Maximum Demand Calculation

Maximum demand quantifies the highest sustained load and drives billing, equipment sizing, and operational decisions. Accurate measurement (appropriate interval choice), attention to power factor and diversity, and active demand-management strategies are the primary levers to control MD and its financial and technical impacts.

If you have 100 light bulbs, the code might assume only 75% will be on at once, allowing you to size the circuit for 75 bulbs instead of 100. 3. How to Calculate It (The Basic Steps) maximum demand calculation

Most commercial tariffs include a kVA demand charge (e.g., $15 per kVA per month). An accurate MD calculation allows you to negotiate a lower contracted capacity with the utility. Overestimating by 200 kVA could cost you $36,000 annually in wasted demand charges. Maximum demand quantifies the highest sustained load and