General Service Non-Demand (GSND)
- This classification is intended for lower-usage businesses whose electric demand has not equaled or exceeded 50 kW in more than two periods out of the 12 most recent billing periods. These customers are not charged for demand.
General Service Demand (GSD) Secondary
- This classification is for higher-usage customers whose monthly kW demand equals or exceeds 50 kW for three or more periods out of the 12 most recent billing periods. Because this rate option includes a demand component, energy prices are lower than those of the GSND rate option. Customers with demands less than 50 kW have the option of choosing this rate provided they are willing to remain on it for 12 consecutive months and pay for a minimum of 25 kW per month.
How do I know if I am a Demand or Non-Demand customer?
You can determine whether you are a demand or non-demand customer by looking at your monthly bill. Below are two examples to help:
How can I lower my Demand charges?
Here are some ways to manage or lower your demand charges:
- Schedule a FREE Business Energy Survey. An OUC Business Energy Auditor will visit your business and make recommendations based on your needs.
- Your Business Energy Auditor can help you determine if you qualify to move to a different rate class. Electricity use is charged differently depending on the rate class.
What is demand (kW) vs. energy (kWh)?
Demand is the maximum amount of power, measured in kilowatts (kW), consumed at one point in time. Energy is the total amount of electricity consumed by the customer during the billing period, and is measured in Kilowatt-Hours (kWh).
It’s similar to the relationship between a car’s speed and its odometer. The total distance the car travels (energy) is recorded by the odometer. The car will speed up and slow down, but as long as it is traveling, the odometer will continue to turn. The higher the speed of the car (demand), the faster the odometer turns.
How is peak demand determined?
Most businesses have a meter that tracks and records demand in 15-minute intervals for each billing period. A customer is billed for the highest 15-minute kW demanded used by their facility, known as peak demand. OUC must be able to provide that level of power in order for the customer’s equipment to run at its highest operating need.
How does demand and energy affect billing?
Demand is not determined by the amount of time your equipment is running; it is a function of how much power your equipment requires and how much of your equipment is running at a given time. The more equipment that operates simultaneously, the higher the demand.
Therefore, if your business requires sizeable peaks of energy, even if your equipment is only running for a short period of time, the amount of power it consumes (energy), at a point in time affects your bill. OUC must be able to supply the electricity and have the infrastructure in place to deliver the energy to you, such as power plants and distribution system.