What does "Maximum Demand" refer to in utility terms?

In utility terminology, "Maximum Demand" specifically refers to the highest average kilowatt load recorded over a designated period, typically measured in intervals such as 15 or 30 minutes within a billing cycle. This measurement is crucial for utilities as it helps them assess the peak usage times and plan for capacity needs, infrastructure investment, and operational strategies accordingly.

Understanding this definition is vital for utility marketing representatives as it directly impacts demand charges that customers may incur. Utilities allocate costs based on the maximum demand, making it essential for users to be aware of their peak consumption patterns to manage expenses effectively.

The other concepts presented relate to energy consumption or demand patterns but do not accurately define "Maximum Demand" as understood in the utility sector. For instance, the amount of energy used at peak times is more generalized and does not account for the averaging process over a specified period, while the lowest demand and total energy consumed provide different insights that do not encapsulate the maximum demand concept.