|What is Demand?
“Demand” is the total amount of electricity being used by a customer at any one time. Demand varies from hour to hour, day to day and season to season. This usage, which is expressed in kilowatts (not kilowatt-hours), is called “demand” on the system. For the majority of commercial customers, Edisto Electric Cooperative monitors demand over a 30-minute period. The customer is charged for the highest 30-minute average recorded on the demand meter. After Edisto Electric reads the meter each month, demand is reset to zero and the meter starts over, recording the highest 30-minute average for the next billing period.
What is demand charge?
To illustrate how demand charge can affect an electric bill, look at two simple examples:
• Running a 2kw load for 10 hours would also result in usage of 20kWh but would only accrue a demand of 2kW.
Both examples use the exact same amount of energy (20 kWh) and perform the same amount of work. However, the resulting bills will be very different.
Bill Number 1
Bill Number 2