Pricing Plan Basics for a Better Bottom Line

When you’re running a business, the right pricing plan for electricity can make a big difference in your cash flow and bottom line. The following tips and tools make it easier to choose the plan that works best for you while keeping energy costs under control.

Follow the steps to find a plan that’s best for you.

Know Your Business’s
Pricing Plan

Knowing what pricing plan you’re enrolled in is the first step in energy management. Watch the video to learn more.

How does Time-of-Use Work?

Time-of-Use pricing is based on when you use energy, not just how much you use. 

 

Prepare for Event Days

Reduce Your Use Event Days are called when demand on the power grid is high, typically in the summer. Learn how you can save on these days.

Step 1: Compare annual costs

Start with a pricing plan comparison in My Account.

  • You’ll see annual cost estimates based on your past 12 months of electricity use.
  • If you have more than one electric meter or multiple accounts, make sure you select the correct account number.
  • Before choosing a pricing plan, be sure to consider factors that can drive up monthly costs – especially the potential for multiple event days being called under pricing plans that have a Critical Peak Pricing or Reduce Your Use event day component.

Step 2: Consider whether you can participate in an event day plan

When you compare plans in My Account, remember that:

  • The lower annual cost estimates for event day pricing plans are only possible if you can reduce or shift energy use from 2 p.m. to 6 p.m. on up to 18 event days per year with day-ahead notice of a Critical Peak Pricing or Reduce Your Use event day.
  • Event days can be called anytime throughout the year, including multiple days during one billing cycle and on consecutive days.
  • Costs are significantly higher for not conserving energy on event days – a surcharge of up to four times non-event day prices for electricity used from 2 p.m. to 6 p.m., in addition to the daily on-peak prices from 4 p.m. to 9 p.m.
  • You’re already on an event day pricing plan if you see a “P” or “CPP-D” at the end of the name shown under your “CURRENT PLAN,” such as “Time of Use Plus (TOU-A-P)” or “Time of Use Plus (AL-TOU/CPP-D).”
  • A non-event day plan may work better for you if you prefer greater price stability.  

You can use the Event Day Scenario Tool in My Account to determine how many event days you can risk being called before an event day plan is no longer best for your business. You’ll find a link to the tool near the top of the plan comparison page (“My Pricing Plan”).

Step 3: Choose a plan that best supports your operational needs

When choosing a pricing plan, also bear in mind these three cost drivers – and potential savings:

  • Total energy use, which is measured in kilowatt-hours (kWh).
  • When you use energy, since pricing varies by Time-of-Use period.
  • Your maximum use at any given point in time, or demand, as measured in kilowatts (kW).

You’ve got access to all of this information in My Account. You’ll also find it summarized on your SDG&E bill  under “Your Electricity Dashboard” and in the usage history bar graphs.

Quick View Comparison

If you haven’t signed up yet for My Account, take this 3-step decision tree to do a quick view comparison of electricity pricing plans that meet your operational needs.

1. Can you participate in event days?
Can you participate in event days?
2. Do you prefer a pricing plan with two or three Time-of-Use periods?
Do you prefer a pricing plan with two or three Time-of-Use periods?
3. Is your maximum monthly demand under or over 20KW?
Is your maximum monthly demand under or over 20KW?

Where do I find the maximum monthly demand on my bill? 

Based on your selections, we think you might benefit from the following plan(s):

Event day plans with two Time-of-Use periods

Time-of-Use Plus (TOU-A-P)

PLAN KEY FEATURES

  • Two time periods: on-peak and off-peak
  • Electricity costs more after 4 p.m. and before 9 p.m., except on Reduce Your Use event days, when higher electricity prices are between 2 p.m. to 6 p.m.
  • Up to 18 Reduce Your Use Events can be called per year

Based on your selections, we think you might benefit from the following plan(s):

Event day plans with three Time-of-Use periods

Time-of-Use Plus (TOU-A2-P)

PLAN KEY FEATURES

  • Three time periods: on-peak, off-peak and super off-peak
  • Electricity prices cost more from 4 p.m. to 9 p.m., except on Reduce Your Use event days when prices are higher from 2 p.m. to 6 p.m.
  • Up to 18 Reduce Your Use events can be scheduled in a year
  • No demand charge and capacity reservation charge

Time-of-Use (TOU-A3-P) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices cost more from 4 p.m. to 9 p.m., except on Reduce Your Use event days when prices are higher from 2 p.m. to 6 p.m. 

  • Up to 18 Reduce Your Use events can be scheduled in a year 

  • No demand charge and capacity reservation charge 

Based on your selections, we think you might benefit from the following plan(s):

Non-event day plans with two Time-of-Use periods

Time-of-Use (TOU-A)

PLAN KEY FEATURES

  • Two time periods: on-peak and off-peak
  • Electricity prices are higher from 4 p.m. to 9 p.m. Monday to Friday
  • No event day surcharge, demand charge and capacity reservation charge

Based on your selections, we think you might benefit from the following plan(s):

Non-event day plans with three Time-of-Use periods

Time-of-Use (TOU-A2)

PLAN KEY FEATURES

  • Three time periods: on-peak, off-peak and super off-peak
  • Electricity prices are higher from 4 p.m. to 9 p.m.
  • No event day surcharge, demand charge and capacity reservation charge

Time of Use (TOU-A3)

PLAN KEY FEATURES

  • Three time periods: on-peak, off-peak and super off-peak
  • Electricity prices are higher from 4 p.m. to 9 p.m.
  • No event day surcharge, demand charge and capacity reservation charge

Based on your selections, we think you might benefit from the following plan(s):

Event day plans with two Time-of-Use periods

All event day plans currently available to businesses with demand over 20 kW have three Time-of-Use periods.

Based on your selections, we think you might benefit from the following plan(s):

Event day plans with three Time-of-Use periods

Time-of-Use Plus (TOU-M/CPP-D) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices cost more from 4 p.m. to 9 p.m., except on Critical Peak Pricing event days when prices are higher from 2 p.m. to 6 p.m. 

  • Up to 18 Critical Peak Pricing events can be scheduled in a year 

  • Non-coincident demand charge and capacity reservation charge 

 

Time-of-Use Plus (AL-TOU2/CPP-D) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices cost more from 4 p.m. to 9 p.m., except on Critical Peak Pricing event days when prices are higher from 2 p.m. to 6 p.m.  

  • Up to 18 Critical Peak Pricing events can be scheduled in a year 

  • On-peak, non-coincident and generation demand charges as well as capacity reservation charge 

 

Time-of-Use Plus (DG-R/CPP-D) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices cost more from 4 p.m. to 9 p.m., except on Critical Peak Pricing event days when prices are higher from 2 p.m. to 6 p.m. 

  • Up to 18 Critical Peak Pricing events can be scheduled in a year 

  • On-peak, non-coincident demand and capacity reservation charges 

Based on your selections, we think you might benefit from the following plan(s):

Non-event day plans with two Time-of-Use periods

All non-event day plans currently available to businesses with demand over 20 kW have three Time-of-Use periods.

Based on your selections, we think you might benefit from the following plan(s):

Non-event day plans with three Time-of-Use periods

Time-of-Use (TOU-M) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices are higher from 4 p.m. to 9 p.m.  

  • No event day surcharge or capacity reservation charge 

  • Non-coincident demand charge 

 

Time-of-Use (AL-TOU) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices are higher from 4 p.m. to 9 p.m.  

  • No event day surcharge or capacity reservation charge 

  • On-peak, non-coincident and generation demand charges 

 

Time-of-Use (AL-TOU2) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices are higher from 4 p.m. to 9 p.m.  

  • No event day surcharge or capacity reservation charge 

  • On-peak, non-coincident and generation demand charges 

 

Time-of-Use (DG-R) 

PLAN KEY FEATURES 

  • Three time periods: on-peak, off-peak and super off-peak 

  • Electricity prices are higher from 4 p.m. to 9 p.m.  

  • No event day surcharge or capacity reservation charge 

  • On-peak and non-coincident demand charges