Palo Alto finance committee backs voluntary residential time-of-use electricity rates

The Palo Alto City Council Finance Committee voted unanimously Sept. 2 to recommend that the full City Council adopt a voluntary residential time-of-use (TOU) electric rate for customers on the E‑1 residential rate schedule, with an effective date of Jan. 1, 2026.

City utilities staff said the opt-in TOU schedule charges different prices depending on when electricity is used: a super off‑peak window during daytime solar production (9 a.m.–3 p.m.), an off‑peak band for other lower‑cost hours, and a peak period from 4 p.m. to 9 p.m. Staff described the schedule as revenue‑neutral relative to existing E‑1 tiered rates if customers do not change their usage patterns, while giving customers an opportunity to lower bills and greenhouse‑gas intensity by shifting discretionary uses to lower‑carbon hours.

The TOU proposal was introduced by Alan Curatorio, director of utilities, and presented by Lisa Belair, senior resource planner, with Carla Daly, assistant director of resources for utilities, answering implementation questions. Staff…