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We have two commercial general rates that we use most of the time (SS & SL or secondary small and secondary large). The cutoff is a 50 kW of demand to get the demand rate. If you are on the demand rate, you will be charged for the energy used, the maximum or peak demand in the last year, and for your worst power factor during the billing cycle. Under 50 kW of demand and you are charged for energy usage only, the demand and power factor is not measured.

Other electric utilities do it differently. [Linked Image]

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Charlie Eldridge, Indianapolis, Utility Power Guy


Charlie Eldridge, Indianapolis Utility Power Guy