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Energy Billing Overview
Understanding Peak Energy Billing in San Diego
Switching to electric appliances offers numerous benefits, including reduced greenhouse gas emissions, improved indoor air quality, and enhanced energy efficiency. Modern electric appliances, such as heat pump water heaters (HPWHs) and heat pump Heating, Ventilation, and Air Conditioning (HVAC) systems, are designed to use less energy overall while delivering superior performance. However, transitioning to electric appliances can lead to changes in energy usage patterns. Understanding how peak energy billing works—combined with mindful daily habits—can help you manage costs effectively.
Simple adjustments, such as placing a lid on pots while boiling water to reduce cooking time, turning off the stove a few minutes before food is fully cooked to use residual heat, and unplugging devices when not in use, can lead to noticeable energy savings. Additionally, running major appliances like dishwashers and laundry machines during off-peak hours, using cold water for laundry, optimizing refrigerator and freezer temperatures, keeping vents and air filters clean for better HVAC efficiency, and setting your thermostat a few degrees higher in summer or lower in winter can all contribute to lower bills. By combining efficient appliance use with these small but impactful energy-saving practices, households can maximize cost savings while benefiting from a cleaner, more sustainable energy source.
1. Trap the Heat
Cover pots with lids to cook more efficiently.
2. Use Residual Heat
Turn off the stove early and let the remaining heat finish cooking.
3. Unplug Devices
Prevent phantom energy loss by unplugging items not in use.
4. Shift Appliance Use
Run dishwashers, laundry machines and other appliances during off-peak hours.
5. Wash with Cold Water
Save energy by skipping hot water cycles.
6. Optimize Fridge Settings
Set refrigerators to 37–40°F and freezers to 0°F.
7. Clean Vents & Filters
Improve HVAC efficiency with regular maintenance.
8. Adjust the Thermostat
Set temperatures a few degrees up in summer and down in winter.
9. Small Changes, Big Impact
Combining these tips helps reduce your bill and your carbon footprint.
The City of San Diego is served by San Diego Gas & Electric (SDG&E), which offers several electricity pricing plans, including Time-of-Use (TOU) options. Under TOU plans, electricity rates vary depending on the time of day—higher during peak demand hours and lower during off-peak periods. While TOU is the default for most residential customers, SDG&E offers multiple plan options, including simpler tiered-rate plans for those who prefer a flat-rate structure without time-based pricing. Additionally, SDG&E's TOU plans have seasonal variations:
- Summer Season: June 1 – October 31
- Winter Season: November 1 – May 31
What is Time-Of-Use (TOU) Pricing?
Time-Of-Use (TOU) pricing encourages energy conservation by charging different rates based on overall electricity demand across the regional power grid, not individual household usage:
- On-Peak Hours: Higher rates apply when energy demand is at its highest.
- Off-Peak Hours: Lower rates apply when demand is lower, typically during late nights and early mornings.
- Super Off-Peak Hours: The lowest rates apply during specific hours when overall energy consumption is minimal.
SDG&E offers several pricing options:
- TOU-DR1 has three pricing periods, which is ideal for those who can shift usage to late at night or early morning.
- TOU-DR2 is simpler, with just on-peak and off-peak times.
- TOU-DR-P adds a high-rate event during extreme demand but offers lower rates most of the year.
- TOU-ELEC is for EV owners or homes with battery storage, with lower overnight rates.
- Standard DR is a tiered plan without time-based pricing, which is best for those who prefer a flat structure.
The TOU-DR-P plan divides each day into three rate periods: Super Off-Peak, Off-Peak, and On-Peak, with Reduce Your Use event periods occurring during On-Peak times on high-demand days. The chart uses dollar signs to show relative pricing, with more dollar signs indicating higher rates.
Weekdays (Monday through Friday):
- 12 AM – 6 AM: Super Off-Peak ($)
- 6 AM – 10 AM: Off-Peak ($$)
- 10 AM – 2 PM: Super Off-Peak in March and April ($); otherwise, Off-Peak ($$)
- 2 PM – 4 PM: Off-Peak ($$)
- 4 PM – 9 PM: On-Peak ($$$); Reduce Your Use events may occur during this window and have the highest rate ($$$$)
- 9 PM – 12 AM: Off-Peak ($$)
Weekends and Holidays:
- 12 AM – 2 PM: Super Off-Peak ($)
- 2 PM – 4 PM: Off-Peak ($$)
- 4 PM – 9 PM: On-Peak ($$$); Reduce Your Use events may occur during this window ($$$$)
- 9 PM – 12 AM: Off-Peak ($$)
“Reduce Your Use” events indicate very high pricing tiers and are called during periods of peak grid demand to encourage conservation.
How to Manage Your Energy Costs
To optimize your electricity usage and reduce costs, consider these strategies:
- Shift Usage: Run major appliances such as dishwashers, laundry machines, and electric water heaters during off-peak or super off-peak hours.
- Use Smart Thermostats: Program heating and cooling systems to operate efficiently based on TOU pricing schedules.
- Leverage Renewable Energy: If your home has solar panels or a battery storage system, charge battery storage systems during off-peak or super off-peak times and use electricity during peak solar generation (typically midday) or store excess energy for later use during peak rate periods. This maximizes cost savings and enhances energy independence.
- Enhance Home Insulation: Weatherproof doors and windows, use blackout curtains, and seal air leaks to maintain indoor temperatures efficiently, reducing the need for excessive heating or cooling.
- Monitor Your Energy Usage: Use smart meters or utility apps to track when and how you’re using energy.
Learn More
For detailed information on TOU pricing plans and how they affect your bill, visit the SDG&E website: SDG&E Peak Energy Billing.