For families in the United States, on-peak hours can lead to increases in electricity bills; however, the need to ensure a stable energy supply is a top priority for the litany of energy utilities in the nation. Several underdeveloped nations across the world experience regular blackouts due to insufficient electricity supply, or when demand for energy during peak hours becomes too much for the grid to bear. One exceedingly large energy company in the US has made a few changes to its “Time of Use” rates in order to ensure the continued safe delivery of crucial electricity during all periods of the year.
Several countries have substantial blackouts due to surges in energy demand
Countries like South Africa have implemented “loadshedding” hours that see entire neighborhoods being plunged into darkness. The surge in electricity demand is simply too much for the nation’s grid to handle, leading the government to enforce stricter rules for peak-hour usage of high-energy appliances, and in some cases, residents turn to solar panels or gasoline generators to keep the lights on.
While the US has a relatively strong electricity grid, the increase in population that occurs every year means that over time, the grid is placed under increased pressure, which can lead to some serious problems for residents and energy companies alike. Most people have little understanding of the costs that energy companies incur to build new facilities and maintain a stable electricity supply to customers.
Officials have urged residents to make a mental note of the peak hours that strain the grid
Most people with even a modicum of sense understand their rights to electricity come with substantial responsibilities. We are all in this together, and considering your neighbor’s electricity needs is a responsibility that we all share. Peak hours of electricity usage are usually between 5 and 9 pm in the US, when most people are watching TV, cooking dinner, or setting the dishwasher to clean today’s dishes.
Xcel Energy customers in Colorado are set to see an increase in TOU rates
The company has noted that it has increased the TOU rates for its Colorado customers during peak hours, specifically between 5 and 9 pm. The increase is essential to ensuring Xcel can continue to supply a stable electricity supply to all Coloradans. An analysis by experts has noted that customers can actually save on their electricity bills by simply planning ahead and setting their day up to make use of the off-peak hours, which Xcel has noted is up to 60% cheaper than on-peak hours. Limitless power has not yet become a reality in the US, despite some advancements in recent times.
The company has also stated that the new plan enables it to implement only one on-peak period throughout the whole day, so ensure you adjust the thermostat during the on-peak period, and set your dishwasher to start after 9 pm. TOU rates have existed in Colorado since 2022, and Xcel is aiming to continue to serve its customers without any interruptions in electricity supply.
Under the new TOU program, customers can expect an increase in rates in December
Xcel has stated that summer is going to see the highest TOU rates, so expect a slight increase when summer rolls around. Xcel notes that the rest of the year falls under the winter allocation, when on-peak hours are not as strenuous on the regional grid. Crucial to note that the official statement from Xcel Energy details the expected increase in TOU rates this year.
Xcel is aiming to continue its safe and reliable supply of electricity for customers
The company has become the backbone of the electricity supply in Colorado, and to ensure it continues to supply safe and reliable electricity to its customers, the slight change in TOU rates was necessary. Imagine being in the middle of making dinner, and suddenly the lights and all your electrical appliances stop because of a blackout. That would drive most people up the wall. To prevent this reality from actually happening, Xcel needs to consider methods to build up a stable energy supply, hence the increase.
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