When Electricity Is Most Expensive — by State

How Peak Electricity Pricing Works

• On-peak vs. off-peak differential: During high-demand hours (typically 3pm–9pm on weekdays), the grid is under the most stress — meaning higher wholesale prices. TOU plans pass this cost signal to you through higher supply rates during those windows and lower rates at night and on weekends.
• Typical on-peak rate premium: In states with active TOU pricing (California, New York, Texas, Arizona), on-peak rates typically run 25–40¢/kWh while off-peak rates may be 10–16¢/kWh. The differential can be even larger in summer when air conditioning drives peak demand to its highest.
• Seasonal shifts in peak windows: Summer peak hours often start earlier (2pm or 3pm) due to sustained air conditioning load, and the window can extend to 8pm or 9pm. Winter on-peak windows tend to be shorter and may shift to morning hours in some northern states with electric heating loads.
• TOU plans require active management to benefit. A TOU plan only saves you money if you shift usage patterns — running the dishwasher, laundry, EV charging, or pool equipment during off-peak hours. If most of your electricity use is during the day when you're not home, a flat-rate plan may be cheaper.
• Smart devices make shifting easier. Programmable smart thermostats, EV chargers with time-based scheduling, and smart plugs with timers let you automate high-energy tasks to run during off-peak windows — no lifestyle change required, just better automation.

What LeanBills Does for Your Electric Bill