Many commercial electric customers pay the lions share of their bill based on their peak demand.
This is analogous to paying your water bill not based on how much water you use, but rather based on how fast you use it.
The demand charges for a given month are based on the highest single 15 minute period of peak demand.
"Demand Mitigation" is a term used for various methods of lowering a given utility customers peak demand number. This can be as simple as, in a building with multiple large HVAC units, ensuring that the units do not all run at the same time. Since a correctly sized system will only run for a fraction of any given hour (1/3 to 1/2 is typical) simply staging the systems to each run one after the other, can result in significant financial savings without any change in building comfort.
Our engineering staff can support the latest in Demand Mitigation Strategy and Technology. This support is typically available on a contractual hourly basis. Please contact us to discuss a demand mitigation arrangement.