What is a demand charge?

High-volume electricity users pay demand charges to the PUD to recover the utility's costs of providing maximum electrical load. The PUD itself pays demand charges to its largest electricity supplier, the Bonneville Power Administration (BPA). The PUD also must build and maintain equipment, and supply extra capacity, to customers who have maximum load requirements. The PUD’s charge is for all kilowatts over 100 kW per month for Schedule 20 customers. You will find a list of all rate schedules here.