The California Public Utilities Commission (CPUC) directed electric utilities to transition all customers to Time-of-Use rates where peak pricing occurs from 4:00 p.m. to 9:00 p.m. every day (E-TOU-C for residential customers). This is to encourage energy use during times of the day that support a cleaner and more reliable energy grid.
Before the transition, most San José residents are on a tiered rate plan called E-1, where users are charged based on the amount of energy used and prices increase with higher energy use (tiers). Under E-TOU-C pricing, your rate will instead vary based on the time of day you use electricity.
Renewable energy on the grid is higher during the day with abundant solar production, and at night with wind and hydropower. However, in the evening between the 4:00 p.m. to 9:00 p.m. “peak”, the sun sets and less renewable energy is available to meet the evening energy demand. Maximizing renewable energy usage during “off peak” hours helps reduce greenhouse gas emissions and improve air quality for a cleaner and healthier California.
Save on Your Electric BillMost customers will save on a TOU rate plan without changing any of their habits. However, further shifting your energy use to before 4:00 p.m. and after 9:00 p.m., when the electric grid is the cleanest and cheapest, can help reduce your energy bill even more.
Use less energy during peak periods by:
Customers were offered one year of free bill protection when they were transferred over to E-TOU-C rates in June 2021. Customers will receive a credit from SJCE and PG&E if their first year of TOU service ended up being more expensive than their previous rate plan. Bill protection was offered so customers could try TOU risk-free, which helps make the California grid cleaner and more reliable. Bill protection will end in June 2022. You will see this credit on your July or August bill, depending on your billing cycle.
If you did not save money on E-TOU-C, consider shifting your energy use to off peak hours to find savings. If that isn’t feasible for your household, then you can run a personalized rate comparison in your PG&E account or by calling PG&E at 1-866-743-7945. You can change your rate plan up to two times per year.
Learn more about the June 2021 transition to TOU rates by viewing our presentation slides or watching our virtual presentation:
What is a time-of-use (TOU) rate plan?
Time-of-use (TOU) rate plans have varying prices for electricity throughout the day based on the time energy is being used. Electricity use is generally the highest during the evening hours also known as “the peak period” or 4:00 p.m. to 9:00 p.m. This is the most expensive time for utilities to procure electricity. The goal of TOU rate plans is to better reflect the true cost of procuring energy through price signals to the customer and to incentivize customers to use less energy during high-demand, peak hours.
In 2015, the California Public Utilities Commission (CPUC) adopted a series of changes to residential rate structures to align rates with the actual cost of providing electricity service. One of these changes requires investor-owned utilities like PG&E to automatically enroll (“transition”) most of its residential customers in a TOU rate by a certain date.
How will this impact my bill? Will I be able to save money on a TOU rate plan?
If you can shift some of your energy use to take advantage of the lower-priced, off-peak time periods (before 4 p.m. and after 9 p.m.), you may be able to lower your overall electricity costs. For example, running the dishwasher during off-peak periods instead of on-peak periods is an example of shifting usage to lower electricity costs.
Do I have to keep the TOU rate plan? I saw something about bill protection. How will that work?
You may opt out and return to your previous tiered rate plan or select a different TOU rate plan at any time.
Bill protection was offered to customers who were automatically transitioned over to TOU in 2021. This is no longer available for new customers or those who voluntarily choose a TOU rate plan. Bill protection was offered as a customer benefit during the transition so customers could try this new rate plan risk-free. This encouraged more customers to try out TOU which helps make the California grid cleaner and more reliable.
Were CARE and FERA customers included in the June 2021 transition?
CARE and FERA customers who are enrolled in the standard tiered rate plan (E-1) were transitioned.
Were electric vehicle (EV) or Net Energy Metering (NEM) customers included in the transition?
EV customers who are enrolled in the standard tiered rate plan (E-1) were transitioned to a TOU rate plan, unless those customers affirmatively chose to remain on the tiered rate plan. EV customers who were already on a TOU rate plan such as EV-2A did not experience any changes.
Only NEM 1.0 customers who were enrolled in the tiered rate plan (E-1) were transitioned to the TOU rate plan, based on the date of their annual NEM true-up between April 2021 and March 2022, unless those customers affirmatively chose to remain on the Tiered rate plan. NEM 2.0 customers were already enrolled in a TOU rate plan and did not experience any changes.
Will this affect my status as an SJCE customer?
No. You are still an SJCE customer after the automatic transition to TOU rates.
In addition, declining the transition to remain on your current rate plan or selecting a different TOU rate plan does not affect your status as an SJCE customer.
If I move to a new address, will I still receive bill protection?
Bill protection will conclude if you change your rate plan or stop/transfer service at your residence. Bill protection will be provided for the period of time you have been enrolled in E-TOU-C rate plan for up to 12 months. Read more about bill protection eligibility on PG&E’s website.
Were apartment complexes and mobilehome parks included in the transition?
Apartment and mobilehome units that are individually metered with their own service accounts were included in the TOU transition. Properties with service on a master meter were not eligible for the transition.
Who was not transitioned?
Several groups were excluded from SJCE’s and PG&E’s TOU transition in San José, including:
What is the “peak” demand or “peak” hours period?
According to the California Public Utilities Commission (CPUC), the California Energy Commission (CEC) and California Independent System Operator (CAISO), the state’s electricity grid reaches its peak level of usage between the late afternoon and early evening (4:00 p.m. to –9:00 p.m.). During this time period, electricity produced by renewable resources is less available to meet the evening demand.
All Californians are being encouraged to conserve electricity and manage energy use in their homes during this time.
The California Public Utilities Commission (CPUC) is only requiring investor-owned utilities, like PG&E, to transition customers to TOU rates. Why are SJCE and other Community Choice Aggregators (CCA) transitioning their customers to TOU rates?
PG&E continues to provide electric delivery for all CCA customers. To minimize customer confusion and incentivize energy conservation during the most expensive and most polluting hours of the day, CCAs including SJCE transitioned their customers to TOU rates for the generation portion of their bill. This resulted in both generation and delivery being charged at a TOU rate with the same pricing signals.
Most SJCE customers were transitioned in June 2021.
Why is the state of California making energy more expensive when I need it the most?
The new pricing plan is part of a California Public Utilities Commission (CPUC) effort to support the state’s ongoing shift to clean energy. TOU rate plans support a cleaner and more reliable power grid for everyone.
The state’s electrical grid is increasingly powered by clean, renewable sources of energy, when the sun is out and the wind is blowing. The challenge is in the late afternoon and evening, when demand for energy peaks. At this time, electricity produced by renewable resources is less available to meet the evening demand.
Californians will be doing their part to help the state reach its clean energy goals and preserve the planet for future generations. Ratepayers can also save money by shifting energy use to off-peak hours.
Does TOU impact my gas bill as well?
No. TOU affects electricity pricing only.
Are SJCE customers protected from the surge in bills experienced by Texas electricity customers during recent winter storms?
SJCE electricity rates are based on fixed rate plans, not wholesale energy costs. In Texas, some customers choose to pay wholesale prices for their power, which can be cheaper than paying fixed rates during good weather but can spike when there’s high demand for electricity. This is what occurred in Texas during the winter storms in early 2021.
Customers on TOU rates will not experience a surge in pricing due to poor weather or spikes in demand because our rates are fixed at predetermined amounts. While prices will vary between peak and nonpeak times, they will not pass the predetermined amount. Visit our Residential Rates page for a list of SJCE’s most current electricity rates.
