Smart meters and Xcel’s Time-of-Use (TOU) billing are changing the way Coloradans pay for electricity. At Allstar Electrical, our goal is to make sure you get the best price and value for your energy. That starts with understanding how Xcel’s billing works, the choices available to you, and which plan might fit your household or business best. By maximizing awareness of your options, we empower you to pick what’s right for your needs—whether that’s sticking with TOU or opting for a fixed, flat rate.

What Time-of-Use (TOU) Means (and Why It Exists)
 

TOU charges more during the hours when the grid is most stressed and less the rest of the time. Colorado regulators approved changes that shift the expensive hours later into the evening and remove “mid-peak,” starting no earlier than October 2025. The aim is to nudge usage out of peak hours and lower long-term system costs.

Today’s hours (until the change takes effect)

• On-Peak: 3–7 p.m. (weekdays, non-holidays)
• Mid-Peak: 1–3 p.m. (weekdays)
• Off-Peak: All other hours + weekends/holidays

From October 2025 onward (approved structure)

• On-Peak: 5–9 p.m. (weekdays, non-holidays)
• Off-Peak: All other hours (no mid-peak)
• Seasons still matter: summer (Jun 1–Sep 30) vs winter (Oct 1–May 31)

What Are the Price Levels?
 

Exact cents/kWh change periodically. Recent guidance indicates:

• Summer: on-peak ≈ $0.21/kWh, off-peak ≈ $0.07/kWh
• Winter: on-peak ≈ $0.18/kWh, off-peak ≈ $0.06/kWh
• Flat (Opt-Out): approx $0.13/kWh (summer) and $0.11/kWh (winter), same price all day

These are illustrative figures; always confirm with Xcel’s current tariff tables.

Can I Opt Out of TOU?
 

Yes. Most residential customers with smart meters are defaulted to TOU, but you can switch to a Flat Rate by calling Xcel Energy at 800-895-4999. If you refuse a smart meter entirely, Xcel may charge manual-meter reading fees.

Constant-Load Homes: TOU vs Flat (Real-World Math)
 

If you run equipment that can’t avoid peak hours—think pool pumps running 24×7, server racks, or medical gear—does TOU still help?

Assumptions (illustrative):

• TOU Summer: $0.21/kWh on-peak, $0.07/kWh off-peak
• TOU Winter: $0.18/kWh on-peak, $0.06/kWh off-peak
• Flat (Opt-Out): $0.13/kWh summer, $0.11/kWh winter
• On-peak window (from Oct 2025): 5–9 p.m. weekdays (~92 hrs/month on-peak)

Example A — 1.0 kW constant load (≈ modest server + networking)
 

• July (summer): TOU $64.96 vs Flat $96.72 → TOU saves ~$31.76
• January (winter): TOU $55.20 vs Flat $81.84 → TOU saves ~$26.64

Example B — 2.0 kW constant load (≈ pool pump + servers)
 

• July: TOU $129.92 vs Flat $193.44 → TOU saves ~$63.52
• January: TOU $110.40 vs Flat $163.68 → TOU saves ~$53.28

Bottom line: For steady, round-the-clock loads, TOU usually beats Flat because most hours are off-peak. The Flat Rate is better if your household does most usage during peak evening hours or you prefer simplicity over active management.

What If I Want “Set-and-Forget” Simplicity?
 

• Choose Flat Rate for one price all day (you’ll likely pay more than off-peak but less than on-peak).
• Choose TOU if you can shift flexible loads (laundry, EV charging, dishwashers) outside 5–9 p.m.—or if your home has a steady base load that benefits from off-peak pricing.

Seasonal Changes (and Why Your Bill May Move Around)
 

• Summer (Jun–Sep): highest on-peak prices.
• Winter (Oct–May): lower overall, but still an evening peak.
• Bills can shift with your habits, weather, and seasonal rates.

Conclusion
 

At Allstar Electrical, we want our customers to get the best value possible from their electricity. Whether you stick with Time-of-Use or switch to a Flat Rate, the right choice depends on how you use power in your home or business. If you’d like help evaluating your usage—or if you want to explore smart panels, EV chargers, or automation tools that help avoid peak rates—we’re here to make sure your home is safe, modern, and cost-efficient.