How to Trim Your Energy Bill

It’s time again to revamp our schedules for when to run the dishwasher, do laundry, and engage in the other energy-intensive parts of our day in order to ensure we’re not paying peak rates. The cheapest time throughout the year is between 7 p.m. and 7 a.m. daily, but the on-peak time shifts depending on the season: In winter, peak demand is weekdays from  7  to 11 a.m. and 5 to 7 p.m. In the summer, peak demand is weekdays between 11 a.m. and 5 p.m. 

Why do we do this twice-annual swap? It comes down to supply and demand … and weather. Energy costs more when we use most electricity as a group (such as midday in the summer when we run air conditioners). It costs less when we, as a group, demand less.

But non-peak energy is not just cheaper, it’s greener too. As The Ontario Energy Board explains, “when demand is lower, most of the power we use comes from sources like nuclear generators and large hydroelectric stations, which are designed to run all the time. This is called baseload power.” When demand goes above what the baseload power can supply, the province fires up natural-gas generation to fill the need, which means we’re burning fossil fuels to power our toasters and lightbulbs. 

So the aim of the variable pricing is to shift people’s usage to flatten out the demand, so that it’s below the baseload line as much as possible — like trying to get people to commute outside of rush hour.

One easy way to make the shift is by using the delay setting on appliances such as clothes washers and dishwashers, and get your drying rack (I love this one) into the action. Placing simple notes on your appliances with the best times to use them will remind your family to adjust their habits for the season ahead. 

Because energy made outside baseload supply also costs more to produce, we pay more. But that economic feedback can have an environmental benefit, since it should discourage people from using energy when demand is higher — in essence, when it has to be made especially for your use. 

If you want to see where our electricity is coming from in Ontario in real time — and whether it is clean or not — check out this super-cool dashboard at Gridwatch. Seeing where our energy is coming from helps explain why increasing our renewable capacity can help reduce how much gas we burn. 

Also, if, like Toronto co-editor Leslie Garrett, you plug in a vehicle at night, take a look at the Ultra-Low Overnight (ULO) plans — it may make sense to switch your billing to take advantage of dramatically lower rates from 11 p.m. to 7 a.m. (as in 2.8 cents/kWh on the ULO vs. 8.7 cents/kWh on the Time of Use (TOU) plan, from Toronto Hydro). Check out what prices your provider is offering to see what makes most sense for your household.

Are you heat-pump curious? Read Alec Ross’s piece for the low-down.