Many utilities base charges on the highest MD in the last 12 months. You could hit 2,000 kVA once during a test, and pay for that capacity for a full year. to avoid ratchet clauses.

Applying engineering justification based on known operational profiles, typically reserved for complex industrial plants with highly predictable, automated load sequences.

Method 2: Calculation by Assessment and Monitoring (Empirical)

To illustrate the methodology, consider a balanced three-phase (

Used when designing a new installation. You sum all connected loads, then apply demand factors and diversity factors.

Group identical or similar load types together. Different types of equipment exhibit distinct operational behaviors. For example, a water heater runs intermittently, whereas server room cooling runs continuously. Step 3: Apply Diversity/Demand Factors