Critical Peak Pricing (CPP)
A rate structure where electricity prices spike dramatically (5-10x normal) during a few designated critical peak hours per year, typically the hottest summer afternoons. Customers receive advance notice.
Why It Matters
If your utility uses CPP, a battery that discharges during critical peaks can save $100-500 per event. Smart thermostats can pre-cool your home before the peak period begins.
Related Tools
Related Terms
Time-of-Use (TOU) Rate
An electricity pricing structure where rates vary by time of day. Peak hours (usually 4-9 PM) have higher rates.
Peak Demand
The highest rate of electricity consumption (measured in kW) recorded during a billing period. Commercial customers often pay demand charges based on their peak demand.
Demand Response
A program where utilities pay customers to reduce electricity usage during peak demand events, often by cycling AC units, adjusting thermostats, or discharging batteries to the grid.