TOD encourages customers to shift energy use away from peak hours, reducing strain on the grid and lowering reliance on fossil fuels. This helps decrease greenhouse gas emissions and supports Concord’s commitment to a cleaner, more sustainable energy future. Time-of-Day rates were one of the primary goals outlined under the Energy section of the Sustainable Concord Climate Action and Resilience Plan.

Yes, reducing demand during peak hours helps maintain system reliability and prevents strain on the grid.

To understand how Time-of-Day (TOD) saves everyone money, it helps to look at how our utility is billed by the regional grid operator. A significant portion of the town’s total energy costs isn’t based on the total amount of electricity we use, but rather on how much we use during the region’s busiest hour.

The Concept of the “Regional Peak”

Every month and every year, the regional power grid hits a “peak” – the single hour when electricity demand is at its absolute highest across the entire state or region. Our utility must pay a share of the regional grid’s costs based on the town’s electricity demand at that specific moment. This is often referred to as the Coincident Peak.

Where the Savings Come From

By using TOD rates to encourage residents to shift their usage (like running dishwashers or charging EVs) to off-peak hours, the town shaves its demand during those critical peak windows. This reduces two major expenses:

• Capacity Payments: These are fees paid to power plants to ensure there is enough “standing” electricity available to meet the highest possible demand. If our town’s peak demand is lower, our mandatory capacity obligation, and its associated cost, drops.

• Transmission Charges: These are the costs of moving high volumes of electricity over long-distance high-voltage lines. Like a toll road, these charges are highest when the traffic is heaviest. Reducing our peak usage reduces these infrastructure fees.

The Community Effect

Because these capacity and transmission costs are fixed expenses that the utility must recover through its rates, they are eventually spread across every customer’s bill.

• When CMLP’s peak is high: The utility’s costs go up, and eventually, everyone’s rates must rise to cover those payments.

• When CMLP’s peak is low: The utility saves big money in regional fees. These savings allow the utility to keep base rates lower for all customers, even those who are not personally enrolled in the TOD program.

By flattening CMLP’s overall demand curve, we reduce the expensive regional surcharges that would otherwise drive up electricity rates for the entire community.

Pros:

• Potential Cost Savings: You can lower your bill by shifting electricity usage to off-peak periods.
• Environmental Benefits: Shifting electricity usage to off-peak periods reduces carbon emissions.
• Grid Reliability: Reducing demand during peak periods helps prevent grid overload and reduces the need for costly infrastructure upgrades.
• Usage Transparency: With the advanced meters CMLP installed in 2024 and SmartHub, you are able to better monitor and manage your energy usage.
• Incentivizes Smart Technology: TOD rates encourage the adoption of energy-efficient devices like smart thermostats and timers for appliances.

Cons:

• Behavioral Adjustment: You may need to change habits and schedule energy-intensive activities during off-peak hours to benefit.
• Higher Peak Costs: Electricity during Peak hours is more expensive under TOD rates, which can increase costs if usage isn’t adjusted.
• Inconvenience for Some: Shifting activities such as laundry, cooking, or EV charging to off-peak hours may be challenging for those with inflexible schedules.