Calculators · commercial electricity
Demand charge calculator
A demand charge bills the highest 15-minute draw of the month in kilowatts, not the energy you used. Type the two figures from your bill and the calculator shows the charge and how it was computed.
Your demand charge
Enter your billed demand and your demand rate; both are printed on the delivery portion of a commercial bill.
Demand charges at a glance
On a Texas commercial bill the demand charge is set by the delivery utility's tariff (Oncor, CenterPoint, AEP Texas or TNMP) and is billed on the peak kilowatts drawn in any 15-minute interval during the month. It does not change when a business switches suppliers: the supply contract prices kilowatt-hours, and the utility prices delivery and demand. Lowering the peak (staggering equipment start-ups, shifting a large load off the busiest hour) is the lever, and it works whatever supply contract the business signs.
An estimate from the figures you enter. Your bill and your utility's tariff are the authoritative source. Voltcheckr LLC is a registered electricity broker (Texas PUCT Broker Registration BR260102), not a utility and not a supplier.
Questions
What is a demand charge?
A charge on the highest average power your meter drew over any 15-minute interval in the billing month, priced per kilowatt by your delivery utility. It rewards a steady load and penalizes a short spike, even one that lasted a quarter of an hour.
Does switching suppliers lower a demand charge?
No. The demand charge is part of the delivery side of the bill and is billed by the utility under its tariff whatever supplier a business chooses. Shopping the supply contract changes the price per kilowatt-hour; lowering the peak changes the demand charge.
Where do I find billed demand on my bill?
Look for a line labeled billed demand, kW demand or a similar term on the delivery or utility portion of the bill, usually next to a rate per kW. If the bill shows only kilowatt-hours, the account may be too small to carry a demand charge at all.
Cite as: Voltcheckr LLC, Demand charge calculator, voltcheckr.com/tools/demand-charge-calculator.
Broker disclosure
Voltcheckr LLC is an independent energy broker (Texas PUCT Broker Registration BR260102), not an energy supplier, with no affiliated supplier. We are paid a referral commission by the supplier you choose, never by you, and you contract directly with that supplier. You can stop using Voltcheckr at any time at no cost. By continuing you acknowledge our broker disclosures.
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