TXU Energy Understanding Demand

What is demand? Peak demand?
The amount of electricity used by your business, averaged over a 15-minute period. Peak demand is the maximum amount of electricity used by your business at any given time. Generally, the more devices you use at once, the higher your demand. Demand charges are typically billed by your Transmission and Distribution Utility (TDU), and we pass these to you with no markup.

Watch this short video to get a quick and easy overview.

What is annual peak demand?
Annual peak demand is the maximum demand required to operate your business within the last 12 months. When billing demand charges, your TDU uses the higher of 80% of the annual peak demand or the current month’s demand.

How is demand measured?
Demand varies by consumer and time of year. To record demand, a special meter tracks the flow of electricity to a facility over a period of time, usually in 15-minute intervals. The 15-minute interval with the highest demand is recorded and reflected on a monthly bill.

Can demand charges be avoided by switching providers?
Not necessarily. TDU’s assess demand charges on most business, industrial and commercial customers, and bills those charges directly to the customer’s provider. Whether the demand charges are explicitly stated in a customer's bill, bundled into a contracted rate, or otherwise included, depends on each provider’s billing or contract details.

How can I reduce our demand?
Good question. Here are a couple easy tips:

1. Change when equipment is used:
    Reduce the number of devices running at the same time
    Stagger the start-up of your equipment, activating high-intensity devices 15 minutes apart.
2. Change what equipment is used:
    Upgrade to high efficiency equipment.