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Billing Demand

Demand is the rate at which electricity is being used at any one given time. Billing demand is the customer's maximum power requirement occurring at one point in time during a billing period. If your electric service account is billed under NSP's General Rate (rate code 11), Small Industrial Rate (rate code 21), or Medium Industrial Rate (rate code 22), you are billed on the highest demand established during the billing period. Billing demand is measured in kilowatts (kW) or Kilovolt ampere (kV.A.).

Load Factor

LF =  Energy Consumed in Month (kW.h)
         Peak Demand (kW) x hours in month

Load Factor is the ratio of energy consumed during a given period of time, to that which would have been consumed if the load had operated at peak 100 percent of that time. But few, if any, companies run at 100 percent. For example, if a company's average load factor is at 76 percent, the utility is still be required to have the maximum capacity available to that customer. A high load factor indicates steady usage. A low load factor indicates the recorded demand was not present for very long.


Accumulated demand over a billing period and is measured in kW.h.


More information on Electro Thermal Storage.


A kilowatt (kW) is equal to 1000 Watts. A watt is the basic unit of “resistive” electrical power.


A kilovolt ampere (kV.A) is equal to 1000 Volt-amperes. A volt-ampere is the basic unit of both “resistive” and “reactive” power.


A kilowatt hour (kW.h) is equal to 1000 Watt-hours. This is a measure of the energy consumed by using 1000 watts for one hour.