How the calculation works
Demand charge = billed kW × $/kW. Modeled reduction = (current billed kW − proposed billed kW) × $/kW. Indicative load factor = billing-period kWh ÷ (current billed kW × days × 24) × 100. Billed-demand ratchets can make this an imperfect operating load factor.
Use inputs you can defend
Read the units and use a consistent billing period. Defaults are examples; replace them with values relevant to your decision. If a cost is unknown, the result cannot establish that it is zero. Keep excluded charges in a separate budget and compare the same service scope before judging two alternatives. You can print this page for your own records without creating a website inquiry.
Understand energy versus power
A 10 kW load running for two hours uses 20 kWh. That does not mean its contribution to billed demand is always 10 kW: meters average power over defined intervals, equipment may overlap, and the tariff may apply other tests. Keep the interval length, billing period and units beside the data. A monthly kWh total describes energy consumption but cannot reconstruct the peak on its own.
Find what actually sets billed demand
Request the tariff definition and compare billed kW with the measured peak. A ratchet can use a prior peak; a contract minimum can create a floor. Capacity obligations in supply contracts may depend on different periods from local utility demand charges. Ask which component an operating change can affect and when. Avoid adding projected demand and capacity savings together unless the evidence supports both independently.
Test changes safely
Use interval data to identify simultaneous loads, then evaluate staggered starts, charging controls and schedules with the people responsible for the site. Protect refrigeration, ventilation, medical loads, production quality and comfort. A measured reduction is useful only if it is repeatable and does not shift a larger cost elsewhere. Keep a change log and compare equivalent operating periods; a quiet month after a production shutdown is not proof of a controls project’s benefit.
Keep the inputs private
These calculations run on this page using your browser. They do not save values to local storage, attach figures to a review request or send them to a server. If you choose to ask a question, the review link may select only the inquiry type. Closing or refreshing the page discards your edits. The print button opens your browser’s print dialog.
Sources & further checks
Primary references checked for this guide on October 15, 2026. Follow the source for current tariffs, eligibility and program terms; rates here are not live offers.