Peak vs Non-Peak Hours

The Time-of-Use & Residential Demand structure changes how we measure and bill for electric usage because it incorporates when that usage takes place. If electricity is used during "peak hours," or the part of the day when many customers are using electricity at the same time, it costs more to produce and distribute electricity than during times when less people are using it. The TOU rates are structured to charge more for usage during peak hours than non-peak hours.

In building the proposed rate structure and determining the TOU and demand rates (to begin no sooner than July 1, 2026), DPU determined which hours are peak hours and factored in the average amount of electricity used by residential customers during those peak hours. The average Los Alamos County utility customer uses about 31% of their electricity during the peak hours of 5 p.m. and 11 p.m.