What is a demand charge, and how does the PaceController reduce these charges?

The usage portion of an electric bill includes a charge for the energy actually used (kWh). For many commercial customers, there also is a demand charge for the energy that the customer has the capacity to use and the electric company must have available. This additional fee is based on the peak demand, or highest amount of electricity used during the billing period.

Many commercial customers pay a demand charge to reflect the highest load for a period as short as 15 minutes during the course of an entire year. The PaceController is often set to reduce run time as much as 33 percent, thus reducing load comparably. All customers with a demand charge have lower demand, but savings depend on the exact tariff, metering arrangements and load details.