How electricity demand affects your bill

Most business customers have a demand component to their electric bill. Demand is your rate of electricity use at any given moment. The electric meter at your location records and averages demand in 15-minute intervals.
In a 30-day period, the meter records electricity demand 2,880 times. In determining your bill, we take the highest recorded demand, rounded to the nearest kilowatt or half-kilowatt, depending on your rate schedule.
Your bill is based on a combination of how much electricity you used for the entire month and what your highest recorded demand was during the month. You can save money by reducing your maximum demand, your total electricity use, or both.
Some tips for reducing demand:

1. Stagger the start-up of equipment that is controlled by thermostat, including process heating and cooling equipment. Wait until the first piece of equipment has reached its set point before starting the next unit.
2. If possible, avoid simultaneous operation of high wattage equipment.
You must use suggestions 1 and 2 consistently throughout the billing period to reduce your peak demand.
3. Buy the most energy-efficient equipment and lighting for your business.
4. Buy correctly sized appliances and equipment based on your needs.