Client in Charlotte got a 23-day billing period from Duke Energy on their SGS schedule. Bill shows October 1-23 with normal kWh usage but the demand charge seems wrong. They're charging full monthly demand rate for a 23-day period. Should demand charges be prorated for short billing periods? The tariff language is vague about this situation.
Duke Energy 23-day billing period
Derek, demand charges are typically based on the actual peak demand during the billing period, regardless of length. If their peak was 500 kW during those 23 days, they pay for 500 kW at the full monthly rate. The issue would be if Duke is applying some kind of proration factor to inflate the demand charge. Check the actual meter data against what they're billing.
Had this exact situation with Georgia Power last year. Short billing periods usually happen due to meter reading schedule changes or holidays. The demand charge should be based on actual peak demand during the period, not prorated up to simulate a full month. If Duke is doing that, it's an error. File a dispute and ask for the interval data to verify the actual peak demand reading.