Most of us tend to use more electricity in the summer months when it’s hot and we need our air conditioners on full blast. It pays to understand how your electric company charges you, though. Many of them charge more per kilowatt depending on how and when you use electricity.


Arizona’s power company, Arizona Public Service, recently made headlines for their surge pricing, but they’re not alone. Many electric companies charge more during peak hours. Part of APS’ demand pricing is based on the customer’s highest one hour of energy used during on-peak hours, which has a lot of customers upset. Other utility providers use different methods. In Los Angeles, for example, you’re charged a higher rate per kilowatt once you reach a certain usage threshold. They call this tiered pricing (and I broke down the details of my own electric bill here).


We’ve touched on this before, and there are a few solutions to combat this kind of pricing. You could run your appliances at night, during cheaper, off-peak hours, for instance. Of course, it’s also best to make sure your home is as energy-efficient as possible.

Overall, though, it helps to simply be aware of your electric company’s pricing model, depending on where you live. The difference in pricing during peak hours might be pennies, but when we’re talking kilowatts, those pennies add up. For more detail, head to the link below.

Uber But For Energy: Utility Surge Pricing Threatens Summer Cool | NPR

Photo by larsjuh .