Frequently Asked Questions: What is Demand?
Terms We Use Following are key terms that can help you understand electric demand: Kilowatt (kW) Rate of using electricity (Demand). Example: Ten 100-watt lamps consume electricity at the rate of 1,000 watts, or 1 kilowatt (kW). Kilowatt-Hour (kWh) Electrical energy actually used (Energy). Example: Ten 100-watt lamps, when on for one hour, consume 1 kilowatt-hour (kWh) (i.e., 10 lamps x 100 watts x 1 hour = 1 kWh). Load Factor A measure of energy use equal to the ratio of total kilowatt-hours (kWh) used in a given time period divided by the peak kilowatt (kW) use during that time, multiplied by the hours in the time period. Example: (Actual kWh used) / (peak kW x Time) Load factor expresses how well or poorly a given electric system is being utilized. Electricity users strive for a better load factor, or the most efficient usage of their installed electric equipment. The closer to 1 a given load factor, the better the system’s efficiency. Defining Demand Customers We install a demand m
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