Jack6591
Active Member
I've always looked at electrical billing like a speedometer (demand billing) and an odometer (kilowatt hour (kwh)).
The kwh billing is simply the amount of power consumed.
The demand bill is like a speedometer, it is an instantaneous measurement (actually measured in fifteen minute blocks), of peak power consumption. The idea being that the utility must invest in the equipment and infrastructure to meet the peak demand even if it's for a very short period of time.
Demand billing is a substantive part of most industrial and many commercial businesses electric bill. The ability to shave demand charges will be a tremendous business opportunity. Expect the utilities to push back hard. It's their bread and butter.
The kwh billing is simply the amount of power consumed.
The demand bill is like a speedometer, it is an instantaneous measurement (actually measured in fifteen minute blocks), of peak power consumption. The idea being that the utility must invest in the equipment and infrastructure to meet the peak demand even if it's for a very short period of time.
Demand billing is a substantive part of most industrial and many commercial businesses electric bill. The ability to shave demand charges will be a tremendous business opportunity. Expect the utilities to push back hard. It's their bread and butter.
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