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Demand Rates Examples
Light Bulb Example

To understand how demand is measured, let’s look at a simple example:

A 100-watt light bulb, for example, demands 100 watts of electricity when it is turned on. Ten 100-watt light bulbs would demand 1,000 watts (10 x 100 = 1,000) or 1 kilowatt (kW). Therefore, 1 kilowatt of demand is equal to 1,000 watts of electric demand. Kilowatts (kW) measure the rate at which electricity is used.

If this same 1-kilowatt load is operated for one hour, 1 kilowatt-hour (KWh) of electricity is used (1 kilowatt x 1 hour = 1 kilowatt-hour). Kilowatt-hours (kWh) measures the quantity of electricity used over a period of time.

Oven Example

To understand how demand is measured, let’s look at a simple example:

If a 10-kilowatt electric load (like a commercial oven) is operated for 15 minutes, the demand register on the meter will record 10 kW. During this same 15 minutes, the kWh register on the meter will record the use of 2.5 kilowatt-hours (10 kW x ¼ hour = 2.5 kWh). The demand register will retain this 10 kW demand until a higher demand occurs during any subsequent 15-minute interval during the billing month.


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