New Time-Varying Rate Option for Qualifying Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison Customers
FirstEnergy is implementing phase one of a Grid Modernization Plan that includes installing 700,000 smart meters in parts of the Ohio Edison, Cleveland Electric Illuminating Company and Toledo Edison service areas. Residential customers with smart meters may be eligible for a new, voluntary Time-Varying Rate (TVR) offer that the Public Utilities Commission of Ohio has approved.
Time of day electric rates can encourage customers to use less electricity overall, reduce energy bills and benefit the environment by lowering greenhouse gas emissions.
What is a time-varying rate (TVR)?
Customers enrolling in a time-varying rate have an opportunity to save money compared to the Standard Service Offer Rate, also known as the “Price to Compare.” This rate option allows customers to lower their energy costs by shifting or reducing their energy usage during peak times when electricity demand is highest.
The electric rates are divided into three time-varying categories:
|2 p.m. to 6 p.m. Eastern Prevailing Time (EPT)||Monday through Friday, excluding holidays*|
|6 a.m. to 2 p.m. and 6 p.m. to 8 p.m. EPT||All other hours|
|All other hours||All other hours|
*New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Does a time-varying rate require you to reduce electric usage?
Although you are not required to reduce your electric usage, under the TVR, a customer can achieve savings by shifting electric usage from hours when rates are higher to hours when rates are lower. A combination of shifting usage and reduced consumption would likely result in additional savings.
Are savings guaranteed with the time-varying rate?
No. If a customer is not able to shift their electricity usage to the lower priced time periods, they could end up paying more than the Standard Service Offer Rate.
Below are illustrative examples of a customer’s electricity usage during a summer month and a winter month and the savings produced when the customer’s usage is shifted during the day and week:
Time-of-day Option Summer (June through August)
$/kWh kWh Used $ Billed
Standard Service Offer Rate
$0.041087 750 $30.82 TVR Total See below: 750 $28.95 TVR: Midday Peak $0.067130 50 $3.36 TVR: Shoulder Peak $0.044047 200 $8.81 TVR: Off Peak $0.033565 500 $16.78
Time-of-day Option Winter (All other months)
$/kWh kWh Used $ Billed Standard Service Offer Rate $0.03443 750 $25.08 TVR Total See below: 750 $23.69 TVR: Midday Peak $0.052981 50 $2.65 TVR: Shoulder Peak $0.038974 200 $7.79 TVR: Off Peak
How can you manage your electricity usage?
Simple changes to when you use energy-intensive appliances can result in savings on your electric bill and reduce peak demand on the grid, including:
- Run washing machines, clothes dryers, dishwashers, and all large appliances off-peak
- Use an ENERGY STAR® certified smart thermostat to reduce heating/cooling in on-peak hours or when you are away
- Use timers on electric water heaters and recirculation pumps so they operate mainly off-peak
- Turn off all but essential lights during on-peak hours, or put lights on timers
- If you have an electric vehicle, charge it off-peak
How can you review your electricity usage?
Your smart meter automatically detects and records electricity usage at hourly intervals and you will be billed according to your rate plan. Your recorded usage is accessible on the Customer Portal of the FirstEnergy website. Also available is our Home Energy Analyzer, which is a convenient tool to help you better understand your household energy usage and identify ways to improve efficiency.
More information can be found by logging in to your account here: https://firstenergycorp.com/log_in.html.
Who is eligible to participate?
The program is available to residential customers with a FirstEnergy company installed smart meter who are taking generation from the utility and not shopping with a competitive retail electric service provider.
What if you choose not to participate in the time-varying rate?
The program is voluntary. If you choose not to participate, you will continue to pay the Standard Service Offer Rate. If you do sign up for the TVR offer, you can cancel at any time.