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Learning about Peak Demand Charges

Tracking Peak Demand is important for commercial and industrial businesses as utilities typically include a "demand charge" when billing large power consumers. The demand charge is based on the Peak Demand that occurs during the billing period.

Demand is calculated as the average amount of power that a business uses over a short time period (usually 15 minutes), and Peak Demand is the highest demand value that occurs in the billing period.

If a utility customer can avoid peaks in their energy usage, they can minimize the cost of their demand charge, even if their total energy consumption remains the same. Contact Schneider Electric for help with reducing your Peak Demand.

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