Payback Period

Have you heard someone mention tiered electricity rates and wondered what on earth they are talking about? Well read on and we will tell you all you need to know to understand what they are and how they work. First of all not every utility uses a tiered rate system in fact, California is one of the few states that has “inverted tier rates,” also called baseline rates. So let's take PG&E for example, they operate on a five tier system that ranges in price from $0.12 to $0.50.