TAX: applied to total bill PEAK PERIOD:

On-Peak Hours: 10 a.m.-8 p.m., MON-FRI. Off-Peak Hours: All remaining hours.

Commercial General Service Rate with Demand Component

Gas rates for the commercial or industrial customer may involve a demand charge. The method for calculating this type of bill is done in the same manner as an electric rate with a demand charge. The example in Table

18.5 comes from Northern Illinois Gas Company.

Energy Usage - 11,500 MMBtu; Billing Demand - 400 MMBtu; Season - Winter

Customer Charge: $325.00

Energy Charge: $4,899.00 Purchased Gas Adjustment

(Energy Cost Adjustment): $28,221.00

Demand Charge: $2,828.00

Total Charge: $38,122.92


Once a customer understands how utility rates are implemented, he/she can perform a simple load study to make use of this information. A load study will help the energy user to identify his load patterns, amount and time of occurrence of maximum load, and the load factor. This information can be used to modify use in ways that can lower electric or gas bills. It can also help the customer to determine the most appropriate rate to use.

The basic steps of a utility load study are shown in Table 18.6.

The first step is to collect historical load data. Past bills are one source for this information. One year of data is necessary to identify seasonal patterns; two or more years of data is preferable. Select a study period that is fairly representative of normal consumption conditions.

The next step is to organize the data so that use patterns are evident. One way to analyze the data is to plot the kWh usage, the maximum demand, and the load factor. The load factor is the ratio of the average demand to the maximum demand. The average demand is determined by the usage in kWh divided by the total number of hours (24 x number of days) in the billing period. The number of days in the billing period may vary depending on how often the meter is read. (See Table 18.7.)

Table 18.5 Commercial gas rate with demand component.

Company: Northern Illinois Gas Company

Rate Class: Commercial/Industrial Large

Rate Type: General Service

Rate Name: Schedule 6

Effective Date: 09/01/89

Qualifications: General commercial use. All charges are shown per MMBtu.

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