Small manufacturing shop in Mesa on APS Schedule E-32. Owner doesn't understand why demand charges vary so much month to month. Usage is fairly consistent but demand billing ranges from $320 to $580. Can someone explain?
APS small manufacturer - demand charges explained
Demand is based on highest 15-minute peak during the month. Even consistent usage can have different peak patterns. Check what equipment starts up simultaneously.
APS E-32 has seasonal demand rates too. Summer months (May-Oct) have higher demand charges than winter months. That could explain the variation.
That explains it. Demand peaks happen when compressor and main production equipment start together after lunch break. Working on staggering startup times to reduce peak.