demand charges explained
Demand charges are a cost on your electric bill which are based on the greatest amount of electricity used in any half hour period during the billing period. The charges are represented as a dollar per kilowatt (kW) and is applied to your maximum kW demand also know as the highest rate at which you required energy. Demand is the rate of how fast electricity is delivered to you over a half hour period of time.
For example, if you have all your appliances running at your house at the same time your electric meter would spin forward really fast therefore your demand charges would skyrocket. Demand charges represent the rate of how fast you are consuming electricity.