How are TOU rates developed?

HL&P’s rate consultant used historical wholesale power pricing and market power futures along with the company’s historical energy demands to determine the true cost of power over the course of a day and seasonally. Market power supply and transmission costs are driven by supply and demand. Utility power supply costs are higher in the late afternoon and evening when people return home. HL&P’s wholesale power portfolio includes up to 15% market power when demand exceeds planned resources.