How do these plans work?

TOU plans take into account the time of day you are using energy, which allows you two ways to save – by shifting your electricity use to lower cost hours of the day or by reducing your overall usage. During the on-peak hours of 4 p.m. to 9 p.m.increased demand on the electric grid means a higher cost to produce and deliver electricity. So by shifting your use to off-peak hours, when there is less demand, the cost of electricity is less.