Home Guy wrote:

So are you saying that customers with "demand meters" are billed on
the basis of their peak demand - a reading based on only a few
minutes worth of energy usage as seen over an entire billing period?

How is that a fair or equitable way to bill a customer?


Because the cost to generate the electricity is small compared to the cost
to deliver the energy. The cost to deliver the energy, in turn, is
determined by the infrastructure needed (poles, transformers, generation
capability, etc.). A commercial customer with even a short peak demand may
require more infrastructure to support that demand than dozens of
residential customers.