Explanation of Demand

Demand Meters

Many Commercial Customers are billed on rates that provide for a capacity charge.
A capacity charge represents the demand of the average rate of consumption of electric power used by the customer, measured in kilowatts, during any one 15-minute interval throughout a billing cycle.

When a demand meter is required

• Commercial and Industrial customers have a sporadic requirement for electricity and are such that the demand needs to be measured.


• Commercial and Industrial customers require a great amount of power, not necessariliy for a long period of time. However, power has to be available when needed. Thus we measure the ability to provide on demand.

How demand is calculated

Click to view how demand is calculated

How can I decrease my demand charge?

• Make sure your equipment is correctly sized for the task at hand.


• Make sure worn equipment is repaired.


• Stagger your usage. (i.e) Turn on one machine, wait twenty minutes and then turn on the next machine.

Electric Meter

The electric meter records use in watt-hours. Your electric bill is based on how many kilowatt-hours (kWh) of electricity are used during the billing period.

• An electric meter is a continuous measuring device.


• To calculate the amount of energy used during a particular period (a day, a week or a month), subtract the read taken at the beginning of the period from the reading at the end of the period.


• This is similar to what you would do with your car's odometer to figure the length of a trip. The difference will be the total energy you have used.


• While some meters are digital, most meters have four or five dials.


• The dials move alternately in clockwise and counterclockwise fashion.


• When a hand on a dial is between numbers, always use the smaller number (remembering to use 9 when the hand is between 9 and 0).

Example meter dials are shown below to clarify how a meter is read: