Demand refers to the amount of electrical power being used at a given time. While the energy charge is based on the volume of electricity used in kilowatt hours (kWh), demand is based on the intensity at which energy is used (or the “demand” one puts on the grid) in kilowatts (kW).
Demand charges will be a monthly charge based on “peak demand,” or the maximum number of kilowatts a customer used in an hour, measured in 15-minute increments. In the summer months of June 1 through September 30, demand will be billed based on peak demand between 3 p.m. to 7 p.m. The rest of the year, the billed demand would be based on whenever peak demand was reached during the month. Non-summer demand charges will be lower than during the four summer months.