How do peak demand and usage patterns influence costs?

Peak demand and usage patterns have a significant impact on your electricity costs because many commercial rate structures include demand charges. Utilities measure your highest level of electricity use during a set interval (often 15 or 30 minutes) within the billing period. The higher that peak, the larger your demand charge, regardless of your total consumption. Similarly, if your usage spikes during on‑peak hours when wholesale prices are high, you will pay more under time‑of‑use or variable‑rate plans. By spreading out high‑load activities, shifting flexible processes to off‑peak times, and implementing energy management systems to reduce peaks, you can lower both demand charges and overall energy costs.