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TOU Peak and Off Peak
TOU Peak and Off Peak » Central Hudson » Time-of-Use Billing » TOU Peak and Off Peak
(For customers enrolled or enrolling in Time-of-Use Billing on or after Dec. 1, 2017)

What is Time-of-Use Billing?

Time-of-Use Billing is an optional billing program that encourages customers to reduce their use of electricity during peak hours by shifting their usage to off-peak hours. Electricity generally costs more when overall usage is high. By using more energy during off-peak hours, customers can save money and help grid operators balance loads on the electric system.

While switching to Time-of-Use billing may require changes in household routines, shifting most energy use to off-peak hours, especially the use of large appliances such as dishwashers, air conditioners, electric ovens and clothes dryers, or even recharging electric cars, can save money.

How does it work?

Under this program, customers pay less for electricity during off-peak hour periods than during peak hour periods. Special electric meters that measure both how much electricity is used and when, are installed at the homes of customers who enroll in Time-of-Use Billing.

Electricity rates have two components: Delivery (the cost to operate and maintain the electric grid), and Supply (the market price of the electric energy itself.

Under the Time-of-Use program, customers are billed on-peak and off-peak rates for the Energy Delivery charge, and on and off-peak rates for Supply charges (the Market Price Charge and Market Price Adjustment). Participants will receive an annual letter that compares total charges for their usage under the Time-of-Use and standard rates.

What are the peak hours?
The time period for peak hours is 2 p.m. to 7 p.m., Monday through Friday. All other hours, weekends and six major holidays per year (New Year’s Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day and Christmas) are considered off-peak.

Will this save money on my bill?
The table below shows the proportion of electricity that must be used during off-peak hours to break even with standard rates for different levels of total monthly usage. For example, a resident enrolled in the Time-of-Use program using 650 kilowatt-hours of electricity per month and shifting 72 percent of their electricity use to off-peak hours will pay the same amount under standard residential electric service and the Time-of-Use program. Shifting more electricity from on-peak to off-peak hours will provide savings as compared to the standard rates, while shifting less than 72 percent will result in higher charges.

Using base delivery rates effective July 1, 2017 and supply rates effective May 11, 2017:

Total Monthly usage: 650 kWh 1000 kWh 1250 kWh 1,500 kWh 1,750 kWh 2,000 kWh
Percent needed to be used during
off-peak hours to break even
72% 67% 65% 63% 63% 62%

How do I sign up?
Apply Online 

OR call Central Hudson at 845-452-2700 or, if calling from out of the 845 area code, 1-800-527-2714. Starting the program must coincide with a new billing cycle and the installation of a new time-of-use meter at their residence.

Can I sign up for a short time and then switch back to a standard rate?
Customers must sign on for a minimum of one year.

What is the difference between the two rates?
The chart below compares on- and off-peak charges under the Time-of-Use program, and standard residential electric charges: 

Billing Line Items Time-of-Use Charges Standard Residential Charges
Customer Charge
$27.00
$24.00
Energy Delivery charge, per kWh  
$0.06586
On-peak energy delivery charge, per kWh
$0.07494
n/a
Off-peak energy delivery charge, per kWh
$0.06116
n/a
Base MFC Administration Charge
$0.00075
$0.00163
Base MFC Supply Charge
$0.00108
$0.00236
Electric Bill Credit
-$0.00025
-$0.00073
NYS Assessment
$0.00067
$0.00067
Market Price Charges  
Market supply charges
On-peak market price charge
120% of standard charge
n/a
Off-peak market price charge
89% of standard charge
n/a

All other billing charges that apply to both standard and Time-of-Use rates are the same.

How does Central Hudson calculate the peak and off-peak supply charges?
Using historical supply prices and load research data to understand how each type of customer uses electricity, Central Hudson calculated price usage ratios. The Time-of-Use rates are expressed as percentages of the standard residential supply rate, which changes each month, in contrast to delivery rates which are stable and set through regulatory procedures with New York state.

Does this apply to non-residential customers?
Large electric-usage customers are required to participate in the Company’s hourly pricing program when purchasing supply from Central Hudson, which is different than time-of-use billing. Medium size commercial and industrial customers can opt for the hourly pricing program.

Click here for information on the previous Time-of-Use Billing program available before Dec. 1, 2017 (information applicable only to customers enrolled before Dec. 1, 2017).