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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)


Apply Online 

What is Time-of-Use Billing?

 

The idea behind Time-of-Use is simple. Some things cost more, or less, depending on when they are used. Movies cost less if you see them on Tuesday afternoons instead of Saturday nights. Air fares are cheaper when you fly on certain days. The price for electricity is no different. Demand for electricity is the highest during certain times of the day, driving up the price. But the good news is there are alternate hours of the day, called off-peak hours, when demand for electricity is lower, decreasing the price. The better news is residential electric heat customers can save the most with this lower off-peak rate, when enrolled in our Time-of-Use program.

Under the program, electric rates are lower than standard rates during off-peak hours, and higher than standard rates during peak hours. By managing the use of major appliances (e.g. washing machines, dryers, dishwashers, etc.) from peak to off-peak hours, along with setting your electric heat (if applicable) on a low setting during peak hours, savings can add up*. 

When enrolled in Time of Use, 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 84 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 84 percent will result in higher charges.

Using base delivery rates effective July 1, 2018 and supply rates effective June 12, 2018:

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
84% 83% 83% 83% 83% 82%

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 residential time-of-use meter.  

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
$24.00
$21.00
Energy Delivery charge, per kWh  
$0.07563
On-peak energy delivery charge, per kWh
$0.08522
n/a
Off-peak energy delivery charge, per kWh
$0.07144
n/a
Base MFC Administration Charge
$0.00072
$0.00180
Base MFC Supply Charge
$0.00121
$0.00305
Electric Bill Credit
-$0.00116
-$0.00190
NYS Assessment
$0.00000
$0.00000
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).