The Maine Public Utilities Commission is contemplating the introduction of time-of-use (TOU) rates for electricity in an effort to encourage customers to use less power during peak times. These rates would make it cheaper for households and small businesses to consume electricity during off-peak hours when demand is lower.
Commission Chair Phil Bartlett emphasizes that shifting electricity use to off-peak periods could result in significant long-term savings and help avoid costly upgrades to the power grid. The move towards electrification in New England states, aimed at reducing fossil fuel consumption, is expected to increase demand on the grid, necessitating upgrades to transmission and distribution systems.
A report from ISO-New England suggests that shifting power use to off-peak times could save $10 billion in regional improvements. Implementing TOU rates could also help lower the standard offer price of electricity in Maine.
The commission’s inquiry, set to begin in early October, will consider factors such as whether the rates will be mandatory, peak and off-peak times, and an expected increase in winter demand for power. Despite the option for time-of-use rates already being available in Maine, only a small number of customers have signed up for them.
Central Maine Power, for instance, charges significantly lower rates for electricity delivered during off-peak hours compared to peak hours. The company expresses enthusiasm for working with stakeholders to evaluate how TOU rates can help achieve climate change goals and offer savings opportunities for customers.
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