Business demand charges

Demand charges and time-of-dates are not new. We’re breaking them out into line items for more rates so you can see when you’re using the most power and energy and how to manage it. 

Energy Wise Rates reflect the cost to generate electricity when demand is high. Electricity is cheaper when demand is low, and more expensive to purchase and produce when demand is high.

Additionally, the rates can incentivize customers to shift their electric usage to periods of lower demand, reducing the need to build additional electric generating facilities.

Business customer rate schedules are determined by the highest level of kilowatt (kW) demand recorded.

These schedules are tiered, with higher demand levels corresponding to different rate structures. If your peak demand exceeds the threshold for a higher kW tier, your account will be placed on the corresponding rate schedule for a minimum of 12 months—even if your demand later decreases.

This approach supports rate stability and reflects the infrastructure required to meet your peak usage. After the 12-month period, your rate may be adjusted based on your updated demand level.

Minimum demand charges are in place to recover the costs associated with maintaining infrastructure and capacity, even when your usage drops temporarily. For business customers, the method used to calculate demand charges depends on the rate schedule assigned to each account.

For example, for accounts with demand under 100 kW, the demand charge is based on the highest 15-minute demand interval during the billing period. For accounts with demand equal to or greater than 100 kW, the calculation method is more complex and includes other factors such a minimum demand calculation and power factor adjustments.

To better understand demand for accounts over 100 kW, please refer to the Utilities Rules and Regulations and Electric Tariffs or contact your account manager for details specific to your account.