My TOU (Time of Use) overnight rate is 1.4 cents per kWh from 11pm to 7am, but the actual cost with taxes is 4.5 cents per kWh. How can this be? Because as I mentioned in my earlier post, some of the taxes and tariffs are calculated as a percentage of kWh used, so they are not affected by whatever the rate is. Where I live in Georgia the main one is something called Fuel Cost Recovery. It's called Energy Cost Recovery in some states, and maybe there are other names for it.
Here is the breakdown for my overnight rate for one kWh of charging:
Electric usage = 1.4 ¢
Fuel Cost Recovery = 2.4 ¢
Taxes = 0.7 ¢
Total = 4.5 ¢
Yes that is still a great price compared to other parts of the country, but not quite the 1.4 cents that you see on their advertising. The standard rate is 6 cents so you think that with a rate of 1.4 cents during overnight hours you will clean up. But comparing the two rates including taxes, the standard rate with taxes is around 11 cents, the TOU overnight rate is 4.5 cents, so a little less than half. Yes that's great, but it's only during 11pm - 7am. You then have to hope that those savings offset the higher prices that you pay during peak hours, which for me is 2pm - 7pm weekdays during the summer.
With the TOU plan the peak hours rate is 20 cents per kWh, with FCR and tax it's around 25 cents. If I try and run AC during peak hours the cost is astronomical and can easily wipe out the overnight savings. So what I do is I run the AC hard overnight when the rates are super cheap, much colder than I normally would, to try and pull as much heat out of the house as I can. Then I don't use AC between 2pm and 7pm on weekdays. If it all works out the house will be just about to get uncomfortably warm by 7pm when I can run AC again at a reasonable rate. Not everyone is willing to do that especially if they are home during those hours.