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What Are Peak vs Off-Peak Hours for Electricity?
3 minute read • Last update September 2024
The difference between peak and off-peak hours
Peak hours occur during the time of day when demand for electricity is the highest. Off-peak hours describe the rest of the time when businesses and residential customers use less electricity.
During peak hours, increased demand for energy drives the price of wholesale electricity higher. The opposite plays out during off-peak hours, meaning wholesale electricity prices fall along with decreasing demand.
When are peak hours for electricity in Texas?
According to the Energy Information Administration, peak hours, when electricity demand is highest, vary based on the time of day, day of the week, and the season.
Summer peak hours
In the summer, peak hours occur between 3:00PM-7:00PM. These are the hottest hours of the day when air conditioners work overtime to keep businesses and homes cool. Demand is exacerbated when people return home from work in the evening.
- Time: 3:00PM-7:00PM
- Months: June to September
Spring and fall peak hours
In the spring and fall, when weather is milder, peak hours there is a smaller peak in the morning between 6:00AM-9:00AM and a larger afternoon peak between 4:00PM-8:00PM. The morning peak occurs when everyone is waking to get ready for work or school. The afternoon peak occurs when folks return home form work, but is usually less intense than peak hours during the summer.
- Time: 6:00AM-9:00AM and 4:00PM-8:00PM
- Months: March to May, and October to November
Winter peak hours
In the winter, peak hours are no longer tied to the use of air conditioning, but the use of heating. There can be two peaks during the winter. Between 6:00AM-9:00AM when people wake up and turn the heat on because winter mornings are colder. Then, again in the evening from 5:00PM-9:00PM when people return from work. Winter evenings are dark and cold, so more people are turning up the heat and turning on more lights.
- Time: 6:00AM-9:00AM
- Months: December to February
Weekends vs weekdays
During the week, peak hours are often more pronounced because society follows a routine of waking up, going to work or school, and returning home in the afternoon or early evening. Over the weekend, usage may be lower or more spread out.
How peak hours impact your electricity bill
Peak hours can significantly impact your electricity bill, depending on the type of plan you’ve selected. Time-of-use and variable plans are subject to the most impact from peak hours, while fixed-rate plans feel the least influence.
Time-of-use plans
Time-of-use plans offer different electricity rates throughout the day, typically with higher prices per kWh during peak hours and vice versa. That means, the more electricity you use during peak hours, the higher your bill will be.
Variable plans
On a variable pricing plan, your electricity rate can change month-to-month. During the summer, when peaks are the highest, variable rates can become rather unaffordable.
Fixed-rate plans
On a fixed-rate plan, you are locked into the same rate for the duration of your contract, meaning your price per kWh does not change during peak hours. However, it’s still important to be wary of your electricity consumption, especially during peak hours in the summer. If you set your thermostat to a low temperature, then you can expect higher bills.
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