Daycare on TOU rate - makes no sense

Started by Gil S. — 2 years ago — 1 views
Found a daycare center on time-of-use rate that's costing them extra money. They're open 6am-7pm weekdays, so they're hitting all the peak hours. Usage is about 2,800 kWh/month. Utility rep sold them on TOU saying it would save money. Should be on flat rate, right?
Absolutely should be on flat rate. Daycares are terrible candidates for TOU unless they have significant weekend/evening usage. Run the numbers both ways to show the difference.
Michelle's right. TOU only works for businesses that can shift loads or have significant off-peak usage. Daycare operating hours are perfectly aligned with peak pricing. Classic utility sales error.
Calculated the difference - they're paying about $180/month extra on TOU. Three year lookback means decent recovery. Thanks for confirming my suspicion!