Time-of-use rates work for small businesses whose load profile concentrates outside the 4 to 9 pm peak window. A breakfast-and-lunch restaurant wins. An evening kitchen loses. The 3-question decision tree: when does your peak load occur, can you shift it, and how big is the TOU peak-to-off-peak spread.
Sector-by-sector TOU fit
Breakfast restaurants, retail open until 6 pm, and morning-only manufacturing typically win on TOU. Dinner restaurants, evening retail, and shift-work manufacturing typically lose.
Office buildings open 9 to 6 are mostly off-peak (peak window starts at 4 pm but most load ends by 6 pm). Light manufacturing varies by shift schedule.
The 3-question decision tree
Question 1: when does your peak load occur? Question 2: can you shift it outside 4 to 9 pm? Question 3: how big is the peak-to-off-peak spread on the TOU plan?
If peak load is outside the 4 to 9 pm window AND the spread is at least 3:1, TOU saves money. Otherwise, flat-rate is the safer call.
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Further reading