What is Tier 2 energy usage?

Energy used within your Baseline Allowance is billed at the lowest price. Energy used above the Baseline Allowance is considered Tier 2 and is billed at a higher price. If your energy use exceeds four times the Baseline Allowance during your monthly billing cycle, a High Usage Surcharge will be applied.

What is the difference between Tier 1 and Tier 2 PGE?

For residential tiered rates, Tier 1 includes the baseline quantity and Tier 2 extends from 101% of baseline to 400% of baseline. Any usage over 400% of baseline is subject to the High Usage Surcharge for that billing period. PG&E also offers electric Time-of Use-rates for residential customers.

What is a tiered rate system for electric companies?

Tiered utility rates are a structure in which the more electricity you use, the higher your rate gets. You are allowed a certain amount of power (kilowatt hours) in each tier. Once you’ve exceeded the amount in the tier, you move into the next highest tier.

What is a tiered-rate system and what is its purpose?

Tiered-rate accounts work by offering different, or “tiered,” rates of interest for different levels of account savings, escalating the rates with the balance. For instance, a bank might offer five fixed-interest-rate tiers on its money-market account, all linked to how much you deposit init.

What is a tiered-rate?

Tiered-rate accounts are deposit accounts that pay different rates of interest at different balance tiers. Typically, the higher your balance, the higher the interest rate you may earn. There may be a maximum interest rate you can earn on deposits.

What is a tiered rate?

A tiered-rate account is a bank account that pays different rates of interest, depending on the amount of the funds held in it. It can be any type of account but usually is either a money market or a savings account.

Is TOU or tiered cheaper?

With TOU, the price you pay depends on when you use electricity. With Tiered prices, you can use a certain amount of electricity each month at a lower price. Once that limit is exceeded, a higher price applies. If you want to continue paying TOU prices, no action is required.