Electric Vehicle Time of Use Rate

Danvers Electric is offering a pilot Residential Electric Vehicle Time of Use (REVTOU-1) rate for customers that have Level II EV chargers installed at their homes. This pilot program will begin late summer and customers will be required to commit to this rate classification for a period of 12 months. 

WHAT ARE TME OF USE (TOU)RATES? 

A TOU rate charges different rates for electricity depending on the time of day it is used. For the ratepayer, TOU more accurately reflects the actual real-time energy and transmission costs Danvers Electric incurs to provide service. In the case of EV charging, a TOU rate incentivizes customers to charge their vehicles during off-peak periods when system demand and the associated wholesale cost of electricity is lower. This would help us to balance system load and avoid peak energy, capacity, and transmission costs. 

HOW DOES TIME OF USE (TOU)  RATES WORK?

With TOU rates, customers are charged a higher electric rate when the cost of purchasing and delivering electricity is highest (usually late afternoon to early evening, 12:00 PM - 7:00 PM) and a lower electric rate when the cost of generating electricity is lower (usually late evening into the early morning, 7:00 PM - 12:00 PM).

A TOU rate for EV charging has the potential to help reduce the overall cost of electricity for customers who charge their vehicles during off-peak periods. By incentivizing customers to shift to off-peak periods, REVOU-1 customers have the potential to save around 21% from the current R-1 rate. Conversely, if a customer chooses to charge their vehicle during on-peak times, REVTOU-1 customers will see a 25% increase to their bill from the current R-1 rate.