What is demand?
What’s the difference 
between kilowatts and 
kilowatt-hours?
can be just as important as how 
much you use.
If you are on a time of use 
rate,
your bill is based on how much 
energy you use,
when you use it and, for some 
customers,
their maximum demand or load,
or how much is used at any one 
time.   
The maximum load at any point in 
time is called Electric Demand
and it is measured in kilowatts.
The more electricity used at one
time,
the higher the demand and the 
harder
the grid has to work to meet 
your needs.
The amount of electricity used 
over a period of time
is measured in kilowatt hours. 
Let’s take a look at an example 
of energy use and demand:
One 100 watt light bulb
turned on for 10 hours uses 
1 kilowatt hour.
And ten, 100 watt lightbulbs
turned on for one hour also use 
1 kilowatt hour.
The amount of energy used  1 
kilowatt hour  is the same.
But the 10 lights used at once
have 10 times the demand because
they are all on at the same 
time. 
In general, demand charges are 
based on
the highest average electric 
load of any 15 minute period.
The demand charge helps pay for 
the equipment needed
to provide electric service 
based on your usage.
So how do I lower my demand and 
save on my bill?
Managing demand is all about 
managing
when you use various equipment.
You can reduce demand by 
staggering
when you turn on or use 
equipment.
Also having more 
energy-efficient equipment can 
help.
Often reducing demand can be as 
simple as
improving lighting or making 
adjustments
to when equipment is used.  
We offer a variety of services
to help businesses manage their 
demand
and reduce energy use.  
For more information about rates
or for energy saving tips,
visit sdge.com/BusinessRates. 
