What is Demand?

Demand is the highest average kilowatts reached and maintained on a 15-to-30-minute interval within a billing period.

If your demand reached 50kW, for example, and stays there for 15 minutes, the meter needle remains at 50kW unless your demand exceeds that level.

If your demand later reached 55 kW and stays there for 15 minutes, the needle will then stay at 55 kW. This is known as your peak demand.

The new index point is maintained, even when you use electricity below 55 kW, until the meter reader comes to record the demand and resets the meter back to zero.

Why We Charge for Demand

To meet your peak load we need to maintain a vast array of equipment including transformers, wires, substations and generating stations on constant standby. We need enough equipment and it must be large enough to meet your peak consumption periods.

Billing based on demand values ensures that we have the right equipment to support larger loads and provide the needed power for your business’ operation.

Demand charges and smart meters

Some customers on the G1 Small General Service (Demand) rate were previously not charged for monthly peak demand because their meters did not have the capability to measure it.

We are upgrading all electric meters in Massachusetts to smart meters that have the capability to record peak demand. As a result, you may notice a higher total bill after having a smart meter installed. This is not an error or malfunction but reflects the adoption of new meter technology with additional capabilities.

You have the option of switching from the G1 Demand rate to the G1 Non-Demand rate, which doesn't include a peak demand charge. However, depending on your specific energy usage, the Non-Demand rate may not result in significant cost savings for you. We encourage you to contact our call center to discuss your options with a customer representative.