Peak vs Off-Peak Electricity Usage: Texas Time-of-Use Guide

Time-of-use (TOU) electricity plans offer Texas residents the opportunity to significantly reduce their electricity costs by shifting energy consumption to off-peak hours when rates are lower. With proper planning and smart usage habits, households can save $200-500 annually compared to standard fixed-rate plans.

However, TOU plans can also result in higher bills if you're not strategic about when you use electricity. Understanding peak and off-peak periods, along with effective usage shifting strategies, is crucial for maximizing savings on these plans.

This comprehensive guide will explain how time-of-use pricing works in Texas, identify peak and off-peak periods, and provide actionable strategies for optimizing your electricity usage to achieve maximum savings.

Understanding Time-of-Use Electricity Pricing

Time-of-use plans charge different rates for electricity based on when you consume it:

Peak Hours: Higher rates during times of high electricity demand Off-Peak Hours: Lower rates during times of lower electricity demand Super Off-Peak Hours: Lowest rates during times of minimal electricity demand (some plans)

Example TOU Rate Structure:

Super Off-Peak (11 PM - 6 AM): $0.08/kWh
Off-Peak (6 AM - 2 PM & 8 PM - 11 PM): $0.11/kWh
Peak (2 PM - 8 PM): $0.22/kWh

TOU pricing reflects the real cost of electricity generation throughout the day:

Peak Demand Challenges:

• Power plants must increase output during high-demand periods
• Less efficient "peaker" plants come online during peak hours
• Grid stress increases maintenance and operational costs
• Wholesale electricity prices can be 10x higher during peak demand

Market Benefits:

• Encourages efficient use of existing infrastructure
• Reduces need for expensive peak-only power plants
• Improves overall grid reliability
• Provides cost savings for flexible consumers

Texas Peak and Off-Peak Hours Explained

Most TOU plans in Texas define peak hours as:

Summer Peak Hours (May - October):

• Weekdays: 2:00 PM - 8:00 PM
• Weekends: Often reduced or no peak pricing
• Holidays: Typically treated as weekends

Winter Peak Hours (November - April):

• Weekdays: 6:00 AM - 10:00 AM and 6:00 PM - 10:00 PM
• Some plans: 7:00 AM - 11:00 AM and 5:00 PM - 9:00 PM
• Weekends: Usually off-peak pricing

Summer Afternoon Peak (2 PM - 8 PM):

• Air conditioning demand reaches maximum
• Commercial and industrial usage remains high
• Solar production begins declining after 4 PM
• Grid stress typically peaks between 4 PM - 6 PM

Winter Morning/Evening Peaks:

• Morning peak: Business startup and heating demand
• Evening peak: Commercial demand + residential heating + lighting
• Shorter daylight hours increase lighting needs
• Heat pump efficiency decreases in cold weather

The Electric Reliability Council of Texas (ERCOT) tracks system-wide demand:

2024 Peak Demand Records:

• All-time peak: 85,508 MW (August 10, 2023, 5:00 PM)
• Typical summer peak: 75,000-80,000 MW
• Typical winter peak: 65,000-70,000 MW
• Off-peak minimum: 35,000-45,000 MW (overnight hours)

Seasonal Patterns:

• Summer peaks consistently occur between 4:00-6:00 PM
• Winter peaks split between morning (7:00-9:00 AM) and evening (6:00-8:00 PM)
• Weekend peaks are typically 10-15% lower than weekday peaks

Types of Time-of-Use Plans in Texas

Simple Structure:

• Peak hours: Higher rate
• Off-peak hours: Lower rate
• Easiest to understand and manage

Example Pricing:

Peak (2 PM - 8 PM weekdays): $0.18/kWh
Off-Peak (all other hours): $0.09/kWh

Best For:

• TOU beginners
• Households with flexible schedules
• Customers who can shift major usage

Enhanced Structure:

• Peak hours: Highest rate
• Off-peak hours: Medium rate
• Super off-peak hours: Lowest rate

Example Pricing:

Peak (2 PM - 8 PM weekdays): $0.22/kWh
Off-Peak (6 AM - 2 PM & 8 PM - 11 PM): $0.12/kWh
Super Off-Peak (11 PM - 6 AM): $0.07/kWh

Best For:

• Advanced energy managers
• Households with overnight charging needs (EVs, storage)
• Customers who can utilize late-night hours

Variable Structure:

• Different peak hours for summer vs. winter
• Rates may change seasonally
• More complex but potentially higher savings

Example Structure:

Summer Peak (May-Oct, 2 PM - 8 PM): $0.25/kWh
Winter Peak (Nov-Apr, 6 AM - 10 AM & 6 PM - 10 PM): $0.15/kWh
Off-Peak (all other hours): $0.09/kWh

Best For:

• Experienced TOU customers
• Households with seasonal usage patterns
• Customers comfortable with complex pricing

Special Event Structure:

• Standard TOU rates most of the time
• Extreme peak rates during high-demand events
• Advance notice provided (usually day-ahead)

Example Pricing:

Normal Peak: $0.18/kWh
Critical Peak (10-15 events per year): $0.75/kWh
Off-Peak: $0.09/kWh

Best For:

• Highly engaged customers
• Households that can quickly adjust usage
• Customers with smart home automation

Calculating TOU Savings Potential

To determine if TOU plans will save you money, analyze your current usage patterns:

Step 1: Gather Usage Data

• Collect hourly usage data from smart meter or utility app
• Analyze at least 3-6 months of data
• Identify seasonal patterns and trends

Step 2: Map Usage to TOU Periods

Current Bill Analysis:
Total kWh: 1,200
Current Rate: $0.12/kWh
Current Cost: $144

TOU Period Breakdown:
Peak Hours (2 PM - 8 PM): 300 kWh
Off-Peak Hours: 900 kWh

TOU Plan Calculation:
Peak Cost: 300 kWh × $0.18/kWh = $54
Off-Peak Cost: 900 kWh × $0.09/kWh = $81
Total TOU Cost: $135
Monthly Savings: $9

Example 1: Working Professional

• Current usage: 1,000 kWh/month
• Peak usage: 200 kWh (20%)
• Off-peak usage: 800 kWh (80%)

Standard Plan: 1,000 kWh × $0.12/kWh = $120
TOU Plan: (200 × $0.18) + (800 × $0.09) = $108
Monthly Savings: $12 (10% reduction)
Annual Savings: $144

Example 2: Retired Couple (High Peak Usage)

• Current usage: 1,200 kWh/month
• Peak usage: 600 kWh (50%)
• Off-peak usage: 600 kWh (50%)

Standard Plan: 1,200 kWh × $0.12/kWh = $144
TOU Plan: (600 × $0.18) + (600 × $0.09) = $162
Monthly Cost Increase: $18
Annual Cost Increase: $216

Example 3: Smart Home Optimizer

• Current usage: 1,400 kWh/month
• Peak usage: 150 kWh (11% - shifted most usage)
• Off-peak usage: 1,250 kWh (89%)

Standard Plan: 1,400 kWh × $0.12/kWh = $168
TOU Plan: (150 × $0.18) + (1,250 × $0.09) = $139.50
Monthly Savings: $28.50 (17% reduction)
Annual Savings: $342

Strategic Usage Shifting Techniques

Air Conditioning Optimization:

• Pre-cool home during off-peak hours (10 AM - 2 PM)
• Set higher temperatures during peak hours (2 PM - 8 PM)
• Use programmable thermostats for automatic adjustment
• Potential savings: $50-150/month in summer

Water Heater Management:

• Install timer to heat water during off-peak hours
• Insulate tank to maintain temperature during peak hours
• Consider tankless systems for on-demand efficiency
• Potential savings: $15-40/month

Pool Equipment Scheduling:

• Run pool pumps during off-peak hours only
• Use smart timers for automated control
• Consider variable-speed pumps for efficiency
• Potential savings: $25-75/month

Laundry and Dishwashing:

• Run full loads during off-peak hours
• Use cold water washing when possible
• Air dry clothes instead of using electric dryers during peak
• Potential savings: $10-25/month

Home Charging Optimization:

• Charge during super off-peak hours (11 PM - 6 AM)
• Use smart charging stations with time-of-use scheduling
• Take advantage of lowest overnight rates
• Potential savings: $30-80/month

Public Charging Considerations:

• Some public chargers also use TOU pricing
• Plan longer charges for off-peak periods
• Use workplace charging if available during off-peak hours

Automated Systems:

• Smart thermostats with TOU optimization
• Automated appliance scheduling
• Load management systems
• Real-time usage monitoring and alerts

Battery Storage Integration:

• Charge batteries during off-peak hours
• Discharge during peak hours to avoid high rates
• Solar+storage systems for maximum optimization
• Advanced time-of-use arbitrage

Peak Hour Demand Management

Common Peak Hour Activities:

• Air conditioning (60-70% of peak usage in summer)
• Cooking and kitchen appliances (10-15%)
• Lighting and electronics (10-15%)
• Water heating (5-10%)
• Other appliances (5-10%)

Cooling Efficiency:

• Raise thermostat 3-5°F during peak hours
• Use fans to improve comfort at higher temperatures
• Close blinds and curtains to block afternoon sun
• Avoid using ovens and other heat-generating appliances

Lighting Management:

• Switch to LED bulbs for lower energy consumption
• Use natural light when possible during peak hours
• Install motion sensors and timers
• Turn off unnecessary lights and electronics

Appliance Management:

• Delay use of high-energy appliances until off-peak
• Cook meals during non-peak hours when possible
• Use microwave instead of conventional oven
• Unplug devices not in use (phantom load reduction)

Thermal Mass Strategies:

• Pre-cool home to 68-70°F before peak hours
• Allow temperature to rise during peak (72-78°F)
• Use home's thermal mass to maintain comfort
• Return to normal settings after peak hours

Load Sequencing:

• Stagger appliance usage to avoid simultaneous operation
• Use smart outlets and timers for automatic control
• Prioritize essential vs. non-essential usage during peak
• Create peak hour usage schedules for family members

Seasonal Optimization Strategies

Pre-Peak Preparation (10 AM - 2 PM):

• Pre-cool home aggressively
• Run dishwasher and washing machine
• Charge electric vehicles and devices
• Complete cooking and food preparation

Peak Hour Survival (2 PM - 8 PM):

• Minimize air conditioning usage
• Avoid cooking with electric appliances
• Postpone laundry and dishwashing
• Use battery-powered devices when possible

Post-Peak Recovery (8 PM - 11 PM):

• Resume normal appliance usage
• Begin charging cycles for overnight completion
• Prepare for next day's peak period
• Review day's usage data

Morning Peak Strategy (6 AM - 10 AM):

• Use timers for water heater operation before peak
• Minimize heating system usage during peak
• Prepare breakfast using non-electric methods
• Schedule hot showers before or after peak

Evening Peak Strategy (6 PM - 10 PM):

• Reduce heating temperatures during peak
• Delay cooking until after peak hours
• Use space heaters only in occupied rooms
• Postpone electric dryer usage

Consistent Habits:

• Monitor usage patterns monthly
• Adjust strategies based on seasonal changes
• Stay informed about rate schedule updates
• Maintain efficient appliances and systems

Technology Tools for TOU Management

Available Information:

• Hourly usage data
• Peak vs. off-peak consumption breakdown
• Historical usage patterns
• Real-time usage monitoring (some systems)

Accessing Your Data:

• Utility company websites and mobile apps
• Third-party energy management platforms
• Smart home integration systems
• ElectricSave TX usage analysis tools

Programmable Thermostats:

• TOU-aware scheduling
• Remote control capabilities
• Learning algorithms for optimization
• Integration with utility peak alerts

Smart Appliances:

• Delayed start functions
• Load balancing capabilities
• Remote monitoring and control
• Energy usage reporting

Whole-Home Energy Management:

• Real-time usage monitoring
• Automated load shifting
• Peak demand alerts
• Cost optimization algorithms

Utility Apps:

• Real-time usage data
• Bill projection tools
• Peak hour notifications
• Usage comparison features

Third-Party Apps:

• OhmConnect (demand response program)
• Sense energy monitor
• Ecobee thermostat app
• Tesla Powerwall app (for battery storage)

Common TOU Plan Mistakes to Avoid

Problem: Signing up for TOU without understanding your usage Solution: Use at least 3 months of hourly data to analyze patterns Impact: Could result in higher bills instead of savings

Problem: Assuming you use little electricity during peak hours Solution: Carefully track air conditioning and other major loads Impact: Peak charges can quickly offset off-peak savings

Problem: Focusing only on weekday schedules Solution: Consider how weekend activities affect usage timing Impact: Weekend usage patterns significantly impact savings

Problem: Analyzing only one season's usage data Solution: Review full-year usage patterns before committing Impact: Summer cooling costs can eliminate winter savings

Problem: Relying on manual effort to shift usage daily Solution: Invest in smart thermostats and automated systems Impact: Manual management often fails, reducing savings potential

Financial Analysis: When TOU Makes Sense

Usage Characteristics:

• 25% or less usage during peak hours
• Flexible schedule for appliance usage
• Willingness to modify comfort preferences during peak
• Ability to invest in automation technology

Household Types:

• Working professionals away during peak hours
• Retirees with flexible schedules
• Tech-savvy households with smart home systems
• Electric vehicle owners who can charge overnight

Calculation Framework:

Current Annual Cost = Annual kWh × Current Rate
TOU Annual Cost = (Peak kWh × Peak Rate) + (Off-Peak kWh × Off-Peak Rate)
Annual Savings = Current Annual Cost - TOU Annual Cost
Payback Period = Smart Home Investment ÷ Annual Savings

Investment Considerations:

• Smart thermostat: $150-300
• Smart water heater controller: $100-200
• Whole-home energy management: $300-800
• Total typical investment: $500-1,200

Savings Threshold:

• Need minimum $200-300 annual savings to justify investment
• Payback period should be 3-5 years or less
• Consider non-financial benefits (comfort, convenience, environmental)

Provider Comparison for TOU Plans

Major Providers Offering TOU Plans:

• TXU Energy: Various TOU options
• Reliant Energy: Nights Free and TOU plans
• Direct Energy: Time-of-Use plans
• Green Mountain Energy: TOU with renewable options
• Champion Energy: Flexible TOU plans

Rate Structure Comparison:

• Peak vs. off-peak rate differential
• Weekend pricing policies
• Seasonal rate variations
• Super off-peak availability

Contract Terms:

• Contract length requirements
• Early termination fees
• Rate guarantee periods
• Automatic renewal policies

Additional Features:

• Smart thermostat rebates
• Usage monitoring tools
• Peak hour alerts
• Customer support quality

Implementation Timeline

Data Collection:

• Gather 6-12 months of usage data
• Identify major appliances and their usage patterns
• Analyze current bill structure and costs
• Research available TOU plans

Usage Pattern Analysis:

• Map current usage to TOU periods
• Calculate potential savings/costs
• Identify usage shifting opportunities
• Plan automation investments

Technology Installation:

• Install smart thermostats and timers
• Set up appliance scheduling systems
• Configure energy monitoring tools
• Test automated systems

Habit Development:

• Create peak hour usage guidelines
• Establish family schedules and protocols
• Practice manual usage shifting
• Develop backup plans for high-demand days

Provider Switch:

• Complete TOU plan enrollment
• Confirm rate schedule understanding
• Set up usage monitoring alerts
• Establish performance tracking system

Performance Monitoring:

• Track monthly savings/costs
• Adjust automation settings as needed
• Refine usage shifting strategies
• Adapt to seasonal changes

Continuous Improvement:

• Review usage patterns quarterly
• Update automation systems
• Consider additional efficiency investments
• Stay informed about new TOU options

Long-term Success Strategies

Summer Optimization:

• Focus primarily on cooling cost management
• Utilize pre-cooling strategies effectively
• Monitor for peak demand emergency events
• Adjust comfort settings gradually

Winter Optimization:

• Manage heating costs during dual peak periods
• Optimize water heating schedules
• Take advantage of mild weather for reduced heating
• Plan for extreme weather events

Emerging Technologies:

• Home battery storage systems
• Advanced heat pump technology
• Smart water heaters with grid integration
• Electric vehicle-to-home systems

Future Opportunities:

• Vehicle-to-grid programs
• Demand response participation
• Community energy storage programs
• Advanced rate plan options

Conclusion: Mastering Time-of-Use Success

Time-of-use electricity plans offer significant savings potential for Texas residents willing to modify their energy consumption patterns. Success requires understanding peak and off-peak periods, strategically shifting usage, and leveraging technology for automation and optimization.

The key principles for TOU success are:

1. Thorough Analysis: Use actual usage data to evaluate TOU potential before switching
2. Strategic Investment: Invest in smart home technology to automate usage shifting
3. Consistent Management: Maintain peak-hour discipline even when inconvenient
4. Continuous Optimization: Regularly review and adjust strategies based on performance
5. Seasonal Adaptation: Modify approaches based on weather and usage pattern changes

For households that can successfully shift 75% or more of their usage to off-peak hours, TOU plans typically provide savings of $200-500 annually. Combined with energy efficiency improvements and smart home automation, these savings can be even greater while maintaining comfort and convenience.

Remember that TOU plans require active management and lifestyle adjustments. They're not suitable for every household, but for those willing to engage with their energy usage, they offer a path to significant cost savings and more efficient use of the Texas electricity grid.

Ready to explore time-of-use options for your home? Use our bill analysis tool to analyze your current usage patterns and get personalized recommendations for TOU plans available in your area. Our AI-powered system can identify optimal usage shifting opportunities and calculate potential savings based on your specific consumption patterns.

Take control of your electricity costs by working with the natural rhythms of the Texas electricity grid. Time-of-use pricing rewards smart energy management—and the savings can be substantial for households ready to optimize their usage patterns.

---

Time-of-use rates and peak hour definitions vary by provider and may change seasonally. This information was last updated in July 2025. For current TOU plan options and personalized analysis based on your specific usage patterns, use our bill scanner tool.