Demand charges are a major component of many commercial electricity bills and are based on the highest level of power a building draws during a short interval, often fifteen or thirty minutes. Because utilities must maintain enough generation and grid capacity to supply electricity whenever it is needed, even a brief spike in demand can determine a large portion of a monthly bill. The articles in this section explain what demand charges actually measure, how utilities calculate peak demand, and why short intervals of high electricity use can dominate commercial electricity costs.
10 articlesUpdated MAR 12 2026
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