Utility off-peak pricing is intended to ______.

Utility off-peak pricing is intended to ______.

• A. Shed peak loads to other circuits
• B. Reduce peak loads
• C. Stabilize peak loads
• D. Increase peak loads

Answer: (B)

Off-peak pricing uses lower rates during times of lower demand to encourage customers to shift energy use away from the busiest hours. The goal is to reduce the maximum load the grid must handle at any moment—the peak. When flexible loads are moved to off-peak times, the peak demand decreases, easing the need for expensive peaking generation and reducing grid stress. It doesn’t inherently move loads to other circuits or increase overall consumption; any stabilizing effect comes from a smoother, lower peak.

Off-peak pricing uses lower rates during times of lower demand to encourage customers to shift energy use away from the busiest hours. The goal is to reduce the maximum load the grid must handle at any moment—the peak. When flexible loads are moved to off-peak times, the peak demand decreases, easing the need for expensive peaking generation and reducing grid stress. It doesn’t inherently move loads to other circuits or increase overall consumption; any stabilizing effect comes from a smoother, lower peak.