Your peak usage demand is the one hour of the month when your energy used during on-peak hours, Monday - Friday is at its highest. We then average the usage for that one hour and that is the kW we use to calculate your monthly peak usage demand charge.
Let's look at an example of two families — with identical appliances — who have different peak usage demand based on how many major appliances they're using at the same time, for one hour,
during on-peak hours, Monday - Friday.
The Lara family, who puts a priority on comfort and
convenience, comes home
from work and during
one on-peak hour:
The Smith family, who is more
concerned with saving money,
comes home from work and
during one on-peak hour:
Then during off-peak hours they:
Examples are based on 1,800 sq. ft. homes during a typical summer evening. Kilowatt (kW) numbers are based on typical use during one hour during on-peak hours, Monday-Friday.
Since the Smith family chose to not run their electric dryer and pool pump during the same hour they were running their AC and oven during an on-peak hour and ran them during off-peak hours instead, their peak usage demand is lower than the Lara family's and their peak usage demand charge will be lower as well.