Can someone explain coincident vs non-coincident demand charges? I have a client with both on their bill and I'm not sure I understand the difference. This is with APS in Arizona. The coincident demand charge is much higher per kW.
Question about coincident demand charges
Thanks everyone. This helps a lot. My client is a manufacturing facility that could potentially adjust production schedules. I'll work with them on identifying those critical peak periods and see if we can implement some load management strategies.
Lisa's explanation is correct. Brett, with APS the coincident peak is typically set during June-August weekday afternoons. If your client can shift load away from those critical peak hours, they can reduce the coincident demand charge significantly.
Marcus is right about the timing. Brett, APS usually announces their critical peak periods in advance during summer months. Load shifting during those specific hours can have a big impact on annual costs since coincident demand often sets for the entire year.
Brett, coincident demand is your demand during the utility's system peak period (usually summer afternoons). Non-coincident is your individual maximum demand regardless of when it occurs. Coincident charges are higher because they reflect strain on the overall grid.