The Time-of-Use (TOU) & Residential Demand rate changes how your electric use is measured and billed by considering when you use electricity, not just how much.
Electricity used during “peak hours” (5 p.m.–11 p.m.) costs the utility more because it is more expensive to produce and deliver when many people are using power at the same time.
TOU rates discount usage during off-peak hours, when power costs are lower.
When our community uses less power during peak times, overall power costs go down, which helps keep rates lower for everyone.
Think of it like grocery shopping: if everyone shops at the same busy time, the store needs more staff at likely at higher-cost hours, which raises prices for everyone. When shoppers spread their trips throughout the day, the store can operate more efficiently and keep prices lower. Time-of-Use works the same way by encouraging customers to use some electricity outside the busiest hours so overall costs stay lower for everyone.
The new TOU & Residential Demand rates are proposed to begin no sooner than July 1, 2026.
These changes are separate from, but aligned with, a general rate increase scheduled for July 1 (Schedule B).
If our billing system is not ready to show TOU & Residential Demand details on customer bills by July 1, you will still see the Schedule B increase on your bill.
This rate was designed using a formal cost-of-service study to be revenue-neutral for the average residential customer compared to Schedule B.
The average Los Alamos County customer uses about 31% of their electricity during peak hours (5 p.m.–11 p.m.) and 69% during off-peak hours. The study concluded that the average household might have a peak demand for the month of 7 kilowatts during the highest one-hour period of usage. If so, the demand charge = $7 for the month.
If your usage is similar (about 31% peak, 69% off-peak), your total billed consumption should be about the same as it would have been under Schedule B.
If you use less than 31% of your electricity during peak hours, your total billed consumption will likely be lower than it would have been under Schedule B.
If you use more than 31% during peak hours, your total billed consumption may be higher—but you can lower it by shifting some usage to non-peak times under the discounted rates.
Many customers can lower the $7 demand charge by shifting usage so that multiple large appliances aren't being used at the same time during the same hour.
Not sure how your usage breaks down?
Log in to the Automated Metering Infrastructure (AMI) Portal to see when and how much electricity your household uses.
For tips to shift your usage and manage your bill under TOU, visit: Manage Bills with TOU.