Demand Charges are dictated by your highest electricity consumption spike in a month. To get a better idea of what peak demand is, think of it this way: if you turned on one 40 watt light bulb for an hour, shut it off, then turned on another 40 watt light bulb for an hour, you would have consumed 80 watt-hours of electricity, but since you only had one bulb on at a time, your peak demand would be only 40 watts. If you turn both 40 watt bulbs at the same time and leave them both on for an hour, your energy consumption after an hour would still be 80 watt-hours, but your peak demand would increase to 80 watts. Your usage bill would be the same, but your demand charge would be double.

The same applies for heating and air conditioning (HVAC). If your facility has more than one unit the example of the light bulb applies. 

Though it is certainly not practical to keep only a poriton of the AC units running because it won't be comfortable inside the building, we offer a clever solution to manage the HVAC scheduling that can keep you comfortable while reducing your peak demand.