time-of-use (TOU) rate

A rate with different unit prices for usage during different blocks of time, usually for a 24-hour period. TOU rates reflect the average cost of generating and delivering power during those time periods. Daily pricing blocks might include an on-peak, mid-peak, and off-peak price. In a TOU rate structure, higher prices are charged during utility peak-load times. Such rates can provide an incentive for consumers to curb power use during peak times.