How are minimum demand requirements categorized?

Minimum demand requirements are categorized by kW levels because this measurement provides a clear, quantifiable way to assess the electricity demand that a utility can expect from its customers. kW, or kilowatts, represents the rate of energy consumption at any given time and is critical for utilities to determine capacity needs, plan infrastructure, and manage load effectively.

By focusing on kW levels, utilities can categorize customers based on their demand, which helps in forecasting energy usage and ensuring that there is adequate supply to meet these demands. This method allows for better management of resources and pricing strategies tailored to different customer categories based on their energy consumption patterns.

Other methods like geographic region, size of the customer base, or billing cycles do not directly connect to the core aspect of demand management, which is fundamentally centered around the actual consumption of energy measured in kW.