EnerKnol’s Visual Primer – Time-Based Rates Pick Up Pace as Grid Modernization Efforts Rise

The move towards time-varying rates is on the rise as electric utilities seek rate designs that better align with the changing energy landscape. Utilities are increasingly experimenting with time-of-use rates (TOU) – which price electricity higher when peak demand drives up system costs –as customer-sited generation eats into revenues needed to maintain the grid and amid a widening disparity between average and peak demand.