hours, then reduce heating and cooling use between 3 p.m. and 7 p.m. on weekdays.
• Routinely run a full dishwasher at night during off-peak hours.
• Do laundry on the weekend, or before 3 p.m. and after 7 p.m. on weekdays.
• Charge electric vehicles overnight.

Before launching the new rates, Xcel Energy conducted Time of Use pilot programs with customers in Colorado, and in those pilots, most customers saw their bills decrease slightly or stay about the same on Time of Use rates.

Xcel Energy will be sharing more information about Time of Use rates with customers who will start on the rate in March through mail and email. Customers can also find more information at xcelenergy.com/TOU and under our Frequently Asked Questions.

Time of Use Rate Rollout Over the Next Three Years

All Colorado customers will transition to Time of Use rates in the next three years, after they’ve received a new electric meter from the company, whether it’s a smart meter or a non-communicating meter, for customers who opt out of receiving a smart meter. Approximately 310,000 new meters were installed in Colorado by the end of 2021.

The new meters read energy use in 15-minute increments, giving customers and the company near real-time information. Customers who choose not to receive a smart meter will get a non-communicating meter that will not send the information to the company. A meter reader will be sent to manually read the meter, which will lead to a monthly meter reading fee.

Once customers have their new meter, they will transition to the Time of Use rate several months later, with all customers expected to be on the rate by 2025.

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