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How your Texas business uses electricity this summer will impact your bill for the next year.
If you have a demand meter, your peak demand charges for the next calendar year will be established during the grid’s highest demand days in a 4 month period. That’s known as your 4 coincident peaks, or 4CP.
In this article, we’ll explain what 4CP is and how it impacts your business. Then we’ll give you tips on how to lower your demand charges based on this knowledge.
You shopped for the lowest rate per kWh for your business. So what’s this other charge on your bill?
Business customers often pay a commercial electricity demand charge in addition to the cost per kWh. A demand charge is a fee based on the highest amount of power a customer draws during any 15 minute interval. Demand charges are established annually, and can add 30% or more to your electricity bill.
Read on to find out what is a demand charge, how demand charges are set, typical load factor by type of business and how your load factor impacts your demand.
Read More about Understanding Load Factor and Commercial Demand Charges
