Time-of-use or flat rate? When your electric plan costs you more

Time-of-use plans charge more for electricity during peak hours, often late afternoon into evening, and less the rest of the day. They save money for households that can shift laundry, dishwashers, and cooling out of the peak. For a home that runs the air conditioner hard from 3pm to 8pm, they can cost more than a flat rate.

Read the rate comparison

Many utilities, especially in the Southwest, print a comparison box: what this month's usage would have cost on another plan. If the other plan is cheaper, that difference is real money, but only for months like this one.

On the Standard Residential (flat) plan, they would have been $236.83.

Do not annualize a summer bill blindly

A July bill in Phoenix is not a January bill. When the gap is seasonal, Billdial counts it only for the high-use months, and says so in the reasoning. On our sample, a $42.61 monthly gap counts for six months, not twelve: about $256 a year.

The ask

Ask your utility to compare your last 12 months on both plans, and to switch you if the other plan is cheaper overall. Most let you change once a year at no charge. If your bill also carries a late fee and your history is otherwise on time, ask for a one-time courtesy waiver on the same call.