This picture looks exciting, doesn’t it? But the vertical axis is not to scale. In fact the price changes are so small that they are barely visible. See the next figure. For 7 months a year, my prices will vary by only $.02/kWh over a week!
Our local utility, San Diego Gas & Electric, just sent us a notice that we will be switching to Time of Use (TOU) pricing. I have no objections, BUT:
- TOU was innovative in the 1980s. But for any house with a smart meter, which we all have now, it has been dominated by real-time related pricing for at least 20 years.
- The price differentials are negligible – 1 cent per kwh, or about 3 percent! In the winter almost nobody will adjust their usage, or even keep track of it. At least differences in the summer are substantially larger – as much as 30¢ per kwh.