It isn’t uncommon for us to get asked questions like, “How can I take more control over what I pay for electricity?” or “Are there any ways I can reduce my electric bill?” We understand the need to find these answers because we all have to pay energy bills, too.

One concept that’s getting a lot of attention in the electric power world is time-of-use pricing. People appreciate it because it allows them to adjust their daily activities to keep their energy bills under control.

Time-of-use pricing is based on the fact that wholesale electricity prices are constantly changing. Prices go way up when demand is high, such as on a scorching late-summer afternoon. When demand is lower, like during the overnight hours, prices plummet. It isn’t that the power companies are greedy or trying to take advantage of consumers — it’s that they must buy or generate extra power to meet the demand. The basic economic law of supply and demand says that when demand increases, so does cost.

So, what does that have to do with a business or homeowner like you? Where time-of-use pricing is offered, what the consumer pays depends primarily on the current market prices. Put in practical terms, people with time-of-use pricing pay more when energy’s expensive and less when it’s cheaper.

Many changes lie ahead in how Americans use and pay for energy. Time-of-use pricing is an example for home and business owners who value being rewarded for making wiser energy decisions. Electric utilities like KV REMC also favor this approach because it enhances their ability to maintain dependable electricity sources. That’s what some call a win-win.

How does that put you in control? Suppose you need to do several loads of laundry. Your clothes dryer will use a lot of electricity, so if you dry your clothes in the morning, you will pay less because prices are lower than if you dry them in the late afternoon or early evening when everyone’s air conditioners are working hard. Stop by our Member Appreciation Day and Annual Business Meeting on Thursday, Sept. 26, at the Porter County Fairgrounds for an interactive display.