Peak Ledger

Peak demand explained

Peak demand is the highest average power you draw over one billing interval. It is an average over the interval, so very short spikes are smoothed, while longer ones are not.

Averaging within the interval

Suppose the interval is 15 minutes. A site runs at 300 kW, but for 2 of those minutes a start-up pulls 800 kW.

2 minutes at 800 kW1,600 kW-minutes
13 minutes at 300 kW3,900 kW-minutes
Interval average: 5,500 / 15367 kW

The spike lifts the interval from 300 kW to about 367 kW. If the same start-up ran for the full 15 minutes, the interval would read 800 kW. That is why interval length matters and why you should check yours.

Why it matters

Billed demand is usually the highest such interval in the month. Finding it takes interval data, not a monthly total.

Frequently asked questions

Is peak demand the same as the highest instant of power?

No. It is the highest interval average, so a very brief spike counts only partly.

What data do I need?

Interval data, such as 15-minute readings, from your utility or meter.

Does peak demand include time-of-use windows?

Some tariffs bill separate peaks for on-peak hours. Check your rate schedule.

Try it on your own numbers

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All numbers on this page are illustrative, including the rate. They are not a real utility tariff. Your bill depends on your utility rate schedule; check it before acting. Peak Ledger gives estimates, not a utility bill or an engineering design.