Otis Singleton
Seattle residents pay an average of $173 per month for electricity, which is 26% lower than the national average. The average electricity rate in Seattle is 13 ¢/kWh, which is 35% lower than the national average. The cheapest time of day to use electricity in Seattle is during off-peak hours, which are typically from midnight to 6 a.m. every day. Peak hours, when electricity is most expensive, are typically from 5 p.m. to 9 p.m. on weekdays, while mid-peak hours are from 6 a.m. to 5 p.m. and 9 p.m. to midnight on weekdays, and all day on weekends and holidays. Seattle City Light is introducing a Time of Use (TOU) rate in fall 2025, which will allow customers to be billed based on when they use electricity, encouraging them to take advantage of lower rates during off-peak hours.
| Characteristics | Values |
|---|---|
| Time of cheapest electricity | Midnight to 6 a.m. |
| Time of highest electricity cost | 5 p.m. to 9 p.m. |
| Time of mid-peak electricity cost | 6 a.m. to 5 p.m. and 9 p.m. to midnight |
| Average electricity rate in Seattle | 13 ¢/kWh |
| Average monthly electric bill in Seattle | $173/month |
| Average electricity consumption in Seattle | 1,291.00 kWh/month |
| Advanced meter requirement | Yes |
| Time of Use rate availability | Fall 2025 |
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What You'll Learn
Seattle's electricity rates are set to change in fall 2025
Seattle's electricity rates are set to change in 2025, with a new time-based pricing structure that will incentivize residents to use less electricity during peak hours. The new rates will vary throughout the day, with three tiers: peak, mid-peak, and off-peak. Peak hours, when electricity will be most expensive, are from 5 p.m. to 9 p.m., Monday through Saturday, except on city-observed holidays. Mid-peak hours will be from 6 a.m. to 5 p.m. and 9 p.m. to midnight, Monday through Saturday, with mid-peak pricing all day on Sundays and city-observed holidays. Off-peak hours, when electricity costs will be the lowest, will be from midnight to 6 a.m. every day.
The new time-of-use (TOU) rate is expected to be formally adopted by the Seattle City Council in November 2025, as part of the City's 2025-2026 budget. The TOU rate will give residents more control over their energy costs, allowing them to save money by reducing their electricity use during peak hours and taking advantage of off-peak times when electricity is cheaper. The TOU rate is optional, and residents can choose the rate structure that best fits their needs.
The rate changes are designed to help Seattle City Light, the city's public, not-for-profit electric utility, maintain safe, reliable, and environmentally responsible energy services. The increased rates will support investments in new resources and improvements to transmission and distribution systems to meet future demand. While rates are increasing, City Light's rates remain some of the lowest in the nation, and they continue to offer stable, predictable rates.
To prepare for the new TOU rate, the second-block residential rate is being phased out. This means that the per-kilowatt-hour energy price will no longer increase when a household uses more electricity. Additionally, City Light is developing tools to help residents understand their energy use and explore rate options. Residents can sign up for email updates on the TOU rate as the launch approaches.
With the new rates, residential customers can expect an average monthly increase of around $4, while those enrolled in the Utility Discount Program will see an increase of around $2 per month. Business customers can anticipate rate increases between 4% and 7%, depending on usage. Seattle's electricity rates are already relatively low, ranging from 13 to 14 cents per kilowatt-hour (kWh), which is 35% lower than the national average.
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The cheapest rates are during off-peak hours
The cheapest electricity rates in Seattle are during off-peak hours. Off-peak hours are when electricity costs are at their lowest. In Seattle, off-peak hours are from midnight to 6 a.m. every day. During this time, the cost of generating electricity and the demand for electricity are low, resulting in lower rates for consumers.
Time-of-use electric rates are designed to encourage consumers to use less electricity when the cost of generation is high. These rates follow a set schedule, with electricity providers charging more during peak hours when the cost of generation and demand are high, and less during off-peak hours.
In Seattle, peak hours are from 5 p.m. to 9 p.m., Monday through Saturday, except on city-observed holidays. Mid-peak hours are from 6 a.m. to 5 p.m. and 9 p.m. to midnight, Monday through Saturday, and all day on Sundays and city-observed holidays.
To take advantage of lower rates during off-peak hours, Seattle City Light offers a Time of Use rate program that will be available in fall 2025. This program will allow eligible residential and small or medium business customers with advanced meters to be billed based on when they use electricity, not just how much they use.
By enrolling in the Time of Use rate program and using electricity during off-peak hours, Seattle residents can save money on their electric bills and reduce the strain on the electrical grid during peak hours.
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Peak hours are the most expensive
In Seattle, the price of electricity depends on the time of day and the demand for electricity. The city operates on a three-tiered peak system: peak, mid-peak, and off-peak. Peak hours are the most expensive time for electricity usage. During these hours, the cost of electricity generation is high, and so is the demand.
Peak hours in Seattle are from 5 p.m. to 9 p.m., Monday through Saturday. These hours represent the period when most people are at home after work or school, resulting in increased electricity usage and, consequently, higher rates.
To save money on electricity bills, it is advisable to use electricity during off-peak hours when rates are lower. In Seattle, off-peak hours are from midnight to 6 a.m. every day. During these hours, the demand for electricity is lower, and the cost of generation is reduced.
The mid-peak hours in Seattle are from 6 a.m. to 5 p.m. and 9 p.m. to midnight, Monday through Saturday. On Sundays and city-observed holidays, mid-peak pricing applies all day from 6 a.m. to midnight, with no peak hours.
The Time of Use rate, or TOU, is a pricing structure that encourages customers to use electricity when it is cheaper and in lower demand. By adjusting habits and using appliances during off-peak hours, customers can take advantage of lower rates and reduce the strain on the electric grid. Seattle plans to offer the TOU rate in fall 2025, providing customers with the flexibility to make informed choices about their energy usage and potentially save on their electricity bills.
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The Time of Use rate encourages off-peak usage
The Time of Use rate, also known as the Time of Day Metering, is an optional rate ordinance that was approved by the Seattle City Council in September 2022 and is expected to be launched in fall 2025. This rate encourages off-peak usage by offering lower rates during off-peak hours.
The Time of Use rate is designed to incentivize customers to use less electricity when the cost of generation is high. It follows a set schedule, with electricity being more expensive during peak hours and less expensive during off-peak hours. Peak hours are considered the most expensive time to use electricity, while off-peak hours are when electricity costs are the lowest. In Seattle, peak hours are from 5 pm to 9 pm, Monday through Saturday, excluding city-observed holidays. Mid-peak hours are from 6 am to 5 pm and 9 pm to midnight, Monday through Saturday, while Sundays and city-observed holidays are considered mid-peak all day. Off-peak hours are from midnight to 6 am every day.
To take advantage of the Time of Use rate, customers must have an advanced meter, also known as an Advanced Metering Infrastructure (AMI) meter. This digital meter records energy use every 5 or 15 minutes and wirelessly transmits the data to Seattle City Light, allowing them to bill customers based on when they use electricity rather than just how much they use. Customers can use the Energy Insights tool to better understand and manage their energy use and decide if the Time of Use rate is right for them.
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The average electricity rate in Seattle is 13 ¢/kWh
The cost of electricity depends on various factors, including where you live, the types of power plants providing electricity, and the time of day or year. In Seattle, the cost of electricity is lowest during off-peak hours, which are typically from midnight to 6 a.m. every day. Peak hours, when electricity is most expensive, are from 5 p.m. to 9 p.m., Monday through Saturday, except on city-observed holidays. Mid-peak hours are from 6 a.m. to 5 p.m. and 9 p.m. to midnight on the same days.
To save money on electricity bills, Seattle residents can consider using less electricity, reducing the cost of electricity by installing solar systems, or taking advantage of off-peak hours when electricity rates are lower. Time-of-use rates are designed to encourage customers to use electricity when power is cheaper and demand is lower. By being mindful of when certain appliances are used and taking advantage of off-peak times, residents can reduce their electricity costs.
Solar panel systems can also help reduce monthly electric bills by offsetting electricity consumption. On average, a solar system investment can break even in around 16 years in Seattle, after which residents may not owe anything on their electric bills.
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Frequently asked questions
In Seattle, electricity is cheapest during off-peak hours, which are from midnight to 6 a.m. every day.
Peak hours are when electricity is most expensive. In Seattle, peak hours are from 5 p.m. to 9 p.m., Monday through Saturday, except on city-observed holidays.
To take advantage of lower rates during off-peak hours, you must have an advanced meter, also called an Advanced Metering Infrastructure (AMI) meter. This digital meter records your energy use and allows Seattle City Light to bill you based on when you use electricity, not just how much you use.
