Definition
•Electric demand is a measure of the average rate at which your facility consumes electricity in a 15-minute interval.
•In general, the more electrical devices you operate at one time, the higher your demand.
•In most cases, demand charges are assessed as a component of your electric bill for business, commercial and industrial customers
Demand Is Important
•Your Transmission and Distribution Utility (TDU) must design its equipment to handle the maximum amount of electricity expected at one time.
•Electric lines, transformers, substations, and other equipment are sized to supply all of the electricity you need at once, whether you require that amount for a single 15-minute period or for months.
•Demand determines the investment that the TDU must make to deliver electricity to a facility effectively. That investment is recovered by allocating demand charges according to each customer's usage.
The Difference Between Demand and Consumption
•Demand is how much power you require at a single point in time, measured in kilowatts (kW).
•Consumption is how much energy you use over a period of time, measured in kilowatt-hours (kWh).
•Example: assume ten lights