Under Demand Metering, what charges does the utility apply?

Under Demand Metering, what charges does the utility apply?

• A. Both electricity use and electricity demand
• B. Only electricity use (kWh)
• C. Only peak demand (kW)
• D. Time-of-use charges only

Answer: (A)

Under Demand Metering, charges come from two parts: the energy you consume and the peak rate at which you draw power. The utility bills you for electricity use in kilowatt-hours (kWh) and also for demand in kilowatts (kW) based on your highest usage during the billing period. This two-part structure reflects both total energy consumed and the strain of your peak demand on the system, encouraging facilities to level out their load. Time-of-use charges describe pricing by time of day, but demand metering adds a demand-based component in addition to an energy charge. Therefore, both electricity use and electricity demand are billed.

Under Demand Metering, charges come from two parts: the energy you consume and the peak rate at which you draw power. The utility bills you for electricity use in kilowatt-hours (kWh) and also for demand in kilowatts (kW) based on your highest usage during the billing period. This two-part structure reflects both total energy consumed and the strain of your peak demand on the system, encouraging facilities to level out their load. Time-of-use charges describe pricing by time of day, but demand metering adds a demand-based component in addition to an energy charge. Therefore, both electricity use and electricity demand are billed.