Off Peak vs On Peak Energy

The real costs of the new Time-of-Day (TOD) Rates

Find out the difference between Peak and Off-Peak pricing, the benefits of using electricity during certain times and why the Time-of-Day Off-Peak Rate is the new standard rate as of 2024.

What are Peak, Off-Peak and Super Off-Peak hours?

The standard Time-of-Day Rate has Off-Peak hours that make up more than 88% of the hours in the year, while Peak hours only make up 12% or less throughout the year.
If you decide in the future to enroll in the Time-of-Day Super Off-Peak Rate, you have the additional benefit of Super Off-Peak hours.

  • Off-Peak hours: During Off-Peak hours, electricity costs are generally less than or roughly equal to the flat rate that customers are familiar with (ex. Rate 180).
  • Peak hours: This is the time when electricity is the most costly to use. To save the most money, try to reduce electricity use as much as possible during these hours (Monday to Friday, 3 p.m. to 7 p.m.) and shift energy use to times when electricity rates are lowest. Only weekdays have Peak hours.
  • Super Off-Peak hours: Only the Super Off-Peak Rate offers Super Off-Peak overnight hours from 10 p.m. to 6 a.m., seven days a week. These hours offer the lowest rates and are discounted 40% from flat rates.

Energy Grid Reliability
When energy consumption is more stable throughout the day, we are able to better control the entire system, including the cost of energy. The energy grid works best when energy supply matches energy use. When there is a mismatch, it can affect reliability. Time-of-Day Rates help even out power demand, reduce spikes in energy use and improve system reliability for everyone.

Environmental Benefits
When energy demand is more stable, PSEG Long Island is better able to source electricity from lower cost and often cleaner power sources. This energy is not just cheaper, it is also better for the environment. During times of peak energy use, the energy supply often comes from less environmentally friendly power plants used only during those times. Reducing peak energy use improves air quality and reduces reliance on energy sources that cost more and create more pollution.

Time-of-Day Has Been Proven to Work
Similar programs and studies across the US have shown that Time-of-Day Rates and shifting energy use to Off-Peak (cheaper) hours can result in lower energy bills. Over time, when more people use Time-of-Day, the cost of daytime energy use goes down for all users. All of this applies to Long Island and the Rockaways, too.