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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:
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.