Molly Ayala
SCE offers a variety of rate plans to its customers, including tiered rate plans and Time-Of-Use (TOU) plans. TOU plans are based on the time of day and season, with lower rates during off-peak and super off-peak periods and higher rates during peak periods when energy demand is high. Peak pricing for electricity on SCE's TOU plans typically occurs during the summer weekdays, especially in the evening hours, such as 4-9 pm or 5-8 pm. These rates can be as high as 74 cents per kWh during the summer months. SCE also offers Critical Peak Pricing (CPP) for businesses, which provides bill credits during the summer season in exchange for higher electricity prices during CPP events. Understanding the rate plans and their billing structures can help customers manage their energy costs effectively and choose the most suitable plan for their usage patterns.
| Characteristics | Values |
|---|---|
| Time of peak pricing | 4 pm to 9 pm and 5 pm to 8 pm |
| Date of peak pricing | Fridays |
| Highest rates | Summer weekdays |
| Daily Basic Charge | $0.03 per day |
| Minimum Daily Charge | $0.35 per day |
| Baseline Credit | -$0.09 per kWh up to your monthly baseline allocation |
| Average residential rate | 31.4 cents per kWh as of March 2025 |
| Highest "On Peak" rate | 74 cents per kWh in the summer |
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What You'll Learn
- SCE's Time-of-Use (TOU) plans offer lower rates during off-peak hours
- The Tiered rate plan charges a constant rate until usage exceeds a certain threshold
- The average residential rate is 31.4 cents per kWh, but On Peak rates can reach 74 cents per kWh in the summer
- Critical Peak Pricing (CPP) events reward businesses for reducing energy use during high-demand periods
- Summer weekdays between 4-9 pm are the highest-priced periods
SCE's Time-of-Use (TOU) plans offer lower rates during off-peak hours
SCE's Time-of-Use (TOU) plans are designed to help homeowners save money by shifting their energy use to lower-cost, off-peak hours. TOU plans are based on the time of day and the season, allowing customers to take advantage of lower rates during off-peak and super off-peak periods. For example, electricity prices are typically lower early in the day, overnight, and on weekends. While bills may be higher during the summer, TOU plans can result in lower overall annual energy costs.
The TOU 4-9PM and 5-8PM plans, for instance, offer low prices while solar power is contributing to the power grid. These plans are ideal for customers who stay up late and may benefit smaller households in coastal areas with moderately sized homes or condos. However, the highest rates occur during summer weekdays from 4 pm to 9 pm or 5 pm to 8 pm, depending on the specific plan.
SCE offers three TOU rate plans, including a specific plan for customers with electrification upgrades like EV charging, solar panels, battery storage, and heat pump HVAC systems. This plan, known as TOU-D-PRIME, features a daily basic charge and lower rates. By adopting clean energy upgrades, households can lower their cost per kWh of electricity.
Overall, TOU plans can provide an opportunity to lower electricity costs, especially for customers who can be deliberate about their electricity usage and avoid on-peak hours. However, it is important to carefully manage electricity usage during on-peak hours to avoid higher costs. By understanding SCE's TOU rate plans and billing structure, customers can make informed choices to save money on their electricity bills.
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The Tiered rate plan charges a constant rate until usage exceeds a certain threshold
SCE's Time-of-Use (TOU) plans offer varying electricity prices based on the time of day, day of the week, and season. These plans are designed to reflect the changing costs of producing and delivering electricity, which can fluctuate throughout the day and across seasons. TOU plans encourage customers to shift their energy usage to lower-cost, off-peak hours, helping them manage their energy costs effectively.
On the other hand, the Tiered rate plan charges a constant rate until usage exceeds a certain threshold, also known as the baseline allocation or baseline allowance. This baseline is determined by factors such as your location, heating source, and the season. Once your energy consumption surpasses this baseline, you enter Tier 2, and a higher rate is applied for the remainder of the billing cycle.
As of May 2025, SCE's tiered rate plan charges 32 cents per kWh until you reach the baseline allocation limit, after which the price increases to 42 cents per kWh. This tiered pricing structure is designed to encourage energy conservation by making higher consumption more expensive.
While TOU plans can be beneficial for customers who can adjust their energy usage to off-peak hours, the Tiered rate plan may be more suitable for households with consistent energy use throughout the day. It is important for customers to understand these options to make informed decisions and effectively manage their energy costs.
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The average residential rate is 31.4 cents per kWh, but On Peak rates can reach 74 cents per kWh in the summer
SCE's average residential rate is 31.4 cents per kWh. This rate is subject to change depending on the season and time of day. As of May 2025, SCE has three residential time-of-use (TOU) rate plans, with electricity prices ranging from 23 to 74 cents per kWh.
The TOU plans are designed to reflect the changing costs of producing and delivering electricity throughout the day. With TOU plans, electricity prices are lower during off-peak hours, encouraging usage during these periods. On the other hand, the tiered rate plan charges a constant rate until usage exceeds a certain threshold, after which a higher rate applies.
The peak hours for SCE customers with TOU rate plans are either 4-9 p.m. or 5-8 p.m., depending on their specific plan. The TOU-D-5-8PM plan has the highest on-peak rates, reaching 74 cents per kWh during summer weekdays. The TOU-D-4-9PM plan has a slightly lower summer weekday rate of 59 cents per kWh, but a longer on-peak window.
The summer months are generally considered high-demand months, and SCE's rates during this period can be higher than in winter. Customers can use lower-priced, off-peak hours to manage their energy costs. Bills may be higher during the summer, but overall annual energy costs can be lower with TOU plans.
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Critical Peak Pricing (CPP) events reward businesses for reducing energy use during high-demand periods
Critical Peak Pricing (CPP) events are an opportunity for businesses to reduce their energy use during high-demand periods. CPP events can occur up to 12–15 times a year, typically during the summer season on the hottest days, and occasionally on other days when electricity demand is high due to extreme or unusual temperature conditions.
CPP events are scheduled between 4 pm and 9 pm, and businesses are notified a day in advance. During this time, electricity prices are significantly higher than normal. Businesses can avoid high charges by reducing their energy usage during these periods. This may include turning off non-essential lighting, signage, window displays, and office equipment, as well as raising the thermostat settings to 78°F.
CPP is the default option for small, medium, and large business customers, as well as large agricultural and pumping customers. Businesses can choose a rate without CPP at any time, and they are not required to shut down operations to participate in CPP events. Instead, they can implement energy-saving practices to reduce their energy usage during these peak periods.
By enrolling in CPP, businesses can receive bill credits during the summer months (June 1 to September 30) to offset the typically higher energy costs during this period. This is offered in exchange for paying higher electricity prices during CPP events. SCE also offers a one-time Bill Protection guarantee for 12 months, where they will credit the difference if a business pays more during their first year on CPP.
Overall, CPP events reward businesses that can reduce their energy use during high-demand periods by offering bill credits and the opportunity to lower their overall energy costs.
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Summer weekdays between 4-9 pm are the highest-priced periods
Summer weekdays between 4 pm and 9 pm are the highest-priced periods for electricity with SCE. This is because these are the times of the highest demand for energy, and so prices surge.
SCE offers a Time-Of-Use (TOU) plan, which is based on the time of day and the season. This plan is designed to help customers save money by shifting their energy use to lower-cost, off-peak hours. The TOU plan is best for those who can manage their energy habits and adjust their usage.
The TOU plan offers lower rates during off-peak hours, which are typically early in the day, overnight, and on weekends. By taking advantage of these lower rates, customers can avoid higher weekday rates when energy resources are in greater demand.
The TOU plan also offers different rates for summer and winter months. Summer bills tend to be higher, while winter bills are lower. The summer rates apply from June to September, and the winter rates from October to May.
The TOU plan is just one option for SCE customers. There is also a Tiered Rate Plan, where electricity costs vary based on usage levels. This plan encourages energy efficiency, with lower rates charged up to a baseline allocation and higher rates beyond that.
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Frequently asked questions
The Time-of-Use rate plan offers lower rates during off-peak hours, which is ideal for customers who can adjust their energy usage.
The Time-of-Use rate plan can help you save money by shifting your usage to off-peak hours. For example, you can run your dishwasher during off-peak periods instead of peak periods to lower your electricity costs.
The highest rates are typically during summer weekdays from 4 pm to 9 pm.
As of March 2025, SCE's average residential rate is 31.4 cents per kWh, but this can vary based on your rate plan, with "On Peak" rates reaching as high as 74 cents per kWh in the summer.
Critical Peak Pricing is a rate plan designed for businesses to reduce their energy use during high-demand periods. Customers enrolled in CPP can receive bill credits in exchange for paying higher electricity prices during CPP events.
