bob said:
If your utility has a rate structure similar to the one I am familiar with for commercial customers, the first block of KWH's are billed at a different rate than the second block of KWH's. The block is dependent on the KW demand. Rate Example:
first 250 KWH's per KW billing capacity is billed at 4.5 cents/kwh. The next block is for KWH's all over 250 KWH's per KW is billed at 2.5 cents per KWH.
For the period in April you show the max demand is 180 kw. As an example,
if you assume that this is the billing demand, then
Block 1 is 250 KWH x 180 KW = 45000 KWH's billed at 4.5 cents per KWH. All KWH's over 45000 kwh's would be billed at 2.5 cents per KWH. A higher KW demand would cause Block 1 to have a higher number of KWH's being billed at the higher rate. The cost for the KW demand is additional.
I am not sure if your measuring device can be programmed to calculate the bill correctly.
Utility Charlie
Are you familiar with this type of billing?
I believe you have a typo. The "250 KWH x 180 KW = 45000 KWH's" should be "250 h x 180 kW = 45000 kWh"
The rate you are describing is called an hours use of demand (HUD) rate. It is a method of billing based on load factor across a range of kW sizes. It converts the usage into hours, splits the hours into separate billing buckets, then converts each bucket of hours back into kWh for billing. Each bucket has a different price. Sometimes the kWh in the first bucket is further divided into smaller kWh sub-buckets.
The idea is that, on average, there are 730 hours in a month. If you convert the usage into equivalent hours, you can bill based on load factor. The higher the load factor, the higher the HUD. You usually have a declining rate and give a price break for higher load factors. This is because generation is cheaper, on average, for high load factor loads because you can use base load generation plants..
A low load factor customer (1 shift operation, 15-30% LF) would generally have all of their usage billed in the 1st 200 hours bucket. A mid load factor customer (2-shift operation, 30-55% LF) would have some usage in the next bucket as well (200-400 hours). A high load factor customer (3-shift operation or grocery store, over 55% LF) would have usage in the remaining HUD buckets (400-600 and over 600 hours). Usually, only continuous loads like grocery stores, distribution centers, and some manufacturing facilities can reach the 70-80-90% load factor range (511-584-657 hours use of demand)
To convert to HUD you divide the kWh by kW (kWh/kW=h). What this answers is this: If the customer were to start the month using the maximum demand, how many hours would they have to run to use the kWh that were metered? This is why it is called an hours use of demand or HUD rate.
All that being said, I would be surprised if your meter could bill a HUD rate. There are ways to convert the HUD rate into a demand and energy calculation.