Home > Term: demand charge
demand charge
The portion of a rate for gas service which is billed to the customer whether they use the service or not. Depending on the rate design this charge is based on actual or estimated peak usage (1 or 3 days), annual needs or a combination of the two. Compare COMMODITY CHARGE.
- Part of Speech: noun
- Industry/Domain: Energy
- Category: Natural gas
- Company: AGA
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- JJD
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