Definition of Demand charge

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TeachMeFinance.com - explain Demand charge



Demand charge

The term 'Demand charge' as it applies to the area of energy can be defined as ' That portion of the consumer's bill for electric service based on the consumer's maximum electric capacity usage and calculated based on the billing demand charges under the applicable rate schedule'.

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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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