Electricity
Peak Demand
The single highest interval of power draw recorded during a period.
Definition
Peak demand is the maximum rate of electricity consumption (kW) recorded in any measured interval during the billing period.
Detailed explanation
Utilities typically bill demand charges on your peak interval, and grid operators use system-wide peaks to allocate capacity and transmission costs. A brief spike can define your peak for an entire month or year.
Why it matters
Because a short peak can carry outsized cost, identifying and managing peak events is one of the highest-leverage actions a facility can take.
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