Electrical
Utility peak demand charge
Price a supplied billing demand under explicit tariff and ratchet assumptions.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
bill demand=max(measured peak,entered ratchet floor); charge=bill demand*rate.
Only the explicitly entered maximum-of-peak-and-floor rule is modeled. Does not interpret a utility contract, predict peaks or retrieve tariffs. Energy charges are separate.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Measured billing-period peak demand (kW): Use matching records or a clearly identified owner assumption for measured billing-period peak demand, in the displayed unit and the stated row/period scope.
- Entered tariff ratchet floor (kW): Already interpreted USER-SUPPLIED tariff ratchet floor; no applicable tariff rule inferred.
- Demand price per kW for billing period (selected currency): Demand charge per billable kW, not energy price per kWh.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Billing demand under entered rule is 120.00 kW for the illustrative inputs below.
Example inputs
- Measured billing-period peak demand: 100.00 kW
- Entered tariff ratchet floor: 120.00 kW
- Demand price per kW for billing period: $10.00
- Billing demand under entered rule
- 120.00 kW
- Period demand charge
- $1,200.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Price a supplied billing demand under explicit tariff and ratchet assumptions.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.