Max Demand 99%

| Misconception | Reality | |---------------|---------| | "My peak amperage at motor start is my MD" | MD ignores sub-cycle or sub-minute spikes. A 2000 A inrush for 2 seconds doesn’t affect 15-min average. | | "Lowering energy use always lowers demand" | Not true if energy reduction happens in low-load periods. Demand is about power density , not total energy. | | "Residential customers don’t pay demand" | Most residential tariffs are energy-only, but some utilities are introducing residential demand charges (e.g., for EV fast charging). | | "My monthly MD is the highest instantaneous reading" | No – it’s the highest averaged reading over the demand interval. Always lower than instantaneous peak. |

To understand maximum demand, you must distinguish it from related concepts: max demand

is defined as the highest average power (kW or kVA) drawn by an electrical load within a specified time window (typically 15, 30, or 60 minutes) over a billing period (usually a month). It is a critical parameter for utility companies to size infrastructure (transformers, cables, switchgear) and for consumers to manage operating costs, as most commercial and industrial electricity tariffs include a demand charge based on MD. Demand is about power density , not total energy