What the review needs to establish
Compare equipment schedules with interval data and determine which loads can move safely. A reduction outside the relevant billing window may save energy without changing that month’s demand charge.
Information to prepare
- Read the demand and ratchet definitions
- Locate intervals driving billing demand
- Approve operational flexibility
- Measure the post-change billing result
A worked decision example
Hypothetical: a $15/kW demand rate applied to a verified 20 kW reduction in billed demand implies $300 for that demand component. A ratchet or other minimum can reduce or delay the realized invoice effect.
Illustrative inputs explain the decision; they are not an available offer, customer outcome or forecast.
Measure the tariff outcome
Keep the pre-change and post-change billed demand, relevant interval data and tariff calculation. Check whether a historical ratchet or minimum still controls the invoice. A technically successful reduction during one test interval may need several billing periods before it changes the charged amount under the applicable schedule.
How to use the result
Evaluate equipment controls and operating costs against the actual tariff. The demand explorer is an illustration, not a guaranteed charge reduction.
Check whether the peak moves rather than disappears
After a schedule change, inspect the entire relevant period for a replacement peak. Delaying several devices together can simply move the maximum to another interval, while preconditioning can create an earlier maximum. Evaluate permitted operating flexibility, rebound behavior, and the tariff’s counting window before extrapolating a test. The useful output is a before-and-after distribution of relevant intervals with the actual billing calculation, rather than a single favorable screenshot. Keep reduced energy, reduced local demand, and changed system-peak contributions as separately demonstrated effects.
Questions & answers
Is a coincident-peak strategy the same project?
It may use similar equipment but target different intervals and obligations. A site’s monthly maximum and a system-based allocation can diverge. Verify the counting method, reset period, and contract treatment before combining their estimated benefits.
Can storage economics use battery kW alone?
No. Usable duration, dispatch, efficiency, degradation, tariff structure, installation, maintenance, and safety requirements also matter. A short peak test does not establish that a system can sustain the required reduction reliably across billing periods.
Who should approve a load-shifting plan?
Include the people accountable for production, comfort, ventilation, food safety, equipment, and other required services. Finance can assess economics, but a promising tariff calculation should not independently authorize an unsafe or operationally unacceptable change.
Sources & scope
Primary references reviewed October 15, 2026. These sources support the stated concepts; actual tariffs, program rules and signed agreements govern the account. Decision examples and operational worksheets are original educational analysis.
- EIA: electricity prices and factors affecting prices
Price components and variation; not an account-specific quote. - DOE FEMP: Demand and time-based tariff rules
Demand intervals, ratchets, and system-peak distinctions. - EIA: natural gas customer choice programs
Gas choice and utility delivery; local eligibility must be confirmed. - DOE: Distributed resources and microgrids
Storage and system-design context; no equipment sizing recommendation.