What is annual peak demand?
Annual peak demand is the maximum demand required to operate your business within the last 12 months. Your Transmission and Distribution Utility (TDU) uses the higher of 80% of the annual peak demand or the current month's demand to bill the demand charges.

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

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 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. The TDU assesses demand charges on most business, industrial and commercial customers, and bills those charges directly to the customer's Retail Electricity Provider (REP). Whether the demand charges are explicitly stated in a customer's bill, bundled into a contracted rate, or otherwise included, depends on each REP's billing or contract details.

How to reduce your demand:
  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.

     

Demand: A Case Study

 81x81 Church   Problem: A small Dallas church faced large electricity bills due to high peak demand charges.
 Chart    

Impact: Their TDU delivery charges were 400% more than their electricity charges.

 A/C Fan   Solution: Cycle or stagger the start-up of high intensity devices and equipment by 15 minutes.
 Savings piggy bank   Result: After a few months of cycling, the church saw savings on their electricity bill, and a 60% drop in demand charges.