I'm having trouble with the application of the demand factor per 220.82(B) as shown in annex D, example D2(a). In this example, the first 10kVA of general load is taken at 100%, while the remainder of the general load is taken at 40%. This much I understand. However, it appears that the 40% demand factor has also been applied to the 9kVA of electric heat. As I interpret 220.82(C)1, the electric heat should be taken at 100%, should it not? Why was the 40% demand factor applied to the electric heat in this example?