‘Something needs to be done’: Southern Californians cry for help as electric bills skyrocket — here’s why some feel they’re being penalized for simply using electricity when they need it

Understanding TOU pricing and how it may impact your electricity bill

TOU is an electricity pricing structure in which the cost varies based on the time of day. Electricity used in off-peak hours is cheaper, while electricity used during peak hours costs more. Large energy providers in California began switching customers to TOU pricing in 2019 to support the state’s ongoing switch to cleaner energy. SCE started switching customers, like Melissa Avalos and Sarah Clifford, in 2019.

TOU pricing might seem unfair, but there’s a good reason for the switch. During the day, when the sun is shining and the wind is blowing, energy in California is mostly produced by solar and wind. But during the evening peak hours, between 4 p.m. and 9 p.m., electricity is more likely to be produced by carbon-intensive energy sources that emit greenhouse gasses.

The switch to TOU pricing incentivizes residents to use electricity when it’s more likely to come from cleaner energy sources. However, the hefty electricity bills place a large burden on low-income and fixed-income households.

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How to reduce your electricity costs under TOU pricing

If you’re a resident of any of the states that use TOU pricing, including California, Arizona, Illinois, Maryland, Mississippi, and New York, you can take steps to reduce your electricity costs.

SCE offers customers three TOU rate plans, allowing them to choose when they are most likely to use electricity. Sixty days before customers are enrolled in TOU pricing, they receive a letter with a personalized comparison of the different rates plans, allowing them to select the plan that works best for them. If your current bill is high, consider comparing the different plans your energy company offers to see if a switch could save you money.

If your appliances have a delayed start feature, take advantage of it by scheduling them to run during off-peak hours, typically early in the morning or late at night when electricity rates are lower. Similarly, try to charge electronics like laptops and other battery-operated devices during these cheaper times.

A smart thermostat can also help you save by pre-cooling your home before peak hours begin and then raising the temperature slightly during peak hours to reduce energy usage. And consider unplugging appliances and electronic devices when not in use, as they can still draw power even when turned off.

If careful usage isn't enough to manage your electricity bill, financial assistance programs are available. The California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) offer residents discounts between 35% and 18%, depending on their household income. And if you live outside of California, your state may offer a similar program.