Palo Alto outlines phased rollout and marketing plan for voluntary time‑of‑use rate
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Summary
City staff proposed a phased test of a voluntary time‑of‑use (TOU) rate in 2026 with targeted outreach to high‑use customers, an FAQ library, and bill inserts; commissioners suggested clearer messaging and faster enrollment.
The Utilities Advisory Commission reviewed city plans to pilot and then offer a voluntary time‑of‑use (TOU) electricity rate designed to encourage customers to shift usage into daytime solar hours.
Catherine Albert, communications manager for Palo Alto Utilities, told commissioners the city plans a phased rollout beginning with small test cohorts in January 2026 (about 10 customers per month) to validate customer experience and messaging. If testing goes well, staff would expand to about 50 customers per month with full enrollment around July 2026. Staff estimated first‑year uptake after full enrollment at roughly 100–500 customers, based on other utilities' voluntary uptake rates.
Albert said the communications plan emphasizes simple, tailored messages about potential bill savings and environmental benefits of shifting usage into the 9 a.m.–3 p.m. solar production window and out of the 4 p.m.–9 p.m. evening peak. The plan includes FAQs, bill inserts, targeted outreach to high‑use customers and EV drivers, customer service support and a rate calculator for personalized analysis.
Commissioners gave feedback on message clarity and audience targeting. Commissioner Scharf recommended testing visual diagrams (rather than photos) and ensuring copy clearly benchmarks savings against current rates so residents can see potential dollar impacts. Commissioners also warned that solar customers without batteries are less likely to benefit from a TOU offer and noted the city’s billing system may limit which solar customers can be enrolled immediately. Staff said AMI rollout and billing updates will improve the city's ability to analyze customer data and present personalized TOU comparisons.
Several commissioners suggested emphasizing specific actions (for example, delay EV charging or program dishwashers to start outside the 4–9 p.m. window) and making the link between daylight solar generation and lower grid emissions explicit. Staff said the materials in the packet were drafts and that they will refine messaging, visuals and the outreach cadence based on commissioner input.
No policy vote was taken; staff sought feedback on the communications approach and timing and will return with refined materials during the pilot phase.