Small retail shop in Spokane on Avista Schedule 25. They have a 75% ratchet clause but owner thinks they're being overcharged. Current demand is 18kW but billing demand shows 22kW. Is this correct?
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Avista small retail - demand ratchet confusion
Sounds right. 75% ratchet means billing demand can't drop below 75% of highest demand in past 11 months. If peak was 29kW, billing demand floors at 22kW (75% of 29kW).
Ratchet clauses protect utilities from customers who downsize operations but keep service connected. Common on small commercial accounts.
That makes sense now. Peak demand hit 29kW during a heat wave in August 2014. So they're paying for at least 22kW until August 2015. Thanks for clarifying.