Small General Service (SGS)

Demand Time-of-Use

Can your small business avoid using a lot of power during time periods when people typically use energy the most? If so, our Small General Service Demand Time-of-Use pricing plan might be right for you.

How does SGS Demand Time-of-Use work?

This plan combines lower usage-based rates for most of the day with higher usage rates during on-peak hours. It also includes a monthly "demand" charge based on your business' highest hourly usage during on-peak hours. So if you can spread out your use of large electric appliances and equipment during lower-cost, off-peak hours, this plan gives you the power to reduce your monthly bill.

Under this plan, you could maximize your savings by avoiding the simultaneous use of your business' air conditioning, lighting, computers, copiers, printers and other equipment during higher-cost, on-peak hours: 2-8 p.m. during the summer (May-September) and 6-10 a.m. and 5-9 p.m. during the winter (October-April).

With SGS Demand Time-of-Use, timing is everything. The more you can level out and shift energy use away from on-peak hours, the better off you’ll be. Your savings will vary based on your business' usage patterns.

What are the potential advantages of this plan?

By adding a demand rate to the traditional time-of-use pricing structure, our SGS Demand Time-of-Use plan offers more savings opportunities for businesses that make smart choices about when and how they use energy.

TEP's service costs are driven by the need to satisfy customers’ highest demand, even if it only occurs once each month. When that maximum usage level goes down, so does the cost of providing all of our customers with safe, reliable service.

Our SGS Demand Time-of-Use plan is designed to reward customers who do their part to reduce the peak demand on the electric grid during peak usage periods. Reducing the peak energy demand promotes more efficient use of our energy resources and can help limit future rate increases.

What are the potential disadvantages of this plan?

If your business uses a lot of power during on-peak hours, your energy costs could increase under our SGS Demand Time-of-Use plan. That’s particularly true if your on-peak hourly usage reaches a high level even once per billing cycle. The higher Demand Charge that results from such usage reflects the cost of resources and facilities TEP must build and maintain to satisfy even occasional needs during peak usage periods.

Also, be aware that customers who leave this plan cannot return to SGS Demand Time-of-Use for at least 12 months.