Here in southern California we get another layer of pricing in addition to time of year/time of day - we have usage tiers and as you use more power up to certain milestones each kw/h after that becomes more expensive. My electricity bill takes complex math to figure out.
Not just a California thing, seen that all over.
Where I'm at now though is a bit odd, in that on my non-Summer base rate the lower tiers are HIGHER in price - I've seen your way a lot more often.
Ah yes. True monopoly pricing. "We can't have monopolies because they'll be able to charge whatever they want!!!"
"Well, except for true monopolies created by force of law! They'll be able to charge whatever they want!!"
Brilliant.