May I beg the favor of a reference source that confirms that equation? I submit that the NEC does not define the phrase, and I have not found a clear "industry standard" definition either.
Second question: What is "time" in your equation? That is,
- Is it the amount of time the plant is in operation?
- Is it the amount of time the plant is at the peak power value?
- Is the total amount of time during which the energy value was measured (in other words, if the "energy" number was used during one month, then is the "time" number the total hours in a month)?
The closest thing I have found to a definition of "load factor" was "average divided by peak." That is the same as your equation, if the "time" number comes from my item 3 above.
I will give you some information it may help you.
Load factor: It is defined as the ratio of average load to maximum demand. Load factors and demand factors are always less than unity. Load factors play an important part on the cost of generation per unit. The higher the load fctor the less will be the cost of generation per unit for the same maximum.
Load factor = Average load / Maximum demand
not Peak
The example which is given by mivey is not load factor. it is called capacity factor or plant factor.
Plant or capacity factor: it is defined as the ratio of actual energy produced in kilowatt hours(kWh) to the maimum poosible energy that could have been produced during the same period
Plant Capacity Factor = Energy / (C x t)
E: Energy produced (kWh) in a given period
C: Capacity of the plant in kW
t: total number of hours in the given period
Here "C" can be equal or higher as mivey has pointed than the load.
Note: According to load factor formula, it is Power ( MW or kW ) not energy (kWh or MWh)
Where you have seen this
"load factor" was "average divided by peak."