Utility rates

The utility charges for electricity and gas consumption. The rate schedules used to calculate the utility bills can be complex. It is the goal of the building manager to choose rates that best fit the building energy use so that the operating costs are minimized.

Customers can be charged for consumption and demand. Consumption is the total kWh of electricity or GJ of gas consumed over the billing period, while demand is the highest instantaneous rate of consumption. Usually only a demand on electricity (in kW) is used.

Block rates

Block rates vary the cost of electricity depending on how much electricity is used. The first block has a given size and cost. When that block is "filled" you move on to the next block, and so on.

Time of use rates

Time-of-day rates vary the cost of electricity at each hour of the day. The highest rates are typically from noon through 3 PM, corresponding with high electricity use for cooling.

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