What are Peak vs Off-Peak Hours for Electricity?

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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Written by Graham Lumley

Graham Lumley is the Growth Product Manager at BKV Energy, a retail electricity provider in Texas' deregulated market, where he has worked since 2023. He analyzes customer usage and billing data, helps develop BKV's fixed-rate plans, and creates tools to simplify Texas electricity shopping. He has written over 200 articles on Texas electricity rates, delivery charges, plan types, energy generation, and more to help Texans understand their bills and pay less. With over 10 years of experience in consumer products, marketing, and energy, he explains the Texas electricity market in plain language.