Electrical Demand Charges – What’s That?
Facilities Related Demand Charges and Summertime Related Demand Charges; what are they and why are they so much? California commercial customers incur monthly demand charges on their electric bills. These charges can be over 50% of the monthly bill in the summer. If you are a GS-2 or GS-3 commercial account, you need to look at your bills.
Electrical demand is the rate (speed) at which you use the electricity, measured in kilowatts (KW). As opposed to the amount of electricity used, kilowatthours (KWh). Peaks in electrical demand are caused by the simutaneous operation of electrical equipment like air conditioners. The electrical demand (KW) is measured and recorded during the month, and the highest 15 minute average peak is billed as demand charges. Southern California Edison currently charges $31.37 per KW during the summertime. In perspective, a 5 tonne air conditioner drawing 4.5 KW incurs a demand charge of $140.27; while at $0.08/KWh it only cost $0.36 per hour to run the same air conditioner. Thus, the penalty is heavy if an air conditioner turns on at the same time as another.
All is not lost. Electrical peak demand control can minimize these charges and tame high electric bills. Power Planet offers demand controllers which can balance a building’s loads by allowing loads, such as, air conditioners and electrical heating to coordinate their on time, thus minimizing peaks in demand.
Get it under control and pay for the electricity that you use, not the way you use the electricity.
Tags: demand charges, electric bills, electrical, peak demand