Energy & Sustainability worked example

Utility Demand Charge at 110% billing applicability: a worked example

Push billing applicability up to 110% and the picture changes. This example computes every intermediate figure at that operating point. a facility or utility manager needs to estimate demand charges from monthly peak kW

The inputs for this scenario

  • Billing peak demand: 920 kW (unchanged)
  • Demand charge rate: 18.5 $ / kW (unchanged)
  • Billing applicability: 110 % (raised for this scenario; the documented default is 100)
  • Fixed demand-related fees: 450 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable demand charge = billing peak demand × demand charge rate × billing applicability) to the inputs above produces each figure below.
  • At this operating point the engine returns 19,172 $ for total utility demand charge, the number this scenario is built around.
  • At this operating point the engine returns 20.84 $ / kW for demand charge per billed kw.
  • At this operating point the engine returns 18,722 $ for variable demand charge.
  • At this operating point the engine returns 450 $ for fixed demand-related fees.

How this compares with the baseline

  • Against the tool's baseline example, where billing applicability sits at 100% and the headline result is 17,470 $, this scenario comes in 9.74% above the baseline at 19,172 $.
  • It computes the demand portion of a utility bill: peak kW times the demand rate, scaled by billing applicability, plus fixed demand-related fees. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total utility demand charge: 19,172 $ (headline result)
  • Demand charge per billed kW: 20.84 $ / kW
  • Variable demand charge: 18,722 $
  • Fixed demand-related fees: 450 $

Run it with your numbers

  • Every input above is editable in the live Utility Demand Charge calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.