Rate-Based Minimum Scenarios

Below are three scenarios that demonstrate use of the Demand-Based Minimum fields:

Example 1:

Use a base charge of $25.00, plus $7.50 per kW of billing demand in excess of 10 kW.

The fields would be completed as follows:

  • Charge Minimum: $25.00.
  • Demand Type: Demand.
  • Demand Above: 10 kW.
  • Rate: $7.50.
  • Never Less Than: Blank.

Example 2:

Use a base charge of $7.25, plus $4.25 for each kW of billing demand in excess of 5 kW. The total charge may not be less than $21.50.

The fields would be completed as follows:

  • Charge Minimum: $7.25.
  • Demand Type: Demand.
  • Demand Above: 5 kW.
  • Rate: $4.25.
  • Never Less Than: $21.50.

Example 3:

Use a rate of $1.67 per kW per month of Contract Demand.

The fields would be completed as follows:

  • Charge Minimum: Blank.
  • Demand Type: Contract Demand.
  • Demand Above: Blank.
  • Rate: 1.67.
  • Never Less Than: Blank.